BMW, the luxury car manufacturer, has partnered with Coinweb, a decentralized blockchain layer 2-based company, to introduce blockchain-based tools to its operations. The company will develop blockchain-based automation for vehicle financing processes, and also a rewards program for customers of the automotive company adapted to compliance processes in Thailand.
BMW to Introduce Blockchain to Its Operations
More companies are introducing blockchain processes as part of their operations due to the ostensible reliability of the tech and how it can help save on costs. On Dec. 29, BMW, the German car manufacturer, announced a partnership with Coinweb, a layer 2 (L2) blockchain interoperability protocol, to introduce blockchain-based processes to its operations.
This alliance contemplates two different tasks. The first includes the development of a smart contracts platform with the objective of streamlining different processes that need to be completed for the financing of BMW-branded vehicles. According to a press release, this would encompass the implementation of a “fully integrated Anti Money Laundering (AML) & Know Your Customer (KYC) tool” adapted to Thailand’s local laws.
The second task is the creation of a blockchain-based loyalty program to reward customers of the brand with products and services, assigning a rank to each customer directly related to their rewards accumulation.
Coinweb stated that it will use Binance’s Bnb Chain as the anchor chain for these transactions due to its performance-to-cost ratio. However, the transactions could be broadcasted to other blockchains if needed.
Benefits of Decentralized Ledger Technology
Bjorn Antonsson, CEO of BMW Leasing in Thailand, explained the benefits of shifting part of its processes to decentralized tech platforms. He stated:
We foresee this shift of manual paperwork towards immutable records on the blockchain to immensely contribute to infallible efficiency and transparency.
BMW’s deal comes at a time when blockchain-based tech is being affected by the cryptocurrency market downtrend due in part to the downfall of FTX, one of the biggest crypto exchanges in the world. As Nobel laureate Paul Krugman stated on Dec. 1, some significant non-crypto blockchain-based projects like Tradelens, a Maersk-backed global trading platform, and the blockchain-based engine that was being developed for the Australian Stock exchange, have been recently canceled.
Even so, Coinweb is positive about the result that this alliance could bring for the perception of how useful blockchain tech can be. Coinweb CEO Toby Gilbert declared:
We hope that once this project is fully launched, it can be used as a benchmark to prove that traditional businesses can fully leverage blockchain technology and benefit hugely from it, without deviating from their core values and mission.