Building the
New Economy of Movement

JANUARY 2021

VEHICLE IDENTITY II

USE CASES AND BUSINESS REQUIREMENTS

Use Cases
Vehicle Registration and Maintenance
MOBI VID0003/UC/2021
Version 1.2

AuthorRajat Rajbhandari, PhD, MOBI

Reviewers

INTRODUCTION
MOBI Vehicle Identity Working Group is a global and multistakeholder project working to co-design blockchain- anddistributed ledger technologies-based standards forconnected mobility ecosystems. The project engages
stakeholders across the mobility value chain, including
original equipment manufacturers, mobility industry service
providers, technology companies, governmental and nongovernmental entities. This report is based on numerous
discussions, workshops, and research. Opinions expressedherein do not necessarily reflect the views of individual
members.
Sincere thanks are extended to those who contributed theirunique insights to this report.

Alan Gordon, Ford
Johannes Klepsch, BMW
Christian Koebel, Honda
Robin Pilling, MOBI
Johannes Sedlmeir, FIM Research Center

VID II Working Group Co-Chairs
Alan Gordon, Ford
Johannes Klepsch, BMW

VID II Working Group Team Members
Daniel Bachenheimer, Accenture
Sebastian Banescu, Quantstamp
Joe Bannon, KAR Auction Services
Manuel Bolsinger, BMW
Randy Cole, Ownum
Aaron Fong, Honda
Todd Gehrke, Luxoft
Dante Giancola, Ownum
Sebastien Henot, Accenture
Divyesh Jadav, IBM
Sumita Jonak, USAA

Sanjay Khunger, Ford
Will Maney, USAA
Piyush Manocha, Accenture
Jim Mason, DMX
Lukas Mueller, BMW
Hans Otten, Autodata Solutions
Dean Phillips, AWS
Boris Polania, Honda
Klaus Roehm, Bosch
Angela Ruthenberg, Autodata Solutions
Ryan Tabibian, CarIQ

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

Joe Bannon, Director of Partnerships
Annabelle Sbarbatti, Fellow
Matt Shi, Fellow
Kelly Clark, Communications Manager

01

Executive Summary

03

Purpose of VID I Standard

05

Purpose of VID II Standard

07

Leveraging DLT/Blockchain

09

Value Services

11

VID II Use Cases
Use Case 1 — Vehicle Registration
Use Case 2 — Maintenance Traceability

17

Other Use Cases Considered
Parts Replacement Traceability
Machine to Machine Payments
Accident Traceability
Insurance
Ownership and Titling
Inspections
Odometer Fraud Prevention
End of Life

25

VID II - Use Case 1 — Vehicle Registration
Objectives and Key Pain Points
Stakeholders and their Current Needs
Registration of the Future
Stakeholders’ Future Needs
Business Requirements

33

VID II - Use Case 2 — Maintenance Traceability
Objectives and Key Pain Points
Stakeholders and their Current Needs
Vehicle Maintenance of the Future
Stakeholders’ Future Needs
Business Requirements

38

Bibliography

TABLE OFCONTENTSExecutive
Summary

Vehicle identity compatible
with digital ledger andblockchain technology is a
crucial building block forinnovation in future mobility
ecosystems.

Blockchain and distributed ledger technologies (DLT) enable thedigital transformation of the mobility industry. The foundation of
all DLT and blockchain-based activity is the compatible vehicle
identity. Using shared ledger technologies for vehicle identities
is a crucial building block for new mobility, transportation andInternet of Things (IoT) ecosystems of the future. These
ecosystems will disrupt the automotive and mobility sectors
while changing the way business is conducted. Vehicle Identity(VID) is a tool that enables these ecosystems. VID supports
dynamically defined multi-stakeholder, interoperable, mobility
ecosystems, yielding increased transparency, coordination, andautomation between the stakeholders. While the VID I standard
focused on standardizing data related to the birth of thevehicle and created the Vehicle Birth Certificate (VBC), VID II
extends that to data related to lifetime events and transfer ofownership.

MOBI VID applications span
across vertical industry use
cases, with vehicle
registration and maintenancetraceability being mostimmediate.

DLT/Blockchain use cases that depend on a secure digitalvehicle identity span from vehicle payments, supply chain andautomotive financing to autonomous vehicle data marketplaces
and many more. This document introduces a business review for
the VID II use cases to accompany the technical standards
created by the group. It describes current practices, key pain
points, and stakeholder needs. The vehicle identity working
group decided to focus on two use cases - vehicle registrationand maintenance traceability.

© 2021 MOBI — VID II Use Cases and Business Requirements2Vehicle identity leverages
traditional vehicle
identification numbers andverifiable credentials on
immutable ledger across thevehicle and service network.

In July 2019, MO released a business white paper and atechnical specifications as VID I standards. It consisted of adecentralized identifier (DID) tied with the vehicle’s vehicle
identity number (VIN) as an identifier at birth. VID can be used
to identify the manufacturer of the vehicle, model, type, andyear of manufacturer. VID augments and elevates the use of
the current VIN, in the following areas:
The vehicle receives a globally universal and immutable
identifier that is compatible with implementing use cases onblockchain for which vanity identifiers do not scale.

PURPOSE of
VID I STANDARD

The VID is globally identifiable across multiple entities, inorder to participate in a multi-party network to create use
cases such as parts provenance.
Since VID follows the World Wide Web Consortium standard(W3C), it is machine readable and therefore usable acrossmultiple blockchain platforms.

