Building the
New Economy of Movement

BLOCKCHAIN FOR

VEHICLE IDENTITY
BUSINESS WHITE PAPERJANUARY 2021

MOBI VID0001/WP/2021
Version 2.1

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END OF TERMS AND CONDITIONSINTRODUCTION
The Mobility Open Blockchain Initiative Vehicle Identity Working
Group is a global, multi-stakeholder team, working to create
standards based on blockchain and distributed ledger technologies
for the digital representation of a vehicle — its digital twin. The
standards can be used to establish a vehicle’s digital existence,
manage access control, confirm ownership, and contain key events inthe life of a vehicle for new connected mobility ecosystems.
The team members' backgrounds span the transportation value chain,including vehicle manufacturers, industry service providers,technology companies, governmental and non-governmental entities.
This report is based on numerous discussions, workshops, andresearch. Opinions expressed herein do not necessarily reflect theviews of individual members. Sincere thanks are extended to those
who contributed their unique insights to this report.

Version 1.0 Authors
Lucy Hakobyan, MOBI
Arwen Smit, MOBI

Version 2.0 Updates
Tram Vo, MOBI
Chris Ballinger, MOBI

Reviewers
Joe Bannon, KAR Auction Services,Inc.
Todd Gehrke, Luxoft
Alan Gordon, Ford
Sebastien Henot, Groupe Renault
Don Ho, Quantstamp
Max Huang, Cerebri AI

Matthew Jones, IBM
Piyush Manocha, Accenture
Jim Mason, DMX
Richard Meszaros, Accenture
Boris Polania, Honda

VID I Working Group Co-Chairs
Alan Gordon, Ford
Sebastien Henot, Groupe Renault

VID I Working Group Team Members
Deepak Anand, Accenture
George Ayres, IBM
Murad Baig, Netsol
Sebastian Banescu, Quantstamp
Joe Bannon, KAR Auction Services, Inc.
Sean Batir, BMW
Asmita Bhattacharya, Accenture
Jennifer Blair, IBM
Jason Bolduc, RouteOne
Alain Briançon, PhD, Cerebri AI
Peter Busch, Bosch
Michael Casey, GM
Michelle Corson, On the Road Lending
Carlo Cruz, Toyota North America
Carlo Donadio, Accenture
Shyam Duraiswami, IBM
Michael Fischer, Aioi
David Freeman, DLT Labs
Andreas Freund, Consensys
Todd Gehrke, Luxoft
John Gerryts, Oaken Innovations
Muhammed Hamza, Netsol
J Barrington Hines, Accenture
Don Ho, Quantstamp
Max Huang, Cerebri AI
Divyesh Jadav, IBM
Matthew Jones, IBM
Ian Kendall, Volkswagen

Liang Kong, Volkswagen
Audrius Kucinskas, Car Vertical
Chengnian Long, CPChain
Dani Lopez, Accenture
Kanishk Mahajan, Accenture
Piyush Manocha, Accenture
Jim Mason, DMX
Lowell McComb , BMW
Richard Meszaros, Accenture
John Moon, Honda Innovations
Justin Oesterle, RouteOne
Iliana Oris, Accenture
Boris Polania, Honda
Nick Pudar, GM
Dan Rao, Toyota Financial Services
Wes Reid, DMX
Klaus Uwe Roehm, Bosch
Shyam Sundar, Faraday Future
Priya Tabaddor, Cognizant
Sajjad Thaika, Accenture
Christian Umbach, Xapix
Sowmya Varadarajan, IBM
Wanda Wang, Toyota Ins. Mgmt. Solutions
Juergen Wold, Bosch
Jonathan Yu, Toyota Financial Services
Joe Vander Zanden, Consensys
Bin Zhao, CPChain

MOBI Team
Chris Ballinger, Founder + CEO
Tram Vo, Founder + COO
Rajat Rajbhandari, Working Groups Lead

Robin Pilling, Technical Lead
Annabelle Sbarbatti, Fellow
Kelly Clark, Communications Manager

TABLE OF
CONTENTS

01

Executive Summary05

MOBI VID Standards

09

Asset Visibility

13

Anchor for Additional Use Cases

19

Data Provenance

20

Autonomous Economic Agents

21

Conclusion

23

Bibliography

Next Generation Vehicle Identity

Executive
Summary

A new type of vehicle
identifier will ignite the next
digital revolution in mobility.

Blockchain and distributed ledger technologies (DLT), whencombined with in-vehicle artificial intelligence (AI) and two-way
vehicle-to-anything (V2X) connections, will enable the digitaltransformation of the mobility industry and ignite the biggest
change in mobility economics since the assembly line. The
foundation of all this is a digital identity for vehicles based on
decentralized identifiers (DIDs). DIDs are a cornerstone of nextgeneration web services that are designed to work without thecentralized registries or certificate authorities that secure the1
identities of entities and devices on today’s internet.

MOBI’s Vehicle Identity
creates a vehicle’s “digitaltwin”, enabling theefficiencies and economiesof the digital world to beported to the world ofphysical mobility.

