Over the years, car sales and management (e.g, tracking a car’s history) have been challenging, and using centralized protocols has made it practically impossible to achieve efficient management and tracking systems for such a purpose. Notable reasons for this include trust issues, limited access to information from a global network of users, and lack of transparency, among several others.
For instance, it is quite difficult to access a detailed history of a car before making a purchase. As a result, automobile dealers are mostly in control of the situation, and can easily control the market’s value so that it favours only them.
On the other hand, a consumer or buyer who is unaware of a vehicle’s full history cannot make a well-informed decision about a potential purchase.
Now, after many years of no meaningful endeavour to resolve these major challenges, Carnomaly, a decentralized protocol for buying, selling, and owning cars, has emerged to provide a sustainable solution to these various challenges.
In an exclusive interview with DailyCoin, Josh Taylor, the chief operating officer at Carnomaly, discussed the startup’s efforts to empower consumers by bringing transparency to the automotive industry.
Before we go into the specifics, Carnomaly is a blockchain-based startup that offers a wide range of blockchain solutions, including the provision of auto loans, car sales and purchases. In addition, Carnomaly offers all the perks of blockchain, such as accessibility, security, and transparency, which makes it even more unique.
“Carnomaly Brings Power back to People”
Kicking off the interview, Taylor explained how it is very difficult for people to get hold of a documented history that can be evaluated or probed. According to him, existing alternatives such as Carfax reports, though they claim to supply vehicle history reports to individuals and businesses, do not allow people to interact with them.
In Taylor’s word;
“People get a Carfax, they get a history report on their vehicle, but they can't interact with it in any way, other than paying for it and seeing what's on there.“
In an attempt to fix this apparent deficiency, Carnomaly has decided to host a similar reporting/tracking system on the blockchain, one that puts the consumer in charge. For instance, people can seamlessly upload details of their car’s periodic maintenance, and other relevant information, such as if a vehicle part or component was replaced, or if an accident occurred, resulting in repairs being made.
By putting power in the hands of the consumer, Carnomaly is not only able to establish transparency between dealers and consumers, but also to introduce a fair pricing and valuation system.
According to Taylor, a major problem in the automotive industry is that the dealers are in control; they control and determine the prices, and though consumers try their best to be persuasive, it is not often a fair or pleasant experience.
“So, what we're trying to do is ensure that not just the consumers, but also the dealers have more transparency on what vehicles are coming in, so that they can offer a fair trade and that the person bringing their vehicle in feels like they're getting a fair price for the vehicle that they've maintained,”
In Taylor’s words, by putting consumers in charge, Carnomaly, is able to “bring back power to the people.”
Carnomaly to Bring Transparency to the Automotive Industry
One of the primary objectives of Carnomaly is to bring transparency to the automotive industry, and it is able to achieve this by making sure that all stakeholders are involved in the end-to-end process of data collection and management.
As stated earlier, a car owner can provide details of the maintenance performed on a vehicle by uploading each instance on the decentralized protocol. On the other side, a potential buyer can go through the vehicle’s history, which has thus been made public, and decide what the vehicle’s actual value should be, while reaching an agreement with the car dealership or owner themselves.
“When you go to purchase a vehicle, you can see how many miles it has. You can see where it was driven, how many owners, if it was in any accidents, but you can't see what was put into the vehicle, what fluids that they used, what filters and so forth,”
By providing all stakeholders with unfiltered accessibility to data, Carnomaly is able to facilitate truly decentralized and transparent automobile sales and management.
People are Incentivized to Upload their Car History
Getting people to share their vehicle’s history doesn’t come easy either, considering that it could play out against them in certain instances. For example, in those situations where changes made to a vehicle could reduce its resale value, some owners would typically decide to withhold that information. So how does Carnomaly plan to solve this?
Incentives! That’s exactly how Carnmaly plans to get people to upload all necessary information about their vehicles. The decentralized protocol therefore rewards car owners for being honest.
“You will be able to create a membership using a membership portal. Then, every time you perform maintenance on your vehicle, you open the app, scan your VIN, indicate how many miles it has, and then you report in with the maintenance that you performed. Uploading your receipts and other relevant documentation attracts a 10% reward back on all of your maintenance,”
Once the data has been provided, the engineering team behind the decentralized protocol proceeds to review and verify the authenticity of the submitted data.
Ultimately, Carnomaly wants to set a new standard for the automotive industry, one that is decentralized, secure and transparent.
On The Flipside
- Carnomaly is a brand new solution, which implies that it is a floating project with a lot of development still ongoing. That comes with the territory. That said, it may take a little longer than scheduled for the project to be ready to launch.
- As a new project, Carnomaly will have to deal with both the native regulations, as well as those of the DeFi space as a hybrid liaison in the space.
Why You Should Care?
The demand for used vehicles is typically higher than that of new ones, by at least by a ratio of 65:35, which implies that a higher number of people are at risk of buying cars at an unfair price and condition. By leveraging Carnomaly’s blockchain solution, more people will be able to make informed decisions ahead of vehicle purchases.
Watch the full interview here: