Blockchain Can Help Peer-To-Peer Car Lending Schemes Gain Traction

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Blockchain technology can help car-sharing companies to track a person using the car any time. According to industry analysts, the car sharing economy is expected to hit $335 billion by the year 2025.

Increase in popularity

The car sharing idea has been gaining a lot of interest among car drivers over the recent years. According to estimates by Global Market Insight, the peer-to-peer car sharing sector will amount to $11 billion. The growth has largely been attributed to raising cost of owning a car.

Instead of having their assets lay idle, car owners can rent out their cars to other people. This way, the cost of ownership of the car is shared. On the other hand, the hirer of the car gets a much better deal than what car rental companies offer. Modern digital systems are able to connect motorists together. This way, one car is able to serve the requirements of several motorists.

What are the challenges involved?

The biggest challenge with the Peer-to-peer lending system is trust. The car owner has to have total trust in the person hiring the car. Additionally, the car owner has to be sure that the hirer has enough money to cover the period the car is hired. The owner of the vehicle would also like to track where the car is as well as the condition in which it is being driven. On the side of the hirer, they would love to know if they are hiring the car from the original owner and that the data exchanged between the two parties is secure.

This whole cycle needs a system that can connect car owners and those seeking to hire the cars. It is this raise in shared cars that is causing the need for a P2P platform to connect the two parties.

Recently Volkswagen announced that it is testing a blockchain technology to be used in preventing vehicle tampering as well as allow secure control on who uses the car. This application is one among many that show how car makers are considering using blockchain technology beyond just business.

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