While the VID of a vehicle doesn’t change, its attributeschange over time.
A trusted ledger that verifies
vehicle attributes is a criticalpiece for the industry
adoption of vehicle identities.

3

Without a wide adoption of VID, the industry cannot scale
implementations to reduce or remove the pain points in use
cases described in subsequent sections. It is imperative that the
VID can be created by anybody without a need forsophisticated application and then associate attributes about
the vehicle. At the same time, those attributes must be
verifiable since confidential information is not stored in the DID
associated with the VID. This standard and VID II do not define
who should provide the verification and play the role of theverifiable data registry and is beyond the scope. Perhaps, there
will be a different standard to operate as a verifiable dataregistry. At minimum, the registry will leverage a decentralized
public ledger to store VIDs in order to provide proof of thevehicle’s existence in the network.

© 2021 MOBI — VID II Use Cases and Business Requirements

At minimum, the registry
will leverage adecentralized public
ledger to store VIDs inorder to provide proof ofthe vehicle’s existencein the network.

© 2021 MOBI — VID II Use Cases and Business Requirements

4Vehicle’s digital identity
begins with a vehicle birthcertificate, which is a subset
of a vehicle’s overall identity.

VID compatible with DLT/Blockchain technology will usher ininnovative use cases as well as improve existing ones. Most
importantly, VID allows cross-company collaboration to solve
specific industry problems that remained difficult to address
before the existence of blockchain technology. The foundation
and requirement of use cases is an interoperable vehicle
identity which leverages DLT/Blockchain technologies,DIDs, andVerifiable Credentials (VCs) for vehicle identities. The VBC
envisioned in VID I is a data structure of strings and integers
that records information about a particular vehicle at its
creation.
Since a digital vehicle’s life cycle begins with the VBC and it
represents a subset of the vehicle’s overall digital identity alongwith individual parts it contains, the working group decided tomake a strategic shift.

PURPOSE of
VID II STANDARD

Focusing on leading vehicle
identity use cases, the VID-2
standard is a logicalextension of the vehicle birthcertificate.

In this phase of VID development the team focused on
deployment of the VBC and this new digital vehicle identity fora variety of use cases leveraging blockchain.
VID II standard is divided into two deliverables:
MOBI VID0002/UC/2021 - Describes vehicle identity use
cases prioritized by the working group members, maps
stakeholders needs, and identifies high level requirements.
MOBI VID0004/RI/2021 - Describes reference architecture
and technical specification to meet the requirements.
MOBI and the working group intend to add more use cases infuture versions of both documents.

LEVERAGING
DLT/BLOCKCHAIN
Blockchain technology has ushered in the concept of“coopetition” in which competing entities collaborate to alleviatecommon business problems by building a network operated bymutually agreeable common protocol, workflow, and data
standards. Trust is outsourced to a decentralized ledger that
operates within the boundaries defined by the network
participants instead of a siloed enterprise infrastructure.
Transactions are pushed to a decentralized ledger using
cryptographically secure and fault tolerant consensus
mechanisms. Augmented by off-n and on-chain governance,competing entities are thus assured that the ledger is immutable.

Standardized vehicle identity
beyond VIN is necessary toutilize the DLT/Blockchain as
a ledger to register events
related to vehicle’s
registration, maintenance,
parts traceability, and more.

The ledger continuously records the state of assets as a streamof incoming transactions. The network autonomously agrees on
the state of transactions added to the ledger.

Beyond the VID standard, acommunity owned andmanaged mobility network isneeded for stakeholders toshare confidential
information with each other.

Once the companies have agreed upon the state of ledger,
they can actively participate in applications built for specificuse cases. Original Equipment Manufacturers (OEMs) can sharesupplier’s reputations, threat intelligence, provenance of parts,
etc. without disclosing confidential information to other entities.
For the entities to agree on the state of the ledger, they firsthave to agree on how assets are assigned an identity before
their state is added to the ledger as transactions.

Due to antitrust laws, these competing companies are notallowed to see the details of each other’s transactions. Hence,the details of these transactions are stored off chain andviewable only by the entities with appropriate permissions. The
off-chain storage does have a way to link the asset detail totransaction in the ledger.

MOBI and the working group members anticipate that the use
cases mentioned in subsequent sections will be developed using
some flavor of vehicle identity.

© 2021 MOBI — VID II Use Cases and Business Requirements

8

VALUE SERVICES
The MOBI VID unlocks a rangeof new services including
asset visibility, data
provenance and autonomous
economic agents.

The MOBI VID will unlock a range of new services labeled here
as “Value Services,” which are as following:
Asset Visibility

The intent of MOBI VID is not
to replace VIN, but toaugment it with digital
certificates anchored to
DLT/Blockchain technology.

Anchor for Additional Services
Data Provenance
Autonomous Economic Agents

Asset visibility allows provenance of vehicles and their safety
components when they change “hands.” The vehicles
provenance is recorded from the time a vehicle leaves a factory
floor to when it is transported by multiple entities, to the time itreaches a dealer and sold to an owner. Current VIN-based
vehicle identity provided by third parties is inadequate andincompatible with developing multi-party collaborative systems
on a decentralized network. Assets in decentralized networks
are identified with a set of keys and addresses and not with a
VIN. These types of assets, however, can be associated with the
VID. Being able to build asset visibility on collaborative multiparty systems unlocks many innovative use cases such as
immutable odometer readings, maintenance statuses
accessible to multiple parties, cross-border registrations, andmore.
9© 2021 MOBI — VID II Use Cases and Business Requirements

While the main benefit for “asset visibility” is transparency, theother benefit is coordination. The MOBI VID will function as ananchor for additional services, using it to track, add to an asset,
and enable transactions involving the asset—specifically,reflecting “real status,” setting permission levels, accepting
payments, and adding business logic. In new mobility
ecosystems this level of coordination is paramount.
Universal identification of vehicles and key components allow
data about a vehicle to be compatible with systems everywhereregardless of language, and jurisdictions. VID adopted acrossthe industry will also allow vehicles to interact with othervehicles (V2V), infrastructure (V2I) and eventually, vehicle-toeverything (V2X) environments.

