KAR Auction Services has joined the Mobility Open Blockchain Initiative (MOBI), a consortium of global automotive industry leaders exploring block chain technology’s potential use in the digital mobility ecosystem.
The overall goal of KAR and the consortium is to create a more transparent and trustworthy ecosystem within the automotive industry.
KAR is the first auto remarketer to join the consortium, according to a statement in a company announcement. One goal that KAR hopes to accomplish by joining the consortium is collaborating on the development of standardized blockchain-enabled vehicle data and mobility services applications.
“Blockchain has the potential to transform the automotive industry – how dealers and consumers purchase vehicles, insure vehicles and use vehicles on a day-to-day basis,” said Chris Ballinger, chairman and CEO at MOBI. “KAR’s participation with other automotive industry leaders such as global manufacturers, suppliers, startups, and government agencies means we can all work toward developing a network we trust and adopt.”
Blockchain technology, according to KAR, operates by cryptographically distributing information to a network of independent computers. This process ensures that transactions are secure and that data privacy, ownership rights, and integrity are protected.