Fractional Vehicle Ownership and Revenue Generation Through Blockchain Asset Tokenization

Abstract

Abstract The automotive industry is on a continuous transition towards a more sustainable and integrated ecosystem influenced by the fast-paced adoption of Electrical Vehicles (EVs) and the developments of emerging technologies such as Automated Vehicles (AVs). The road transportation sector is also experimenting with the emergent decentralized blockchain technology in various ways ranging from supply chain transparency to insurance and tokenization. Some of the recent use cases are the use of Non-Fungible Tokens (NFTs), unique digital assets designed to be immutable, to certify ownership of a vehicle, the data history of it or just for fan base development. The current paper reviews the literature findings concerning the potential of Non-Fungible Tokens for the automotive industry and proposes a new car ownership and revenue generation model using the ERC-1155 token standard. Our proof-of-concept based on fractional vehicle ownership demonstrates the feasibility of such a model that allows for revenue distribution amongst the vehicle owners according to the percentile invested in the vehicle acquisition.