The VID standard enables
vehicles to autonomouslytransact with other entities ina shared mobility ecosystem.

The combination of VID and the ability to accept and conduct
payments will transform vehicles into autonomous economic
agents with far-reaching consequences. V2V transactions
include negotiating right-of-way or platooning. V2I transactions
include electric vehicles to grid payments and toll-roads.
Vehicles can request and receive payments for their usage inshared and autonomous environments and much more.

© 2021 MOBI — VID II Use Cases and Business Requirements

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VEHICLE IDENTITY II
USE CASES
The use cases for which business requirements and reference
implementations are described leverage distributed ledger andblockchain technologies to achieve innovation and efficiency
gains in vehicle registration and maintenance traceability. It is
assumed that such systems use DLT/Blockchain infrastructure(including appropriate governance) as a root of trust for all
stakeholders. Figure 1 below illustrates how at a high level bothuse cases apply DLT/Blockchain as a trust anchor.
The VID II working group recommends two use cases as astarting point - vehicle registration and maintenancetraceability.

OEM

Register
Vehicle BirthCertification

DealerState of
Maintenance/
Registration

Registration
Authority

Register
VehicleCredentials

Vehicle Owner,
In-Vehicle
WalletState of
MaintenanceWorkshop,Insurance

State ofRegistration

DLT/Blockchain Infrastructure
Figure 1 — Illustration of use of DLT/Blockchain infrastructure as a root of trust for stakeholders in vehicle
registration and maintenance use cases.

Vehicle Identity II Use Cases
create national vehicle registries (similar to the National Motor
Vehicle Title Information System or NMVTIS in the US) to not
only approve or reject registration requests, but also to provide
1
consumers with a more reliable vehicle history.

Use Case 1 — Vehicle Registration
The VID working group
recommended two use cases- vehicle registration andmaintenance traceability withlimited scope described later.

At minimum, the vehicle
registration use caseinvolves the identity of thevehicle, current owner, andthe past owner.

Vehicle registration connects new and used vehicles to a personor entity. Registration does not necessarily establish theownership of the vehicle, which is accomplished through thetitling process. Both titling and registration are established andregulated by laws of a jurisdictional government entity. In the
United States (US), each state’s department of motor vehicles
registers a vehicle to a person or entity. In the European Union(EU), member countries and states or provinces maintain theregistration. By registering, a vehicle receives a license plate(authority) in order to operate e on public roadways. For the
purposes of this document, we will assume the title holder(owner) of the vehicle and the name under whom the vehicle isregistered and operated are the same.
The owner or operator of the vehicle has to carry a paper
document (i.e., the vehicle registration) at all times. Whenassociating a vehicle with an owner or operator through theregistration and titling process, the government entity connects
the vehicle's identity (VIN number) to a person’s, or other entity’s
identity (i.e., date of birth, address, national identity). The
registration is then used by third-party service providers such as
insurance, taxation authorities, maintenance vendors, tolling
agencies, law enforcement agencies, etc., for their own
purposes.
When the owner of the vehicle moves (triggered by addresschange or number of days domiciled in the jurisdiction) to adifferent jurisdiction or when the vehicle is sold to anotherowner in a different jurisdiction then the vehicle must receive a
new registration. In order to make this process as seamless as
possible, many EU member states and provinces have beenworking for the past several years to integrate their systems,

13© 2021 MOBI — VID II Use Cases and Business Requirements

The Vehicle Identity isdesigned to be globallyunique which allows multiple
agencies to have visibility ofa vehicle’s change ofownership and registration
across jurisdictions.

Where national vehicle registries are not available or where
there are no national mandates to create one, it is incumbent
upon the states or provinces to allocate resources and initiate
2integrations with other states and provinces. To fill this void,
numerous commercial entities exist that harvest data frommultiple sources such as insurance companies, state andprovincial entities and dealerships to provide the vehicle history
to consumers.
The objective of this use case is to verify registration of avehicle using VID as a global identifier without integrating withregistration authorities. A VID that is compatible withblockchain technology can be a catalyst to virtually connect
silos of vehicle registration systems between states or provincesin different countries.

1. “Understanding an NMVTIS Vehicle History Report,” US Department of Justice, Office ofJustice Programs, https://vehiclehistory.bja.ojp.gov/nmvtis_understandingvhr, Accessed
September 10, 2020.
2. “REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL - simplifying thetransfer of motor vehicles registered in another Member State within the Single Market,”
European Commission, Brussels, April 04, 2012.

© 2021 MOBI — VID II Use Cases and Business Requirements

14

Vehicle Identity II Use Cases
Use Case 2 — Maintenance Traceability
The Vehicle Identity would
also be a part of themaintenance process at
dealerships and repair
workshops allowing owners
to verify services performed
and the provenance of parts
replaced or repaired in theprocess.

The maintenance traceability
use case at minimum involves
the identity of the vehicle,
the repair service provider,and the vehicle owner.

