Members of the Finance, Securitization, and Smart Contracts Working Group co-developed Citopia vinTRAK Zero-Knowledge proof of location verification for Dealer Floorplan Audit automation.
Los Angeles — 30 March 2023: MOBI and its members have successfully demonstrated the first-ever Web3 digital infrastructure for privacy-preserving verification of vehicle track-and-trace, enabling lenders and auditors to automate Dealer Floorplan Audits (DFA). Currently, DFA is done manually, a time-consuming and resource-intensive process. The technologies piloted, MOBI Trusted Trip (decentralized identity linked with location into a verifiable trip) and Zero-Knowledge (ZK) proof of location, are foundational for many more applications, such as tolling, road usage charging, CO2 emissions tracking/reporting, and usage-based insurance.
Modern IT systems allow for the track and trace of connected devices with a big catch — the location of device users (Personal Identifiable Information, or PII) is exposed! Vehicles on dealer lots are filled with sensors that can provide accurate data about the vehicle’s condition, location, and other important information. While it is theoretically possible to use existing vehicle telematics to check location and automate the audit process, doing so can potentially reveal customer PII, for example, if the vehicle is sold or loaned to a customer. In addition, each dealer lot may contain vehicles from multiple manufacturers (OEMs) that do not share data with each other during the audit. As a result, lenders have continued with manual auditing.
MOBI’s DFA pilot uses Citopia vinTRAK ZK proof of location verification capabilities to safeguard vehicle location and other PII. The only public information required to verify the ZK proof and verification is the geofenced location of the dealership. During the audit process, the vehicle is asked “Are you in this geofenced location?” and the vehicle responds with the proof “Yes/No.” The proof does not contain any clear text information about a vehicle’s location or identity (e.g. VIN number).
An additional layer of privacy for the technology being demoed is the use of World Wide Web Consortium standards to create Citopia Self-Sovereign Digital Twins (SSDT). An SSDT is a Digital Twin (DT) where only the owner/controller has access to the data stored inside the DT and can participate in autonomous transactions. In this pilot:
Vehicle geolocation resides in the vehicle SSDT and only the vehicle data owner/controller has access to this data. Lenders receive the ZK proof and MOBI and Lenders do not have access to vehicle C-SSDT.
ZK verification of vehicle location (does not contain a specific location or the VIN) resides in both the vehicle and the lender SSDTs (MOBI does not have access to this data).
The technologies used in this pilot enable the automation of Dealer Floorplan Audit for lenders and auditors without the complications and legal risks of handling PII associated with vehicles. This pilot is foundational for many track-and-trace applications powered by MOBI Trusted Trip and ZK cryptography. Building on this innovative groundwork, OEMs can monetize connected vehicle data in future applications such as vehicle maintenance traceability, battery cross-border compliance, and usage-based services.
The DFA Pilot using Citopia vinTRAK ZK proof of location verification is spearheaded by MOBI’s Finance, Securitization, and Smart Contracts (FSSC) Working Group. Many thanks to FSSC contributors: Accenture, Altaventure, Amazon Web Services, BMW Bank, CEVT, Connections Insights, CO-OP Financial Services, ConsenSys, D.E. Consulting, DENSO, DMI, Ford Credit, Global Debt Registry, GM Financial, IOTA, Itochu, National Automobile Dealers Association (NADA), Nissan Motor Acceptance Company, On the Road Lending, Orrick, Quant Network, Quantstamp, Reply, RouteOne, Southeast Toyota Finance, Spring Free EV, Stellantis Financial Services, Tezos Foundation, Toyota Industries Corporation, Trade Log, and USAA.
Learn more about completed and ongoing pilot projects at MOBI here. Organizations of all sizes, industries, and locations are welcome to join MOBI and contribute to Citopia development and testing.
About MOBI
Mobility Open Blockchain Initiative (MOBI) is a global nonprofit smart mobility consortium. MOBI and our members are creating blockchain-based standards to identify vehicles, people, businesses, and MOBI Trusted Trips. We are building the Web3 digital infrastructure for connected ecosystems and IoT commerce. Our goal is to make transportation more efficient, equitable, decentralized, and sustainable, all while preserving the data privacy of users and providers alike.
For additional information about joining MOBI, please reach out to Griffin Haskins (griffin@dlt.mobi) or visit www.dlt.mobi.
Media Contact: Grace Pulliam, MOBI Communications Manager
Email: grace@dlt.mobi | Twitter: twitter.com/dltmobi
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