In a nutshell:
Built on the Blockchain, VINchain is a marketplace for used vehicle database. It aims to provide a complete vehicle history by recording all information pertaining to vehicles. Network participants will be able to purchase car history reports using either Fiat or VIN tokens.
ICO VinChain facts:
Supply: 1 000 000 000 VIN
For sale: 600 000 000 VIN
Pre-sale: 293.6 ETH
Public token sale: 2500 ETH Start date: 01-02-2018 End-date: 15-04-2018
Hard Cap: 23 250 ETH
Soft Cap: 3 300 ETH
VinChain: Point of departure
Every day hundreds of thousands of used cars are sold in the second-hand market around the world. But are these sold cars well-conditioned? Only sellers know about their cars technical condition!
This kind of information gap between sellers and buyers creates what’s known as asymmetric information; the reason behind every disappointing car purchase.
The problem: Asymmetric information
The notion of asymmetric information was outlined by Nobel Prize winning economist George Akerlof in his 1970 paper intitled: “The Market for Lemons: Quality Uncertainty and the Market Mechanism.”
Akerlof describes the dynamics of markets where one party (the sellers) know significantly more about the product than the other party (the buyers) and explains how the difference of qualifications can lead to unfair advantages to both sellers and buyers.
In his paper, The Nobel Prize winning economist uses the market for used cars as an example of this problem.
Simply put, here is what happens in the market for used cars. The market holds cars of good and bad qualities; and only car owners (sellers) know the technical condition of their cars.
Because buyers can be victims of fraud, they don’t trust a used-car salesman. So, in order to hedge such risk, they lower the price they are willing to pay. Poor pricing drive sellers of high-quality cars to reject the offered price and leave the market. As a result, buyers bear a higher risk of purchasing lemons. In American colloquial, a lemon is a car that is found to be defective only after it has been bought.
If information is perfect, a buyer can easily distinguish a gem car (high-quality-car) from a lemon car (low-quality-car). How this can be possible?
To make it all possible, let me introduce you VINchain network:
VINchain, a decentralized blockchain-based alternative:
VINchain provides the solution to asymmetric information. Powered by blockchain technology, the network creates 100% transparent market and reliable information that is accessible to everyone. It provides a complete history of the vehicle during its entire period of use.
For each vehicle a blockchain-passport is issued which will be stored in a distributed registry. Both buyers and sellers will have equal access to information. As a result, the network will solve trust issues as information can be easily verified.
From the car owner’s side, the latter can contribute to the repository of data on the Blockchain with the help of vehicle tracking device and the VINchain app.
With the device and the app, the car owner will be able to find his car in a crowded parking lot. App’s other uses is suggesting economical ways to drive and recording statistics about the owner’s driving style. These statistics can be shared to prove owner’s proficiency as a safe driver. Thus, they can increase the value of one’s car when set for sale and can benefit from discounts from insurance companies.
Also, B2B companies will take advantage from the removal of asymmetric information; insurance companies, car dealers, car manufacturers, banks and service stations will be able to use the information in the VINchain Blockchain.
How does VIN tokens work?
The blockchain-passport is connected to the Vehicle Identification Number (VIN). And when you request for a vehicle record, the system will search for the information using the VIN-code of the corresponding vehicle. Once the system checks for the availability of data related to the car, a report is provided. In exchange for that report, you will pay with VIN tokens. Then, the tokens will be distributed between information providers depending on the value of the provided information to the community. Car owners’ who contribute their data will be also paid with VIN tokens.
The team has a significant experience in the automotive space. The project unites many former employees from well-known companies.
Alex Miles, a marketing strategist and VINchain CEO has implemented a strong marketing campaign to promote his project. The Vinchain is widely spread across the internet providing all the information about the project and the team is available to answer all questions, whenever you ask for. The website is well built and impressive. The US-based team arms himself with superstars as advisors like the successful entrepreneur and one of the great thinkers Ryan Scott. The VINchain team is a capable one and paving the way to triumph on the market.
VINchain Road Map
In its much anticipated ICO that is running now, the company succeeded to collect $1.5 million at current prices with 1670 ETH in less than 24 hours. The ICO will be held in 7 stages. Each stage corresponds to a particular amount of ETH. Once that amount is reached, the next stage starts. It’s like a race the earlier you invest in this project the more tokens you earn for 1 ETH.
A final word
In markets and transactions, information is of the essence. Providing it, helps an easy decision making. A step further, offering a trustworthy one helps to complete a confident purchase. As a response to that, the VINchain network aims to create a transparent market that everyone can benefit from. Hence, it solves the problem of asymmetric information coined by George Akerlof. All of information are recorded in a secure and reliable network. Undeniably, the automotive industry may profit from such innovation.
Editor’s Notes and Disclosure: The author holds no business stakes or dividends at the startup. This article is an informative one. Both the author and Decentral Magazine encourage our readers to seek advice from a financial advisor and do their due diligence before considering any investment.