This is particularly important for applications where Internet ofThings (IoT) devices communicate directly in ad-hoc, local
networks at the “edge.” Edge computing is an emerging
technology that optimizes decentralized networks by placing
nodes and processing data as close as possible to its source oruse. Vehicles and smartphones are the two most important
products that share this need for a DID to enable roaming inedge networks.2 The Mobility Open Blockchain Initiative (MOBI)
Vehicle Identity (VID) defines a DID for the vehicle to create avehicle’s digital twin as a crucial building block for mobility andtransportation ecosystems of the future. Whereas AI and V2X
enable the vehicle to become increasingly autonomous, the
MOBI VID permits the vehicle to become an economic agent,transacting with infrastructure, other vehicles, and varioustransportation services.
1. “O“Decentralized Identifiers (DIDs) v1.0 Core Architecture, Data Model, andRepresentations”, W3C Working Draft, 27 December 2020 https://www.w3.org/TR/didcore/
2. “CBAN successfully demonstrates first of its core services and signs MoU with MOBI”
CBAN Press Release, Singapore, 04 November 2020,
https://www.cban.net/post/cban-successfully-demonstrates-first-of-its-core-servicesand-signs-mou-with-mobi

1© 2019-2021 MOBI — VID Business White Paper© 2019-2021 MOBI — VID Business White Paper

2Executive Summary
The New Economy of Movement
VID offers efficiencies andnew business opportunities
across the full span of themobility value chain.

Additional standards covering
mobility use cases will buildon the MOBI VID.

We call this the “New Economy of Movement,” a multi-trillion
dollar digital transaction ecosystem of vehicles, infrastructure,and mobility prosumers (individuals who both consume andproduce mobility data or services). The MOBI VID blockchainbased standards are the keys that enable this digital economy.
MOBI VID supports multi-stakeholder and interoperable
transportation ecosystems to increase transparency,
coordination, and automation between providers andconsumers, creating greener, safer, and more affordable
mobility options.
The MOBI VID is a necessary, but not sufficient, condition for thedigital transformation of global transportation ecosystems.
Many additional DLT/blockchain-based standards will beneeded in addition to the VID. MOBI working groups (WGs)have released or will soon release standards covering:

Connected Mobility Data Marketplace (CMDM) — supports
a blockchain-based data marketplace for all stakeholdersof the mobility and transportation ecosystem
Finance, Securitization, and Smart Contract (FSSC) —supports credit on blockchain, securitization, tokenization ofmobility assets, and fractional ownership
Supply Chain (SC) — supports operational efficiencies,
parts tracking, carbon tracking, and ethical sourcing in theautomotive supply chain
Future WGs are expected to focus on sustainability,
logistics, and V2X payments
This paper provides a high-level introduction to the MOBI VID.
Those seeking a deeper technical understanding can accessthe VID technical specifications and reference implementationarchitecture standards.

Vehicle Identity (VID) I — defines the digital “birth of avehicle” at production with factory specifications

VID II — defines business requirements and reference
implementation for vehicle registration, usage, andmaintenance use cases
Usage-Based Insurance (UBI) — defines technicalspecifications for pay as you go insurance/mobility
Electric Vehicle Grid Integration (EVGI) — supports theincreasing adoption of EVs by creating interoperable
systems for governments, utilities, and the mobility industry

3© 2019-2021 MOBI — VID Business White Paper© 2019-2021 MOBI — VID Business White Paper

4MOBI VID STANDARDS
MOBI’s “Vehicle BirthCertificate” encompasses
information relevant to avehicle’s value andcapabilities when it leaves
the assembly line.

MOBI VID extends thephysical VIN to the digitalworld and immutably links thephysical vehicle to its digitalrecords.

A vehicle’s identity, similar to a human’s identity, begins at birth.
The “Vehicle Birth Certificate” signifies the vehicle’s birth at afactory and is the first “link” in the full lifecycle of the vehicle. In
July 2019, the VID I working group released its first technicalspecifications standard focused on the vehicle birth certificate.
Subsequent standards will build on this and complete the fulllifecycle of the MOBI VID, exploring use cases such as
registration, transfer of ownership, maintenance, and end ofvehicle life.
The MOBI VID is the digital identity of a unique vehicle thatprovides a necessary bridge to the physical asset. It permits
vehicle owners, users, and the transportation IoT ecosystem totrust and verify the vehicle's identity. MOBI VID extends theefficiency and economy of the digital realm to the physicalvehicle in the IoT ecosystem because it is a DID that can beused to prove existence, manage access control, confirm
ownership history, and track events in the life of a vehicle. As aresult, the MOBI VID becomes the string that ties together the
master records for the vehicle’s history and usage data.
Blockchain and DLT enable broader and more efficientcollaboration in business ecosystems. Stakeholders with relevant
read and/or write permissions will be able to interact with thedata stored on the tamper-evident decentralized ledger. Figure
1 on page 7 illustrates the use cases that revolve around MOBI
VID for the transportation ecosystem in the New Economy ofMovement.

MOBI VID is machinereadable, allowing efficient
data sharing, V2X
transactions, and automatedprovision of new mobility
services.

MOBI VID elevates the current best alternative, the VIN, in thefollowing four areas:
The VIN serves as a unique physical identifier for the vehicle.
When integrated with the MOBI VID, other systems/data ofrecord (i.e. ownership, vehicle history, etc.) are trusted andtraceable back to the physical vehicle. MOBI VID enables
the VIN to become a trust anchor and a building block forother use cases
The MOBI VID allows for scalable distributed anddecentralized transportation ecosystems with permissioned
access, controlled coordination, and inputs fromstakeholders
The DLT/blockchain-based vehicle identity is both digitaland standardized, making it machine-readable. This isessential for V2X communication, as well as future
extension into settlements and payments
MOBI VID and its associated metadata are verifiable andtamper evident, therefore reducing the risk of fraud andprotecting data integrity

Vehicle
Finance

Increased asset visibility, antrust anchor for vehicle
services, data provenance,
and autonomous vehicletransactions are some of the
MOBI VID benefits.

Digital Vehicle
Registration
DLT-based
Vehicle Wallet

V2X
Communication

Connected Mobility
Data Marketplace

MOBI VID
Electric Vehicle
Grid Integration

Carbon Footprint
Mgmt

Smart Parking
Mgmt

Figure 1 — MOBI VID Use Cases for the New Economy of Movement

New transportation use cases enabled by the MOBI VID benefit
from four broad features of DLT/blockchain ecosystems. Thesefeatures are listed below and are plotted against time horizon
and scale in Figure 2 on page 8:
Asset Visibility — Improved asset visibility reduces
information asymmetries and frictional costs across theentire transportation services value chain© 2019-2021 MOBI — VID Business White Paper

This paper explores these four features of DLT/blockchain
ecosystems in more detail below. The decentralized nature of
DLT/blockchain requires collaboration, standards adoption, andecosystem implementation to create impactful outcomes for the
stakeholders. While early, it is already clear that
DLT/blockchain-based vehicle identity can bring enormous
value to transportation stakeholders.

Road Usage
Charge (RUC)
Congestion
Mgmt

7

MOBI VID business uses spana range of time horizons andvalue.

Implementation Time

Usage-based
Ins./Transportation
Services

Data Provenance — The trust anchor secures V2X
transactions and data exchange at the edge
Autonomous Economic Agents — Trusted data, trips, andtransactions generated at the edge, along with embedded
profit functions, turn connected vehicles into autonomous
economic agents in the New Economy of Movement

Immutable
Maintenance &Recall Records

Odometer Fraud
Prevention

Anchor for Additional Use Cases — MOBI VID creates thetrust anchor for the next generation of connected mobility
use cases which are increasingly decentralized

Autonomous
Economic Agents
Anchor for Additional
Use Cases
Data Provenance
Asset Visibility

Opportunity Scale
Figure 2 — MOBI VID Benefits Horizon© 2019-2021 MOBI — VID Business White Paper

8

MOBI VID Standards
MOBI VID extends the benefits of better asset visibility to themobility services industry as well. A tamper-evident record ofvehicle identity, starting with the vehicle’s birth, has thepotential to reduce fraud (cost of erroneous information) andauditing cost (cost of trust) for mobility service providers andconsumers. These efficiencies may reduce the market power ofplatform transportation network companies and enable newpeer to peer (P2P) business models.

Asset Visibility
Improved asset visibility anddata provenance will reducethe information asymmetries
that create market
inefficiencies for both new
and used vehicles.

Current industry vehicle identity mechanisms, such as physical
VINs, are highly manual and insufficient. To go beyond the VIN,
third parties have developed proprietary databases, with bothpublic and private records, that contain vehicle history in digitalform. But these siloed and isolated systems often include
repetitive or incorrect data and are not interoperable. This
results in redundancy and high frictional costs for reconciliation,verification, registration, and transfer of vehicle titles.

Visibility of vehicle history and use also improve the efficiency
and fairness of vehicle resale markets. According to the
National Highway Traffic Safety Administration, more than
450,000 vehicles are sold each year with false odometer3
readings resulting in more than 1 billion USD in losses annually.
The transparent and verifiable vehicle records enabled by
DLT/blockchain can help prevent fraudulent and false
information and reduce such losses.

The static and physical nature of the VIN enables fraudulent
identity switching between similar vehicles. A DLT/blockchainbased VIN that is immutable, traceable, updatable, and linkable
to usage records from various stakeholders is resistant to fraud
since it is unlikely that all the data can be changed or erased
unnoticed.
Asset visibility is crucial while transporting and storing vehicles.
Shipping a vehicle from a factory to a dealership can takeweeks, even months, depending on the origin and destination.
An efficient tracking and tracing of vehicle’s custody can
reduce administrative overhead to process shipments thereby
reducing time to transport or inventory the vehicles.
MOBI VID will increasetransparency and reduce
frictional costs at every stepin the manufacturing,
distribution, and mobility
services value chains.

9

From manufacture through distribution, sale, and daily vehicleuse, the MOBI VID will increase transparency thereby reducing
paperwork, lead times, and various administrative costs.
Combined with the traceability offered by decentralized ledger
technology, MOBI VID will allow stakeholders to participate in ashared ledger for vehicle information — a “single source of
truth” — enabling automated contracting, execution, andsettlement across the business ecosystem.

© 2019-2021 MOBI — VID Business White Paper

Odometer fraud is a global
problem that digital ledgers
and digital twins can help
solve.

4

In a report, recently issued by the European Parliament,
blockchain is identified and highlighted as a solution toodometer tampering. Besides the occasional transmissions andrecordings of odometer reading to blockchain, another way tovalidate the mileage is the comparison of multiple sources ofodometer data, such as Global Positioning System (GPS)mileage tracking and the odometer itself. Linking such data to
the corresponding MOBI VID, with the appropriate
certifications, will significantly reduce the “lemons” problem

3. “Odometer Fraud,” National Highway Traffic Safety Administration, accessed June 18,
2019, https://www.nhtsa.gov/equipment/odometer-fraud.
4. ““Odometer Tampering: Measures to Prevent It,” Research for TRAN Committee,
European Parliament, accessed July 15, 2019,https://www.europarl.europa.eu/RegData/etudes/STUD/2017/602012/IPOL_STU(2017)602012_EN.pdf.

© 2019-2021 MOBI — VID Business White Paper

10MOBI VID Standards
and associated economic losses due to information asymmetries
in the used vehicle marketplace.
DLT enabled supply chain
track, trace, and provenancepromise to make recalls,
warrantees, maintenance, andrepairs more efficient.

MOBI VID opens newopportunities to finance andmanage commercial anddealer fleet operations.

Parts trace and track will be key for warranty and recall
management, resulting in more efficient, accurate, and safer
mobility. The impact of recalls on businesses include not only
short-term costs associated with operational replacements,
5
which in 2016 grew to 22 billion USD, but also long-term
effects of loss of consumer trust in the brand and reduced
residual values. According to one study, the vehicles affected by
Takata airbags saw a greater decline in residual values thanvehicles not under the airbag recall.6 While manufacturers havesubstantially improved the reporting of parts internally, industrywide shared parts tracking, as part of a consortium effort thatincorporates both quality and authenticity data, has thepotential to reduce recalls and warranty claims and increase
consumer trust.

managers, banks, and others. The VID also opens up the
possibility for simplified and faster digital escrows for vehicle
ownership transfers that today are often avoided due to highcosts.

Another benefit of the MOBI VID is more transparent information
on used vehicles and a fairer, more efficient, secondary market.
DLT/blockchain-based birth certificates overlayed by data from
IoT devices, parts, and history of events on each of thesedevices will create a digital twin of a vehicle with a live
snapshot of its condition and state. This provides more accurate
estimates of residual values and resale value. The asset visibility
that MOBI VID provides is especially applicable for asset-based
operators such as dealers, resellers, car auctions, fleet

5. Anisa Jibrell, “Automotive Recall Bill Grew 26% to $22billion in 2016, Study Says,”
Automotive News, January 30, 2018,https://www.autonews.com/article/20180130/RETAIL05/180139974/auto-recall-billgrew-26-to-22-billion-in-2016-study-says
6. “Takata Airbag Recall Effect on Used Pricing,” Auto Remarketing, April 3, 2015,
https://www.autoremarketing.com/trends/takata-airbag-recall-effect-on-used-pricing.

11© 2019-2021 MOBI — VID Business White Paper© 2019-2021 MOBI — VID Business White Paper

12

MOBI VID Standards
Anchor for Additional Use Cases
The combination of MOBI VID
and trusted location createsa "trusted trip," opening up
new opportunities for pay peruse mobility, smart cities, andinfrastructure finance.

The MOBI VID functions as an anchor for additional use cases.
These use cases span from birth to end of life for a vehicle. The
VID can be overlaid with visibility to infrastructure (i.e. roads, toll
booths, electrical grid), vastly expanding its usefulness andvalue to adjacent ecosystems. Combining MOBI’s VID withtrusted location data results in a “trusted trip” that gives rise to
many new mobility services and infrastructure monetization
opportunities.
Cities, transit agencies, and other urban infrastructure owners
can use the trusted trip data to charge for road use based on
the vehicle weight as well as traffic conditions (congestion
pricing), fuel used (pollution and carbon pricing), and any otherimportant factors. Marginal cost pricing for infrastructure is ahuge opportunity for the public sector to monetize their 25
trillion USD of road and transportation assets that cannot bemonetized without DLT/blockchain vehicle identity andpayments. In the process, the public sector will gain powerful
new tools to influence mobility behaviors and sustainable newsources for infrastructure finance.

MOBI’s Electric Vehicle
standard builds on VID toenable new opportunities tomonetize EVs and charging
infrastructure.

13

Vehicle to infrastructure (V2I) transactions also include electricvehicles to grid transactions. Using MOBI VID, EVs can not only
connect to charging stations by validating their identity but also
pay for the charging, offer battery storage to the grid, andprovide energy use data to aid in the management of grid
demand. The MOBI EVGI DLT/blockchain-based Technical
Specifications Standard released in October 2020 addresses
use cases like tokenized carbon credits, vehicle to grid storage,
and other ancillary V2I services for EVs.

© 2019-2021 MOBI — VID Business White Paper

MOBI’s Usage Based
Insurance standard builds on
the VID to promote new
insurance policies which offer
better value for customers,
reduce carrier risk, andpromote safer driving.

