Luxury car maker BMW has partnered with Coinweb, a decentralized blockchain Layer 2-based company, to introduce blockchain-based tools into its operations. The company will develop a blockchain-based vehicle financing process automation and rewards program for auto company customers adapted to Thai compliance processes.
BMW introduces blockchain into business
Due to the ostensible reliability of the technology and how it helps save costs, more and more companies are adopting blockchain processes as part of their operations. On December 29, German automaker BMW announced a partnership with Coinweb, a Layer 2 (L2) blockchain interoperability protocol, to introduce blockchain-based processes into its operations.
This alliance envisions two different tasks. The first is the development of a smart contract platform aimed at streamlining the various processes that need to be completed to finance BMW branded vehicles. According to the press release, this includes implementing a “fully integrated anti-money laundering (AML) & know your customer (KYC) tool” that is compliant with local Thai law.
The second task is to create a blockchain-based loyalty program to offer products and services to the brand’s customers and assign a rank to each customer directly related to reward accumulation.
Coinweb says it will use Binance’s Bnb chain as the anchor chain for these transactions due to its performance-to-cost ratio. However, transactions can be broadcast to other blockchains if desired.
Advantages of distributed ledger technology
Bjorn Antonsson, CEO of BMW Leasing in Thailand, explained the benefits of moving part of the process to a decentralized technology platform. he said:
We predict that this shift of manual paperwork to immutable records on the blockchain will greatly contribute to error-free efficiency and transparency.
BMW’s deal comes at a time when blockchain-based technology is being hit by a downward trend in the cryptocurrency market, partly due to the collapse of FTX, one of the world’s largest crypto exchanges.Nobel As award winner Paul Krugman said on December 1st, several such as Tradelens, a global trading platform backed by Maersk, and a blockchain-based engine that was being developed for the Australian Stock Exchange. A significant non-cryptographic blockchain-based project has recently taken place. cancel.
Still, Coinweb is positive about the consequences of this partnership on perceptions of how useful blockchain technology can be. Coinweb CEO Toby Gilbert declared:
Once this project is fully launched, we hope it can be used as a benchmark to prove that traditional businesses can take full advantage of blockchain technology and reap significant benefits without deviating from its core values and mission. .
What do you think of BMW’s proposed implementation of blockchain technology? Let us know in the comments section below.
image credit: Shutterstock, Pixabay, Wiki Commons, Yuri Kabantsev / Shutterstock.com
Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. NEITHER THE COMPANY NOR THE AUTHOR WILL BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY DAMAGE OR LOSS ARISING OR ALLEGED TO OCCUR ARISING OUT OF OR RELATING TO YOUR USE OF OR RELIANCE ON ANY CONTENT, PRODUCTS OR SERVICES DESCRIBED IN THIS ARTICLE. We are not responsible.