The global automotive repair and maintenance service market isestimated to reach USD 810.30 Billion by 2026, according to a3
new report by Reports and Data. The North America region is
projected to grow at a rate of 5.8% during the forecast periodwith the largest share of 32.50% in 2018. Moreover, an increasein sales of used cars in many regions, especially in emerging
economies, as well as technological advancements pertaining
to vehicle safety, are also fueling market growth. Based on
statistics, increase in average age of vehicle due totechnological advancements and the average miles driven per
vehicle are also significant factors stimulating market growth.
The objective of this use case is for the stakeholder to verify if avehicle has received service(s) from one or more repair service
provider(s) during its life cycle and more easily obtain reliable
maintenance records. In the future, the working group will
include the stakeholder’s ability to verify and trace parts
replaced or repaired during the maintenance or repair process.
The successful implementation of the use case will allow the
stakeholders to verify if factory or other recommended
maintenance was performed, if the proper parts were used, at
the work performed by certified repair centers, etc. Suchtraceability will provide the stakeholders the ability to assess
warranty claims, establish accurate resale value, quantify
insurance claims risks, and verify emissions and other required
inspections. This will also allow virtual consolidation of
information silos across a range of stakeholders interested in a
vehicle.
3. “Automotive Repair & Maintenance Service Market By Parts (Tires, Wear and tear parts,
Collision body, Batteries, Others), By Applications, By Technology (Microcomputers,
Aluminum, Wi-Fi), By Service type And Segment Forecasts,” 2016-2026, Reports andData, https://www.reportsanddata.com/report-detail/automotive-repair-andmaintenance-service-market, Accessed December 16, 2020.

© 2021 MOBI — VID II Use Cases and Business Requirements

16

OTHERUSE CASESCONSIDERED
MOBI VID II working group members consideredseveral use cases and each one of them will
create value services. These use cases included
a broad range of pain points that the industry,
regulatory agencies, service providers, and theconsumers face, as shown in Figure 2.
The working group will develop business
requirements and reference implementation forother use cases moving forward.

VehicleRegistration
End of Life
Ownership
and Titling
Odometer Fraud
Prevention

Inspection

Insurance

MOBI
VID

Accident
Traceability

Maintenance
Verification

Parts
Traceability

Machine to
MachinePayment

Figure 2 — DLT/Blockchain compatible globally unique vehicle identity allows innovation andefficiency gains in a variety of use cases concerning vehicles.

Parts Replacement
Traceability
The VID is the foundation fora digital car pass which may
contain verified part
replacement connected to
the vehicle identity.

Parts replacement is part of maintenance and repair services.
Parts are replaced to repair damage or as part of ongoing
maintenance when they wear out (e.g., batteries, brakes, tires,etc.) It is possible that the vehicle’s owner, repair shop or service
provider may use non-standard parts or perform unintended
mechanical changes to the vehicle or important componentsthat were not intended by the parts provider or OEM. For thesereasons and more, visibility into parts replacement and service
maintenance is necessary for the following reasons:Without a digital vehicle
identity, vehicle-based
wallets will not function tofacilitate vehicle to vehicle
and vehicle to infrastructure
payments.

Machine-to-machine payment is becoming more feasible thanever with electronic wallet applications and commitments from
OEMs to include wallets in new vehicles. With cryptocurrencies
and stable tokens gaining traction in the market,
micropayments to pay for services consumed by vehicles is areality. Vehicles can receive and transfer payments for repair
services, pay for tolls, buy information with V2V and V2I typeconnectivities, and much more. One of the key requirements ofvehicle-initiated payments is that the payee must verify who isreceiving the payment and if it has received such payment. In
that context, the identity of vehicles and associated wallets
becomes essential to complete such payment transactions.

If a vehicle is affected by a recall, the OEM will mail anotification to the last owner of record and indicate thevehicle and the affected parts being recalled.
If a vehicle has been modified in such a way as to void thewarranty provided by the OEM.
The installation of certain aftermarket parts will also not becovered under warranty or may have a significant impact ona vehicle’s resale value (e.g., certain features such as
aftermarket engine and performance equipment orsoftware, etc.
Mechanical breakdown insurance and extended warranties
may be an option for aftermarket warranty coverage, butthese too have restrictions for modifications or the inclusionof certain parts.

19© 2021 MOBI — VID II Use Cases and Business Requirements

Machine to Machine
Payments

Accident Traceability
Information about accidents
and maintenance activities
on vehicles are importantparameters to reduce buyerseller information asymmetry.

Two primary reasons why a vehicle loses value due to accidents
are: (1) the severity of the accident the vehicle was involved in is
usually unknown, and (2) the quality of repairs is unknown. It isdifficult to determine if the car has truly been returned to its
pre-accident state. Visibility into the accident history will not
only increase resale value, it will encourage owners to maintainvehicles properly, use OEM parts and authorized service
providers since not doing so will impact resale value. Suchvisibility will also allow dealerships, fleet owners, and used car
buyers to accurately assess a vehicle's value.
There is potentially a market for "sweetening lemons". If avehicle has been in an accident and that information is now
visible to the concerned stakeholders, there might be a way toclaw back some of that lost value, hence sweetening the lemon.
A dealer could certify that a vehicle has been properly fixedand is as good as new.

Insurance
The vehicle identity will allow
insurance providers toseamlessly verify
maintenance services
performed, parts replacedand serviced. It will provide
information on parts thatcame with the vehicle todirect owners to theappropriate workshop.

The insurance industry will greatly benefit from persistently
managed relationships between a vehicle identity andsubsequent parts identification. This will allow actuarial teams
new insights into pricing insurance policies given records oftypes and quality of parts replaced during the repair process.
Vehicle identification and digital registration held in vehicle
wallets will potentially allow insurance companies to issue
policies for shared vehicles and micro or usage-based
insurance payments instead of monthly policies. Having
accurate records for the entire lifecycle of a vehicle including
the manufacturing, vehicle sales, claims, repair andmaintenance will allow for much more individualized pricing per
vehicle without having to collect the data from an individual.

Ownershipand Titling

An immutable and chronological record of
a vehicle’s title data eliminates thepotential for title fraud, providing
assurance to the potential customer andthe state that the true value of the vehicle
can be ascertained. This use case isclosely tied to the vehicle registration
since in most jurisdictions vehicle
registration and titling are performed by
the same entity. In the US, most state
titling systems are paper-based andsiloed. Blockchain can provide a futureproofed, modern solution to these
problems by enabling states to securely
exchange data with one another, while
being assured that the potential for
fraudulent activity related to ownership,odometer and other title information has
been dramatically reduced or eliminated.
Vehicle registration augmented with digitalvehicle identity will enable easy on-line
verification of vehicle ownership.

23

Inspections

Blockchain technology combined withvehicle identity provides an immutable
record of inspections, shows the conditionof vehicles at repair shops and provides anaccurate and immutable record ofphysical and mechanical issues andrepairs over time. Proof of inspection
performed and whether the maintenancemet specifications and other metrics suchas paint thickness, and diagnostic or fault
codes can be verified by third parties.
Concerned stakeholders can easily verify required
emissions, safety, and other inspections
performed on vehicles.

Odometer reading is often used as apredictor of a vehicle's market value.
Mileage or odometer tampering has
always been a problem for the automotive
industry, especially when vehicles arebought and sold across international
needspacehere© 2021 MOBI — VID II Use Cases and Business Requirements

Odometer
Fraud
Prevention
borders.
Widespreadpracticeofodometer tampering creates a negative
impact on the used vehicle market. A
public ledger of mileage record tied withdigitalidentity
can
deter
such
malpractice.
Several companies such as BMW andBosch have developed applications toutilize blockchain to anchor odometerreadings. Even the European Parliament
agrees that blockchain technology may
represent another potential solution to be
applied to combat odometer tampering,allowing for a more transparent access toodometer figures and tackling two
sensitive issues: privacy of data andfrequency of data recordings.

End-of-Life
Traceability

Vehicle end of life traceability is key toensure that original parts (especiallysafety related) in the vehicle are properly
scrapped, recycled, or shelved. In that
context, it is important that parts
identification in the vehicle are logged assuch so that the IDs are not added tocounterfeit parts. With this use case,dealers and repair shops will be able toquery counterfeit parts and OEMs will beable to ensure they are not liable forunwarranted claims.
VID and parts traceability can improve safety by
reducing parts fraud at the end of vehicle life.

Odometer tampering is a significant deterrent inafter market and private sales of vehicles.
Mileage readings tied to VID anchored to open
immutable ledgers have potential to increase
trust in vehicles sold in used car markets.

© 2021 MOBI — VID II Use Cases and Business Requirements

24

VID II-UC1 — Vehicle Registration
Objectives and Key Pain Points
OEMs will create vehicle birthcertificates, which are thenpassed on to dealerships andowners during the purchaseand registration process.

Creating a more efficient virtual registry of registrations thattranscends jurisdictions using globally unique VID will reduce thecumbersome process of granting, denying, and cancelling
registrations across jurisdictions. Doing so will also reduce fraud
related to registration “cleaning” sometimes referred to as“title-washing” when vehicle registrations are transferred fromone jurisdiction to another to remove unwanted “brands” suchas salvage or flood damage that impact resale value. Such asystem will greatly reduce the cost to consumers to obtain thevehicle's history since the time it left the factory floor. These
VIDs would be provided by the OEM as a part of creating thevehicle birth certificate, which is passed on to dealerships andthen to vehicle owners.

The vehicle identity provides
a clean and transparent
history through the lifecycleof a car.

Buying and selling used vehicles is fraught with imbalance of
information between the buyer and the seller. Since a vehicle
with a 'clean' and transparent history holds more value than anequivalent vehicle without, sellers have incentives not todisclose information about defects, major repairs, recalls, etc.
Since a vehicle’s unique digital identity will be assigned as partof the birth certificate by the OEMs, such recalls and evenmajor repairs will be visible to the buyers down the line.
However, such a system must be conscious about the trade off
between attributes publicly shared and accessible and privacy
concerns of the vehicle owners. Alternatively, vehicle owners
can be incentivized to disclose their maintenance history so as
to increase resale value through such transparency.
It is important to note that this document and the subsequent
technical specification document does not consider thefollowing:
Replace or modify existing rules by the states and provinceswith regards to granting, denying, and cancellation ofregistrations.
Replace or modify how vehicle history is collected byinsurance companies, states and provinces.
Replace or modify definitions of vehicle history.

The objective of this use case review and the subsequent
technical specification document is for the stakeholders toenhance and augment the existing registration such that the
stakeholders can extract value propositions by leveraging
unique properties of blockchain.

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26

VID II-UC1 — Vehicle Registration
Stakeholders and Their Current Needs
Vehicle Owners

Consumers of this use case are individuals or companies that own andoperate vehicles. They may also be lessor or lessee of the vehicles. In
many countries, vehicles may be registered to individuals orcompanies that do not necessarily own the vehicles. They purchasenew or used vehicles. They may move to different jurisdictions where
they have to re-register the vehicles. They may purchase vehicles
already registered in a different jurisdiction. These events necessitate
the consumers to apply for registration, within a certain number ofdays, at their corresponding vehicle registration authority.
Consumers have to provide to a vehicle registration authority one ormore documents pertaining to proof of ownership of the vehicle,
environmental compliance certificate, odometer readings and VIN.
Registration requirements may be unique for different classificationsof vehicles such as commercial trucks, personal vehicles, for hire andrental passenger vehicles.

Fleet Owners

Commercial entities with private fleet, rental service owners, rideshare providers and drivers.

Vehicle registration
authorities (VRA)

The agency that regulates, and to some extent, that enforces local
and federal laws with regards to registration and titling of vehicles.
They register vehicles, issue license plates, revoke registration, andensure vehicles are compliant with local and federal safety andemissions regulations. VRAs also maintain titles or ownership
information of vehicles. VRAs maintain the history of VINs associatedwith owners along with vehicle history.

Insurance Companies

Insuring vehicles requires the registration to be up to date. Insurancecompanies have information about claims made on the vehicle duringcrashes, service maintenance and repair events, and claims of total
loss from theft, accident or natural disaster. Insurance companies also
keep track of odometer readings against the VIN and the owner.

27© 2021 MOBI — VID II Use Cases and Business Requirements

Dealerships

Buying a vehicle from a dealership usually means that they will handle
some of the registration process on behalf of the buyers. Dealerships
are often authorized by VRAs to transfer titles and issue temporary
registration to buyers until a permanent registration is obtained fromthe VRA. Dealerships also must keep a record of the assignment of
VIN to a buyer associated with the temporary registration and in somestates or provinces must comply with know-your-customer legislation
to prevent fraud.

Banks and Captive Finance
Companies

If a bank or captive finance company (a lender owned by an OEM,e.g, Toyota Financial Services, etc.) has a lien on, or leases a vehicle,
then its name will appear on the title. However, this does not affectthe registration of the vehicle. Banks however do keep track of thechange of title in the event the lien is removed after full payment or if
the vehicle is stolen, totaled in an accident or damaged beyond
repair in a natural disaster.

OEMs

Vehicle manufacturers assign VINs to vehicles according to Society ofAutomotive Engineers (SAE) standards (e.g., SAE - J272.). OEMs are
the initial owners of the vehicles after manufacture. The firstownership transfer occurs (for most vehicles) between the OEM and afranchised dealership which holds a contractual relationship with the
OEM permitting the sale of its vehicles.

Franchised Dealership andIndependent Service
Providers and Other Repair
Shops

These entities service vehicles at the request of the vehicle owners or,in the case of franchised dealerships, in accordance with required
maintenance intervals and warranty or recall repairs. In cases where
insurance is involved, then they submit detailed reports on the service
performed to the insurance company. In these transactions, VINs andowner or operator identification are used to identify and record theservices performed.

Rideshare Providers

These entities provide mobility-as-a-service without necessarily
owning vehicles as assets. They recruit vehicles owned by otherentities and individuals to provide mobility services, e.g., Uber andLyft. These entities must verify if a vehicle being offered for theservice is properly registered.

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VID II-UC1 — Vehicle Registration
Registration of the Future
Current verification of avehicle’s registration is amanual and cumbersome
process. With MOBI VID,
creation and transfer of avehicle’s registration will beless cumbersome and easy toverify. In the future, in-vehicle
digital wallets will store its
identity and present
credentials to anybody
servicing or using it.

Manual and paperwork intensive registration of new and used
vehicles is inefficient. We envision a future when registration
does not require owners to walk into VRAs, and the agencies canissue, transfer or revoke registrations using seamless datatransfer between agencies, entities and individuals. At this point,
the only verifiable connection between a vehicle and its owner isa piece of paper and perhaps a digital copy that resides in acentralized database at VRAs. There should be an electronic ordigital twin of such a relationship that can be accessed andverified digitally and from which stakeholders can quickly confirm
the existence of such a relationship as part of a variety ofexisting and future applications.

Vehicle Registration
Authorities

Whenever a stakeholder needs to digitally verify the ownershipof a vehicle, then VRAs provide such verification electronically.
The VRA should be able to transfer the registration from one
stakeholder to another without shredding and printing a newregistration, as is now done in many countries. Renewing a
registration should be as easy as executing a simple digital
signature and receiving a digital payment from the consumer or4other vehicle owner and operator entities.

Fleet Owners

Owners and operators of vehicle fleets can electronicallyregister multiple vehicles after purchase or lease. The
registration can be triggered by the dealership or lessor on
behalf of the fleet owner or operator. Digital wallets will
efficiently store and provide the identity of multiple vehicle
identities, insurance policies, safety and emissions inspections,and other requirements. Any stakeholder requesting verificationof such credentials in the wallet will leverage the trust thatcomes from digital vehicle identity anchors or an issuers DID on
a ledger.

Dealerships

Vehicle identities are passed on to their franchised dealerships
by the OEMs. Since in some jurisdictions dealerships assist the
new vehicle owners with the registration process, dealers play arole in providing verification of those identities.

Vehicles

Vehicles in the future will have an embedded wallet with theregistration certificates.

Banks and Captive Finance
Companies

These institutions can continue to work with VIN to issue
traditional auto loans. They can also use VIDs to build innovative
financing models for use cases such as fractional ownership.