This same tracking, payment, and settlement used in V2I
transactions can be used by insurers to provide contextual,
usage-based insurance (UBI), a market that is estimated to hit
7
107 billion USD by 2024. UBI aims to empower insurancecompanies to develop insurance schemes based on driving
behavior data captured from on-vehicle telematics. This
technology redefines insurance to a per user per vehicle model.
Because the MOBI VID can “talk” to telematics, its human driver,and infrastructure, an integrated, usage-based, risk underwriting
model is possible.

Revenues from new mobility
services, including vehicle
payments, are expected to
exceed 1T USD per year
sometime in the next decade.

According to McKinsey, “consumer mobility behavior is changing,leading to up to one out of ten cars sold in 2030 potentiallybeing a shared vehicle and the subsequent rise of a market for
8
fit-for-purpose mobility solutions.” Accenture estimates thatrevenues from mobility services will hit ~1.35 trillion USD — with
9
profits reaching as much as 248 billion USD.
The next wave of convergence in mobility is sharing the samevehicle for different services. Without a trusted digital identifier
like the MOBI VID, coordination of multi-use assets andutilization at scale is not feasible. In a case like P2P rideshare,for example, vehicle owners and users may not be able totransact without third party intermediaries unless decentralized
vehicle and user identity management is in place. New
7. Von Paul Gao, Hans-Werner Kaas, Detlev Mohr, and Dominik Wee,“Automotive Revolution –Perspective Towards 2030,” McKinsey & Company, January 2016,
https://www.mckinsey.com/industries/automotive-and-assembly/ourinsights/disruptive-trends-that-will-transform-the-auto-industry/de-de.
8. “Mobility as a Service,” Accenture, Accessed June 18, 2019,https://www.accenture.com/_acnmedia/PDF-71/Accenture-Mobility-Service.pdf
9. Global Market Insights. 2018. “Usage-based Insurance Market to hit $107bn by 2024:
Global Market Insights, Inc.,” https://www.globenewswire.com/newsrelease/2018/12/03/1660531/0/en/Usage-based-Insurance-Market-to-hit-107bn-by2024-Global-Market-Insights-Inc.html© 2019-2021 MOBI — VID Business White Paper

14

MOBI VID Standards
governance models will allow asset owners to dynamicallyreconfigure usage rights without third party oversight. However,a new array of third party service providers and its associatedecosystem will become enabled for access to routine
maintenance and cleaning needs as they arise.
MOBI VID supports a newgeneration of connectedmobility services which are
increasingly decentralizedwith transactions executed
locally at the edge and which
require new tools for trust,cooperation, and coordination.

A striking feature of these new mobility services is theconvergence of technology and strategic interest fromtelecoms, insurers, energy generators, utilities, smart cities, techcompanies, cloud providers, transportation network companies,
infrastructure owners, and, of course, legacy players in themobility value chain such as suppliers, manufacturers, andtransit agencies. The new services require a level of cooperationand coordination between these industries that isunprecedented because each will need the sub-services of theothers. For example, transportation network companies willneed insurers for competitive UBI policies, UBI relies on OEM
vehicle telematics, telematics relies on telecom carriers, etc.
Figure 3 on pages 17 and 18 illustrates this convergence forstakeholders and use cases in the New Economy of Movement
enabled by the MOBI VID.

Additional MOBI standards,
created by other MOBI
Working Groups, build on the
VID to support additional
emerging mobility businesses.

15“Coopetition,” the mixture of cooperation and competition,needed to succeed in future mobility services is a hallmark of
DLT business ecosystems that enable diverse industries andstakeholders to share core data, services, business processes,
methodologies, and standards. To this end, additional MOBI
working groups are creating DLT/blockchain-based standards
for Insurance, Data Exchange, Electric Vehicle Grid Integration,
Supply Chain, and Finance and Securitization. Additional
working groups are planned for the near future.

© 2019-2021 MOBI — VID Business White Paper

MOBI VID Standards
DIGITAL VEHICLEUSE CASES

SALE &REGISTRATIONVEHICLEFINANCEPARTS & RECALLS /MAINTENANCE& ACCIDENTS

ALERTS &MESSAGINGODOMETER &TRUSTED TRIP

FLEET
MGMT

VEHICLE WALLET& PAYMENT

CO2 FOOTPRINTETHICAL
SOURCING

ROAD USAGE
CHARGE (RUC)

USAGE-BASED
INS./MOBILITY

P2P
MOBILITY

LOGISTICS /DELIVERYSERVICES

V2X
NEGOTIATIONPARTS
SUPPLIERSOEMSDEALERSFINANCIALSERVICES
VEHICLEREGISTRIESOWNERS /RENTERSFLEETSINFRASTRUCTUREOWNERS

INSURERSMOBILITY SER.
PROVIDERS (TNC)

SHIPPERSTELECOMS

Figure 3 — MOBI VID Stakeholder Use Case Matrix

17© 2019-2021 MOBI — VID Business White Paper© 2019-2021 MOBI — VID Business White Paper

18

MOBI VID Standards
Data Provenance
MOBI VID supportsmonetization of the massive
bi-directional data flows fromconnected vehicles.

