Oaken Innovations: The Blockchain Powered Vehicle Future

Oaken Innovation

Oaken is a blockchain technology company focused on secure IoT applications.

In early 2017, Oaken debuted their proof-of-concept, ‘Blockchain Enabled Peer-to-Peer Car Links Application At Consensus’ in New York. This application allows consumers to lease a vehicle from a car owner; using a smart contract on the Ethereum blockchain, a file storage IPFS, and a mobile application to lease and control access to the vehicle.

Prior to their car lease model, they developed a blockchain powered automated toll road system with connected cars. The project won them the top honors among the entire word at the ‘UAE International Blockchain Hackathon’.

Oaken Innovation seeks to provide a glimpse into the mobility future they envision and show why this is important to the payments and financial service industry.

Why are these Services Valuable?

These applications allow for instantaneous remissions between the transacting parties. They do this without the need for payment processors, by using logic coded to a smart contract.

The hyper-secure blockchain based IoT controls add a level of security not currently available on the consumer market, all while reducing or eliminating the need for server infrastructure.

How will these Services Work?

Oaken uses the blockchain for application, logic and data storage reducing traditional server infrastructure. The blockchain is used to store vehicle identity along with GPS. Road and mapping data is then added, after which trusted entities update the decentralized data layer. Smart road sensors will also feed the database.

This allows for a complete view of all vehicles and infrastructure with current construction and traffic conditions while allowing third-party applications to be built on top of this data. It’s also a vehicle database for lease or ride-sharing purposes. This now allows consumer mobile apps for ride-sharing or leasing using this blockchain services layer.

Why is this Important?

Smart Contracts and Microtransactions

In a ride-sharer or lease transaction, things get very interesting. Using blockchain technology, instant value transfer and micro-transactions are now possible. Within one smart contract transaction is instant remittance to several parties; including the vehicle owner and driver, insurance provider, toll-road authority and road tax entity.

The automobile owner and driver receive guaranteed and instantaneous payments of funds. Micro-insurance policies for each ride or lease transaction can be paid through an Escrow contract, then remitted to the insurance provider once the ride is complete with the balance of that Escrow going to the rider or person take the lease.

We can use an Escrow contract for autonomous toll payments and even eliminate toll-gates from the toll-road infrastructure as we can prove the location of the vehicle using GPS. We can even have a smart toll-road infrastructure where roads are only charged during peak hours.

Change in Consumer Behavior

As consumer behavior moves away from purchasing fuel and favoring paid-for-ride mobility over vehicle ownership, road and infrastructure authorities will face a shortfall of tax revenues that currently fund the construction and maintenance of roads. Included in the mobility transaction is a usage-based tax to replace this lost revenue, even for short trips where a fraction of the penny is needed for taxation.

All of these parties receive the benefits of instantaneous remittance, all included in a single transaction user experience, all without the need for payment processing intermediaries.

Effective Energy Consumption and Redistribution

With this blockchain platform, in an autonomous driving world, we get to go beyond rider mobility in other applications. Solar energy production is highest when the sun is shining the most. That’s usually in the middle of the day. Energy demand typically spikes in the morning and then again in the evening, at a time when solar energy production is weakest.

During low mobility demand times, an automated vehicle can store energy during peak production times. The energy can then be delivered as and when it is needed.

A Self-healing Mesh Network

Additionally, since the automobiles are equipped with 5G connectivity, Oaken can provide a self-healing mesh network across large areas; as well as partition consumer wifi service, all while the vehicles receive micro-transaction reimbursements for sharing their internet connection.

Watch the video below, to get a better idea of Oaken’s Blockchain vehicle mobility network:

About Bank Of Hodlers

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