Two US-Based Startups Want To Bring The Second-Hand Car Market To A Blockchain

In the latest crypto news, we are again focusing on the promising technology called blockchain. In this case, blockchain is seen as a great way to revolutionize the US second-hand car market and bring the insurance and financing in its power.

The two startups include the names of a crypto non-profit named the Fusion Foundation on one side – and the Automotive eXchange Platform (AXP) on the other. The two startups are planning to join forces and partner up to bring this solution.

The first step in this kind of a partnership, according to one announcement which was published on Monday, is to integrate the Fusion blockchain platform and digitize the current database that AXP has of more than 10 million automobiles – all in order to properly track and audit them.

Meanwhile, the automobile industry has long struggled with lack of transparency and widespread information inaccuracies that come from titles all the way through financing, according to the CEO and co-founder of AXP Max Kane. As he said:

“There’s a million vehicles on the road that have ‘washed’ titles, which means there is fraud there. The insurance industry is hit with billions in fraud because of missing information, drivers providing the wrong information and inaccurate reporting.”

Right now, the AXP network covers more than 25,000 car dealers across the country and plans to extend the relationships with counterparts in the financing and loan origination industry as well.

“We don’t need the government or dealers to worry about running a node yet. We want them to use an application that they are familiar with. The number of nodes will be as much as we need to support a secure blockchain,” the founder of Fusion Foundation DJ Qian noted.