Autonomous Economic Agents
A connected vehicle is projected to upload twenty-five10
gigabytes of data per hour, according to McKinsey’s research.
There is a cost to basing business decisions on erroneous data,
as well as data visibility gaps. On average, across the board,poor data quality amounted to 15 million USD annual financial
11
costs in 2019. Provenance, or proof of origin, of vehicle data isessential to coordinate multimodal mobility, share vehicles, andpay for infrastructure use. Direct business cases include fraud
prevention, data quality for data science (garbage in, garbageout), and Advanced Driver-Assistance Systems (ADAS). Indirectbusiness cases include secondary data markets. McKinsey
predicted that the entire market for monetizing vehicle data
12
could be worth as much as 750 billion USD by 2030. Thirty-two
of forty-four car brands currently offer some form of vehicle-tovehicle (V2V) communication devices in their vehicles,
illustrating that data collection is already commonplace for the
automotive industry. DLT-enabled vehicle identities can validate
requests and ensure there is trust in the communications
between vehicles.
With the importance of data, data accuracy, provenance,
integrity, and security, the MOBI Connected Mobility Data
Marketplace Working Group launched in October 2019 to ensurecollaboration and standardization for connected networks.
10. “What is Driving the Connected Car,” McKinsey & Company, September 1, 2014,
https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/whatsdriving-the-connected-car
11. Susan Moore, “How to Stop Data Quality Undermining Your Business,” Gartner, January
18, 2019, https://www.gartner.com/smarterwithgartner/how-to-stop-data-qualityundermining-your-business/
12. Jeff Plungis, “Who Owns the Data Your Car Collects,” Consumer Reports, May 2, 2018,https://www.consumerreports.org/automotive-technology/who-owns-the-data-yourcar-collects/

19© 2019-2021 MOBI — VID Business White Paper

Embedded profit functions
and MOBI VID turn connectedvehicles into autonomous
economic agents,
revolutionizing the provisionof mobility services,
optimizing road use, andcreating new usage basedsources of finance for public
infrastructure.

MOBI VID enables
coordination between
increasingly autonomousvehicles that enhances safety
and efficiency beyond what is
possible without sharing data
about intention, condition andlocation.

The combination of MOBI VID, trusted location, and the ability toaccept and conduct payments will ultimately transform vehicles
into autonomous economic agents. These vehicles will haveembedded vehicle wallets to store their DIDs, other credentials,
permissions, and means of payment. The means of payment forthese wallets will not be cash or traditional bank transactions ashigh frictional costs will be prohibitive. Instead, V2X payments
will utilize a programmable digital currency of the type now
being developed by both private sector DLT/blockchain protocolcompanies (e.g. Ether and Tether) and central banks (e.g. digital
Euro and digital Yuan). Vehicles will use these capabilities totransact with other vehicles and infrastructure, and tocoordinate services in shared and multimodal environments. They
will be able to autonomously maximize profits for services anddata offered, and minimize costs for resources, services, anddata they consume.
With the arrival of autonomous driving, vehicles will share theirintended movements, in real time, in local ad hoc networks at
the edge. Coordinating movement utilizing vehicle DIDs will
deliver huge gains in efficiency and safety. Dynamic platooning
allows highway trucks to draft closer. Sharing situationalawareness of obstacles and threats permits urban vehicles tominimize their infrastructure footprint. It allows them tocollectively plan paths and maneuvers that avoid collisions or
conflicts. This interoperability permits higher speed, efficiency,
and coordinated actions which are impossible without advanceknowledge of all the local vehicle actions. Coordinatedautonomy has the potential to significantly increase throughput
on a given road footprint.

© 2019-2021 MOBI — VID Business White Paper

20

MOBI VID Standards
Conclusion
Blockchain mobility is
attracting powerful new
entrants from adjacentindustries. Startups haveraised hundreds of millions ofdollars in VC funding.
Blockchain mobility will
exhibit strong network
economics with late entrants
facing high barriers.

New mobility businesses built
in VID span value chains fromsustainable resource
extraction to end-of-life
disposal, from vehicle
manufacture to end user
mobility services, frominsurance to telecoms, andfrom privately owned vehicles
to public infrastructure.

The transportation ecosystem is evolving rapidly with technology
companies entering the race for mobility services, rideshare,
and connected and autonomous vehicles. To stay competitive,
existing ecosystem stakeholders are actively looking forinnovative solutions to accelerate their digital transformation to
improve efficiency and security, all while elevating the customer
experience and reducing environmental impacts.

A “New Economy ofMovement” will be built on the
VID and related DLT standards
by competitors who recognizethat new mobility
opportunities require
collaboration to create
infrastructure for an emerging
decentralized mobility
ecosystem.