Stakeholders’ Future Needs
Vehicle Owners

OEMs

29

Consumers can electronically register a vehicle after they’vebought it from a dealership or another consumer. The
registration can be triggered by the dealership electronically onbehalf of the consumer. In case of a private transaction, bothconsumers can complete the transfer of registration. Digitalwallets will play a pivotal role in storing and proving the vehicle’s
identity. The digital wallet can then sign off insurance renewals,
safety and emissions inspections, and easily connect otherpersonal devices to the vehicle’s components. Any stakeholder
requesting verification of the registration can verify credentials
in the wallet in which the trust comes from an anchor on a ledger
or an issuer DID on a ledger.
OEMs assign VID and VIN for vehicles. Vehicle manufacturers
assign VINs to vehicles according to Society of Automotive
Engineers (SAE) standards (e.g., SAE - J272.). OEMs are theinitial owners of vehicles after manufacture. We envision that
OEMs will also assign initial VID and VBCs.

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4.

Adam Norris, “GoChain — Vehicle Registration & Licensing,” Medium Corporation,
https://medium.com/gochain/gochain-vehicle-registration-licensing-on-blockchain8e80b0676447, July 16, 2019.

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VID II-UC1 — Vehicle Registration
Insurance Companies

Franchised Dealership andIndependent Service
Providers and Other Repair
Shops

These institutions can continue to work with VIN to issue
traditional auto insurance. Insurance companies can issue
usage-based or per trip insurance by using digital wallets ofvehicles and their owners and operators. For other entities thatneed to verify a policy tied to a registration, vehicle owners cando so using digital wallets that connect to the underlying ledger
and are signed by the insurance companies.

VID II-UC1-BR5

A VRA shall be able to digitally transfer the registration from one
vehicle owner to another.

VID II-UC1-BR6

A VRA shall be able to digitally renew or revoke the registrationof a vehicle(s) at the vehicle owner’s request. It is recognizedthat in the future, more than one individual or entity may have anownership stake in the same vehicle.

These entities will need to verify if the vehicle is properly
registered by interacting with the vehicle and owner’s wallets.

VID II-UC1-BR7

OEM shall be able to create a VID for each vehicle using VIN,
vehicle birth certificate, and other verifiable information andprovide such information downstream to other stakeholders.

VID II-UC1-BR8

VID assigned by the OEM shall be persistent enough to proveexistence, manage access control, confirm product definitionand ownership history, and track events in the life of a vehicle.

VID II-UC1-BR9

Insurance companies, banks, and other third party service
providers shall be able to digitally verify the ownership of avehicle using the vehicle’s digital wallet, blockchain, or
combination of available sources.

VID II-UC1-BR10

VID shall be robust enough for other vehicles and infrastructurein the V2X environment to verify the identity of thecommunicating vehicle.

Banks, insurance companies, and maintenance providers willcontinue to use VIN until there are enough value propositions forthem to use VIDs.

Business Requirements
VID II-UC1-BR1

A vehicle owner shall be able to electronically register a vehicle
after purchase from a dealership or another consumer. In caseof a private transaction, both consumers shall be able tocomplete the transfer of registration without the need tophysically visit a VRA (or similar entity) or send paper documents
via mail.

VID II-UC1-BR2

A vehicle owner’s digital wallet shall be tied to a government
provided identity, the vehicle’s previous registration, its VIN, VID,
and new registration.

VID II-UC1-BR3

A vehicle owner or operator shall be able to prove registration
to outside third parties such as insurance, law enforcement, andmaintenance service providers without producing personal
information.

VID II-UC1-BR4

A VRA shall be able to digitally verify if the vehicle is legally
registered.

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VID II-UC2 — Maintenance Traceability
Objectives and Key Pain Points
Proper and timely maintenance of vehicles impacts warranty
claims, insurance, and resale value. There is an information
asymmetry between vehicle owners, repair service providers,OEMs, and other third party service providers. The objective of
this use case is to reduce the information asymmetry and theresulting disbenefits for all the stakeholders involved. At
minimum, the scope of this use case is to provide information to
the vehicle’s stakeholders concerning the maintenance records
by the way of VID pertaining to where and when such services
were performed. As described in the earlier part of thisdocument, the working group will, in the future, consider theability to verify and transmit details of maintenance services
provided, including identification of parts replaced or repaired.
Using digital vehicle identity
and maintenance activities
anchored on DLT/ Blockchain
infrastructure, users canverify where and when
maintenance or repair was
performed on a vehicle.

It is important to note that this document and the subsequent
technical specification document does not consider thefollowing:
Replace or modify existing rules by which states andprovinces grant, deny, and revoke licenses to operate repair
service facilities.

Replace or modify how the vehicle's maintenance history isutilized by the OEMs, dealerships, insurance companies,
states, and provinces.
Replace or modify how the repair services perform
maintenance at their locations.

33© 2021 MOBI — VID II Use Cases and Business Requirements

Stakeholders and their Current Needs
Vehicle Owners

The owners are required to provide as much verifiable
information about repairs performed on their vehicles to otherparties interested in the vehicle. However, very few owners keepa record of such services performed. That is why many buyers
and lien-holders rely on multi-point inspection reports provided
by repair services prior to purchase.

Fleet Owners

Same as Vehicle Owners. In some jurisdictions, fleet owners are
required to periodically report maintenance and inspection
status of their fleet vehicles to authorities.

Vehicle Registration
Authorities

Government authorities that perform safety checks and otherinspections and may require emissions checks as part ofrenewing a vehicle’s registration.

