Why MVL? – 1. Current Problems of Mobility System

Hi. We are MVL.


Last time we had an overview of the overall business of MVL through ‘What is MVL?’.

Last Post : What is MVL?

Today we will look at various existing problems throughout the current mobility / transportation system, and find out why it must be MVL to solve them.

Problem ① : Unreasonable Service Price – Importance of Transparent Vehicle Data

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Currently vehicle owners face difficulties understanding the exact status of their vehicles. The vast majority of people are not experts of vehicles. Obviously it is a huge burden for them to realize the broken part causing problem. Plus it is almost impossible to know the accurate vehicle status without a third party such as a mechanic or a used-car dealer.

This implies that the data producer(vehicle owner) cannot be the data owner. The vehicle owner is the one who actually uses the car, but since the information about your car is better known by a third party, one can intentionally, easily hide or manipulate this information. This results in a situation where transparent vehicle information cannot be obtained.

So why should you get a transparent data of your vehicle? Let’s take a look at an example below to see the importance of it.

(Example)
A 30-year-old Kim living in Seoul. He wants to sell his car today. He had graduated college at the age of 27, and had his first car at the age of 28 when he started his life as a salesman. Although it was a used-car, car dealer told him that the condition of the car was as good as new one. He believed the dealer’s words and bought it.

Kim was a smoker, but he was in love with this new car and never smoked in his car. He always drove safe and managed his car with affection.

Nevertheless, his car had a problem with the engine and replaced it in less than a year. In the second year, the car broke up every two months and he had to pay a lot of maintenance costs. Planning to marry his girlfriend in next year, he decided to ride public transport to raise money.

The price he bought two years ago was $20,000. But the price he received from a used-car dealer today was around $10,000. The dealer pointed out a bad management of car maintenance, even he had been driving carefully for two years. Even considering the depreciation, this price didn’t make sense. But he had no other choice but to sell his car. Two years ago he could not really know the internal condition of the car before purchase, and today he could not prove that he has well managed his car for two years.

Cases like above are common in the real world. We believe in third-party statements in various situations, such as when buying or selling a used-car, getting a repairment, or purchasing an insurance product. This is caused because there is no reliable data for the condition of the vehicle. You only have fragmented datas to prove your car, and have no choice but to believe in third-parties, who insists they are ‘experts.’

Consumers who make decisions based on this incomplete data cannot get rid of suspicion, thinking they have been deceived. Service providers are also at the forefront of information manipulation.

MVL aims to build an ecosystem that produces and stores reliable vehicle information with incentive-based blockchain technology. In this MVL ecosystem, the data producer himself is the owner and the user of his car. As a result, everyone will be satisfied with reasonable services.

Problem ② : Unsafe Driving

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According to National Police Agency statistics, more than 200,000 traffic accidents occur every year in Korea alone, and more than 5,000 people die from traffic accidents. The number of deaths per 10,000 cars is 1.9 in Korea, which is the highest among OECD countries. This shows that there is a problem with current mobility system.

<OECD National Traffic Accidents in 2015 (Source: Traffic Accident Analysis System (TAAS)>

 

Country Number of traffic accidents (cases) Death (person) Deaths per 10,000 cars (persons)
South Korea 232,035 4,621 1.9
Spain 97,756 1,689 0.5
England 146,203 1,804 0.5
Japan 536,899 4,885 0.5
Germany 305,659 3,459 0.6
USA 1,747,000 35,092 1.2

Currently, mobility system relies on ‘restraining measure’ of enforcement / regulatory measures against illegal activities such as drunken driving, speeding, and false maintenance. This kind of regulation leads drivers to be negligent, results in increase in social costs, and negative cycles begin in the mobility system.

Basically, people act according to their interests. At this point, MVL intends to introduce an incentive to prevent unsafe driving. If you drive safely, you will be able to accumulate MVL points(MVP) and exchange those points to MVL coins, which will be your financial asset later. Moreover we can expect a decrease in social costs coming from unsafe driving.

Problem ③ : Fragmentation in services

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Various mobility services, such as navigation apps, gas station apps, workshop apps, insurance apps, and rent-a-car apps, provide their respective services through their own apps. Users have inconvenience of downloading and using new service apps whenever they want to use a particular service. In addition, mileage earned from certain services may be limited to the service provider.

For example, mileage earned through maintenance can only be used at the mechanic shop, and you cannot use the miliage in insurance discounts or gas discounts.

To solve these discomforts, MVL is aiming to organize mobility services into a single ecosystem. Existing services, such as buying / selling / maintenance / renting / insurance, are all services based on vehicles, but they were fragmented. However in the MVL ecosystem, all existing services are connected and you could pay anywhere with MVL coin. Incentive will be given in a form of MVL points(MVP). With MVL, service consumers will feel much more convenience and will be able to receive connected services in various areas.

Finally,

MVL is going to build one connected ecosystem that connects all the mobility services existing in the world through ① Providing Transparent/Clear Data ② Reducing Personal and Social Costs ③ Providing Connected Services.

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