Blockchain and DLT have the potential to accelerate thesetransformations through supply chain efficiency, trace and track,vehicle data integrity and provenance, secure autonomous
economic transactions, streamlined mobility as a service(MaaS), coordinated multimodal transit, marginal cost pricing
for infrastructure, usage-based mobility/insurance, and muchmore. At the heart of all this is a decentralized vehicle identity.
The MOBI VID will enable exciting new use cases for thetransportation ecosystem beyond what is possible with existing
technologies.
MOBI VID business cases for better mobility span fleet
operations, sale of vehicles, mobility services, ecosystemservices (i.e. insurance, predictive maintenance), data markets,
smart cities, traffic management, and more. MOBI VID alsoenables optimization of supply chain elements such assustainable and ethical sourcing, liability and accountability forrecalls, supply chain transparency, fraud prevention, and data
analytics with new insights into parts and systems performance.

infrastructure and each other, smart cities are without goodtools to manage mobility, and marginal cost pricing for road use,congestion, and pollution is not possible. In short, a new kind ofvehicle identifier is needed for connected, smart vehicles toallow them to join and transact within multiple dynamic edge
ecosystems while roaming. Decentralized Identifiers like MOBI
VID are designed to enable interactions of connected vehicles,
without reliance on centralized registries or certificate
authorities, within multi-party, multi-use mobility services in the
New Economy of Movement.
For the MOBI VID to be useful, a certain scale is needed. We
call this the “minimum viable ecosystem,” the point where
DLT/blockchain applications begin to exhibit increasing returns.
As is the case with most new and revolutionary technologies,
scale is the hard problem, not the technology itself. While theWeb 2.0 model revolved around platform plays, the emerging
Web 3.0 model revolves around infrastructure plays within aminimum viable community. This is the raison d’etre for MOBI.

MOBI VID on a shared digitalledger is a foundational step
towards a greener, safer, andmore efficient mobility future.

The MOBI VID, trusted and used at scale, will unlock a newtransaction economy for consumers, businesses, vehicles, andinfrastructure, turning mobility products into services while
digitizing much of the transportation experience. Shared ledger
technology for vehicle identities is a crucial building block forthese new mobility ecosystems. MOBI VID Standards accelerateindustry adoption and power future mobility ecosystems that are
faster, more efficient, secure, affordable, and greener thanpossible today.

Trusted identity is essential for vehicle communication. Without atrusted identity, electric vehicles cannot communicate with thegrid, autonomous vehicles cannot communicate with

21

© 2019-2021 MOBI — VID Business White Paper© 2019-2021 MOBI — VID Business White Paper

22

Bibliography
Accenture. “Mobility as a Service.” Accessed June 18, 2019.
https://www.accenture.com/_acnmedia/PDF-71/Accenture-Mobility-Service.pdf.
European Parliament. “Research for TRAN Committee - Odometer Tampering: Measures toPrevent It.” Accessed July 15, 2019.
https://www.europarl.europa.eu/RegData/etudes/STUD/2017/602012/IPOL_STU(2017)602012_EN.pdf.
Global Market Insights. “Usage-based Insurance Market to hit $107bn by 2024: Global
Market Insights, Inc.” Last modified December 3, 2018.
https://www.globenewswire.com/news-release/2018/12/03/1660531/0/en/Usagebased-Insurance-Market-to-hit-107bn-by-2024-Global-Market-Insights-Inc.html.

Plungis, Jeff. “Who Owns the Data Your Car Collects.” Consumer Reports, May 2, 2018.
https://www.consumerreports.org/automotive-technology/who-owns-the-data-yourcar-collects/.
Schmahl, Andrew, Kaj Burchardi, Camille Egloff, Jacqueline Govers, Ted Chan, and Markos
Giakoumelos. “Resolving the Blockchain Paradox in Transportation & Logistics.” Boston
Consulting Group. Last modified January 29, 2019. https://www.bcg.com/engb/publications/2019/resolving-blockchain-paradox-transportation-logistics.aspx.
“Takata Airbag Recall Effect on Used Pricing,” Auto Remarketing, April 3, 2015.
https://www.autoremarketing.com/trends/takata-airbag-recall-effect-on-usedpricing.

Jibrell, Anisa. “Automotive Recall Bill Grew 26% to $22billion in 2016, Study Says.”
Automotive News, January 30, 2018.
https://www.autonews.com/article/20180130/RETAIL05/180139974/auto-recall-billgrew-26-to-22-billion-in-2016-study-says.
McKinsey & Company. “What is Driving the Connected Car.” Last modified September 1,
2014. https://www.mckinsey.com/industries/automotive-and-assembly/ourinsights/whats-driving-the-connected-car.
Moore, Susan. “How to Stop Data Quality Undermining Your Business.” Gartner, January 18,
2019. https://www.gartner.com/smarterwithgartner/how-to-stop-data-qualityundermining-your-business/.
National Highway Traffic Safety Administration. “Odometer Fraud.” Accessed June 18, 2019.
https://www.nhtsa.gov/equipment/odometer-fraud.
Paul Gao, Van, Hans-Werner Kaas, Detlev Mohr, and Dominik Wee.“Automotive Revolution –Perspective Towards 2030.” McKinsey & Company. Last modified January 2016.
https://www.mckinsey.com/industries/automotive-and-assembly/ourinsights/disruptive-trends-that-will-transform-the-auto-industry/de-de.

23© 2019-2021 MOBI — VID Business White Paper© 2019-2021 MOBI — VID Business White Paper

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MOBI is a nonprofit industry consortium of many of the world’s largest vehicle manufacturers,
along with many startups, NGOs, transit agencies, insurers, toll road providers, smart city
leaders, and technology companies working to accelerate adoption and promote standards inblockchain, distributed ledgers, and related technologies.
MOBI is creating simple blockchain-based standards to identify vehicles, people, andbusinesses in order to securely exchange and monetize data, and pay for mobility services,with the goal of making transportation more efficient, affordable, greener, safer, and lesscongested. MOBI itself is technology and ledger agnostic. For additional information about or
joining MOBI, please visit our website.

dlt.MOBI@dltMOBI

MOBI@dltMOBI

vid@dlt.MOBI

VID business uses span arange of time horizons andvalue.

