Shanghai-based electric vehicle and battery supplier BYD is ready to install in its cars a carbon banking solution running on the VeChainThor public blockchain, the VeChain Foundation revealed in a Medium post on Wednesday.
Now ready for mass production, the application has passed a series of proof of concepts (PoC) carried out by Warren Buffett-backed BYD, VeChain, and Norway-based quality assurance and risk management firm DNV GL.
The so-called Carbon Credit solution available on the vehicle’s computer will gather driving data, like electricity consumption and mileage, and store it on the VeChainThor platform. An emission reduction formula developed by DNV GL will then award drivers carbon credits, which can be used to buy products and services in the carbon banking ecosystem, a video in the Medium publication explains.
The blockchain app will, however, be applicable not only for drivers. Car dealership shops and repair garages will provide and consolidate basic vehicle information and catalogue repairs. Insurance firms will, in turn, utilize the data when preparing product packages for their customers.
“As the global leader in green car manufacturing, BYD offered us the opportunity to pioneer real change. It takes innovators like BYD to make the world a cleaner place. Carbon banking will be a new reality for billions,” VeChain CEO and co-founder Sunny Lu commented.
Without going into details about any potential partners, Lu asserted in his Twitter profile that the carbon bank ecosystem is set to expand:
I know partnerships cannot satisfy you guys any more, so let’s go app directly. More players will join one by one for this Carbon Ecosystem. https://t.co/Obah3P6cEW
September seems to begin pretty neatly for VeChain, as the automotive deal followed a partnership the company inked with the People’s Insurance Company of China (PICC) and DNV GL on Sunday. According to the arrangement, VeChain and the Oslo-based firm will help PICC deploy blockchain technology in its operations.
Despite the recent news, however, the VeChain (VET) coin is currently in the red. The negative price development has left some Twitter users puzzled:
So VeChain announces 2 of the biggest confirmed , blockchain use cases in the world to date !! and price dumps . WTF cryptoworld !!!! Clearly there is part of Market psychology that im just not getting .