Blockchain Proposed As a Solution to Odometer Tampering

Blockchain Proposed As a Solution to Odometer Tampering

According to reports, the European Parliament released a memo implying that blockchain could be an effective tool in the prevention of odometer tampering.

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According to reports, the European Parliament released a memo implying that blockchain could be an effective tool in the prevention of odometer tampering.

In a report titled “Odometer tampering; measures to prevent it”, which was released by the Directorate General in charge of Internal Policies, it was stated that odometer tampering was still a problem within the EU and affected nearly all second-hand car markets operating in Member States.

One of the solutions put forward in the report was that current blockchain technology proposed by the electronic and car-engineering sectors could help facilitate the downloading of GPS and mileage data from automobiles, and thereafter its transfer to a digital book. It also made clear that the application of cryptography would give users a high level of integrity, protection, and control of data.

The report further outlined that a distributed ledger was just one of the three measures targeted at preventing odometer tampering. The other two will focus on establishing a common framework based on ISO (International Standards) and equipping vehicles with ECUs (electronic control units) and components with specialized technical solutions created and implemented by the various car manufacturers.

A recent study showed that 10% to 50% of cars in a range of second-hand car markets in the EU Member States have had their odometers manipulated because of ineffective coordination at a multi-national level and inadequate exchange of information on mileage readings.

The reported went on to state:

Cars having rolled-back odometers make up 30% to 40% of the total number of automobiles traded across EU borders. These figures clearly show that odometer tampering is indeed a serious issue, aside from it being a widespread phenomenon among EU States, affecting nearly all second-hand car markets operating in the region.

In addition, consumers have also suffered because of this problem. According to estimates, the EU losses several billion euros each year due to the rollback of vehicles, thereby causing its second-hand car market to be ranked the lowest when it comes to trust by EU consumers.

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