Data Provenance — The trust anchor enables V2X
transactions and data exchange locally at the edge

DLT-based
Vehicle Wallet

V2X
Communication

Immutable
Maintenance &Recall Records

Connected Mobility
Data Marketplace
Odometer Fraud
Prevention
Usage-based
Ins./Transportation
Services

MOBI VID
Electric Vehicle
Grid Integration

Carbon Footprint
Mgmt

Road Usage
Charge (RUC)
Congestion
Mgmt

Transportation use cases enabled by the MOBI VID benefit fromfour broad features of DLT networks. Each of these features
influences the opportunity scale and time horizon of the various
use cases. These features are listed below and are plottedagainst time horizon and scale in Figure 2 on page 6:

Asset Visibility — Improved asset visibility reduces
information asymmetries and frictional costs across theentire transportation services value chain
5© 2019-2021 MOBI — VID Business White Paper

This paper explores these four features of DLT networks in moredetail below, with particular emphasis on the more immediatearea of Asset Visibility. The unique peer to peer (P2P) nature of
DLTs requires collaboration, standards adoption, and network
implementations in order to create impactful outcomes for the
ecosystem. While early, it is already clear that DLT-based
vehicle identity can bring enormous value to the transportation
ecosystem.

Smart Parking
Mgmt

Figure 1 — MOBI VID Use Cases for the New Economy of Movement

Increased asset visibility, antrust anchor for vehicle
services, data provenance,
and autonomous vehicletransactions are some of the
MOBI VID benefits.

Autonomous Economic Agents — Trusted data, trips, andtransactions generated at the edge, along with embedded
profit functions, turns connected vehicles into autonomous
economic agents in the New Economy of Movement

Expected Implementation Horizon

VehicleFinance

Digital Vehicle
Registration

Anchor for Additional Services — MOBI VID creates thetrust anchor for the next generation of connected mobility
services which are increasingly decentralized

Autonomous
Economic Agents
Anchor for Additional
Services
Data Provenance

Asset Visibility
Opportunity Scale

Figure 2 — MOBI VID Value Services for Time Horizon and Scale© 2019-2021 MOBI — VID Business White Paper

6

MOBI VID Standards
DIGITAL VEHICLEUSE CASES

SALE &REGISTRATIONVEHICLEFINANCEPARTS & RECALLS /MAINTENANCE& ACCIDENTS

ALERTS &MESSAGINGODOMETER &TRUSTED TRIP

FLEET
MGMT

VEHICLE WALLET& PAYMENT

CO2 FOOTPRINTETHICAL
SOURCING

ROAD USAGE
CHARGE (RUC)

USAGE-BASED
INS./MOBILITY

P2P
MOBILITY

LOGISTICS /DELIVERYSERVICES

V2X
NEGOTIATIONPARTS
SUPPLIERSOEMSDEALERSFINANCIALSERVICES
VEHICLEREGISTRIESOWNERS /RENTERSFLEETSINFRASTRUCTUREOWNERS

INSURERSMOBILITY SER.
PROVIDERS (TNC)

SHIPPERSTELECOMS

Figure 3 — MOBI VID Stakeholder Use Case Matrix

17© 2019-2021 MOBI — VID Business White Paper© 2019-2021 MOBI — VID Business White Paper

18

MOBI VID Standards
Autonomous Economic Agents

DIGITAL VEHICLE SERVICES
OEMs

OwnersAlerts &Messaging

Drivers

Manufacture& Vehicle
WalletVehicleCoordination

P2P Mobility

Registries

Sales /
Registration

Dealers

Renters
Rentals

Maintenance

VID

Embedded profit functions
and VID turn connectedvehicles into autonomous
economic agents,
revolutionizing the provisionof mobility services,
optimizing road use, andcreating new usage basedsources of finance for public
infrastructure.

The combination of VID and the ability to accept and conduct
payments will transform vehicles into autonomous economic
agents, with far-reaching benefits. V2V transactions include
negotiating right of way or platooning. V2I transactions include
electric vehicles to grid payments or toll-roads. EVs can not only
connect to charging stations by validating their identity but also
pay for the charging. Vehicles can request and receive
payments for their usage in shared environments. One adoption
contingency is wallet adoption speed. Some industry players are
already providing wallets in smartphones such as Samsung.
Exploring use cases like tokenized carbon credits, vehicle to grid
storage, and other ancillary services, the MOBI Electric Vehicle
Grid Integration (EVGI) Working Group launched in Q2 2019 willaddress standardization in driving this ecosystem forward.
Figure 3 on page 15 illustrates how different stakeholders are
involved in the VID use cases.

Lenders

Insurers/
Providers
Logistics
Usage-based
Insurance /Mobility

Loans

Carriers

Vendors

Rides

Ride Shares

Fleet
Mgmt

Parts
Traceability

FleetsFigure 3: VID Use Case Map for Stakeholders

15© 2019 MOBI — VID Business White Paper© 2019 MOBI — VID Business White Paper

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