OEMs

Settling warranty claims is cumbersome because OEMs have toverify if the vehicles have been repaired at certified repair
centers and if OEM parts were used to replace faulty ones.

Dealerships

Dealerships keep electronic records of maintenance services
performed on vehicles, records of parts exchanged or removed
due to recalls, and normal repairs.

Franchised Dealership,
Independent Service
Providers, and Other Repair
Shops

Repair Shops provide electronic records of repair services
performed on vehicles. Some repair providers can provide
maintenance history to the vehicle’s owners but not to others.

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VID II-UC2 — Maintenance Traceability
Vehicle Maintenance of the Future
Maintenance traceability is a
critical step in reducing recall
costs for OEMs and parts
suppliers.

VID-enabled maintenancerecords provide end-to-end
linage of trustable vehicle
information.

We envision a future in which anybody wanting to verify avehicle’s maintenance record shall be able to do so with ease.
Such maintenance traceability can be performed without going
through multiple and siloed systems. This will also allow OEMsand dealerships to quickly respond to parts recalls and settle
warranty claims. The resale value of vehicles can be quantified
more objectively than currently practiced, which will positively
impact current business models of buying and selling used
vehicles.
Importantly, when vehicles are bought and sold privately, buyers
can, with full confidence, get the history of repairs due toaccidents and other causes. This is a form of insurance for thebuyer, to have information certified by all the service providers
that have worked on the vehicle. It’s also a guarantee for the5seller that they can resell their vehicle at a fair price.
In this version, the use case review is limited to certifying if therepair shop performed service or not and providing
maintenance records. Being able to verify replacement, andrepairs of individual parts is out of scope.

Stakeholders’ Future Needs
Vehicle and Fleet
OwnersManage and take ownership of the vehicle’s identity by
managing in-vehicle and mobile wallets. While vehicle owners
will have access to maintenance information, they will also havethe responsibility to make sure maintenance records about theirvehicle are correct.
The owners have a cryptographic key that only they can use andwhich unlocks access to the vehicle data. If they like, they cangive access to (or even sell) part of their data to an insurancecompany for a customized quote, or to a future buyer if they
resell their vehicle.

OEMs and Dealerships

OEMs may send a request to verify maintenance schedules,
status, and history from the repair services. At present the scopeis limited to if the repair shop performed a service or not on thevehicle and receiving maintenance record.

Franchised Dealership,
Independent Service
Providers, and Other Repair
Shops

Repair service providers will need to automatically respond torequests from OEMs, insurance companies, and vehicle owners
for a certification that the shop did perform repairs on a vehicle
and transmit the maintenance record.

Insurance Companies

Insurance providers have an interest in knowing which repair
shop provided the maintenance or repair service. Some
insurance companies have established networks of preferred
repair shops.

5. Julien Jimenez, “Use Case of Blockchain Technology - Car Maintenance Book,” WorldLine,https://worldline.com/content/dam/worldline/documents/publications/briefing/expert-itw-car-maintenance-en.pdf, Accessed October 21, 2020.

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VID II-UC2 — Maintenance Traceability

Bibliography

Business Requirements

European Commission. “REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL Simplifying the Transfer of Motor Vehicles Registered in Another Member State within the Single
Market.” Last modified April 4, 2012. https://eur-lex.europa.eu/legal-content/en/TXT/?
uri=CELEX%3A52012PC0164.

VID II-UC1-BR1

A vehicle owner shall be able to electronically verify to a repair
service that the vehicle is indeed registered to the owner.

VID II-UC1-BR2

A vehicle owner shall be able to tie their wallet to the vehicle's
wallet so that the repair shop can obtain permission to perform
repair services on the vehicle.

VID II-UC1-BR3

A vehicle owner shall be able to provide a link or an electronicsource to buyers, insurance companies, and DMVs for them toverify if in fact maintenance was performed at the repair shop.

VID II-UC1-BR4

OEM shall be able to obtain from a repair shop a verificationthat it performed service on a vehicle in question.

VID II-UC1-BR5

Repair shop shall be able to provide verification that it did
perform a repair service on a vehicle in question.

VID II-UC1-BR6

37

Repair shop shall be able to transmit maintenance records
along with the service verification request.

© 2021 MOBI — VID II Use Cases and Business Requirements

Jimenez, Julien. “Use Case of Blockchain Technology - Car Maintenance Book,” WorldLine.
Accessed October 21, 2020.
https://worldline.com/content/dam/worldline/documents/publications/briefing/expert-itwcar-maintenance-en.pdf.
Norris, Adam. “GoChain — Vehicle Registration & Licensing.” Medium, July 16, 2019.
https://medium.com/gochain/gochain-vehicle-registration-licensing-on-blockchain8e80b0676447.
Reports and Data. “Automotive Repair & Maintenance Service Market By Parts (Tires, Wear andtear parts, Collision body, Batteries, Others), By Applications, By Technology (Microcomputers,
Aluminum, Wi-Fi), By Service type And Segment Forecasts, 2016-2026.” Accessed December 16,
2020. https://www.reportsanddata.com/report-detail/automotive-repair-and-maintenanceservice-market.
US Department of Justice. “Understanding an NMVTIS Vehicle History Report.” Office of Justice
Programs. Accessed September 10, 2020.
https://vehiclehistory.bja.ojp.gov/nmvtis_understandingvhr.

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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 roadproviders, smart city leaders, and technology companies working to accelerate
adoption and promote standards in blockchain, 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 less congested. MOBI itself is technology and ledger agnostic. For additional
information about or joining MOBI, please visit our website.

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MOBI@dltMOBI

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