A partnership of five major automotive makers under the Mobility Open Blockchain Initiative, an international consortium of companies focused on mobility services, today announced field tests of a digital ledger blockchain-based vehicle identification system that would allow drivers to pay tolls and fees automatically.

The project pilot will begin in November in the United States and will include Honda Motor Co. Ltd., BMW, Renault SA, General Motors Co. and Ford Motor Co., according to Nikkei Asian Review.

The pilot platform will use MOBI’s platform, originally announced in July, from the consortium’s Vehicle Identification Working Group. That group designed and launched a Vehicle Identification platform that incorporates blockchain technology with a basic vehicle identity system.

The initial platform only included minimal information about the vehicle at creation but in subsequent phases, additional product definition, ownership history and log key events in the vehicle’s lifecycle will be added.

“A blockchain identity standard could enable a diverse suite of mobility applications that result in more efficient supply-chains, lower-cost financing, and safer roads,” said Chris Ballinger, MOBI’s founder and chief executive. “We hope these standards will ultimately make urban environments greener, safer and more livable by enabling usage-based payment for congestion, pollution and infrastructure.”

Blockchain technology operates by maintaining a highly distributed database that uses cryptography to secure transactional data on an ongoing basis. When a transaction is added to the blockchain, a number of nodes must agree to add the data and in doing so can check the validity, provide sanity checks and verify authorization.

Information stored in the distributed ledger platform would be used to recognize cars on the road using vehicle history and other identification factors. That would permit toll and fee systems connected to services to transact charges for owners without the need for cards and cash.

The MOBI partners foresee this being used for connected electric cars on the road. The blockchain would be used to assist with paying tolls, parking fees, maintenance costs, charging costs and potentially even paying for rest stop snacks.

Honda and GM have also been researching digital currency for electric cars that could compensate drivers during power outages for feeding electricity back into the grid.

Blockchain adoption in the automotive industry has been explored across numerous use cases, including carmaker Daimler AG looking to add digital currency to hardware wallets inside cars.

German technology automation giant Siemens AG announced its own foray into blockchain technology across a number of use cases such as mobility, supply chains and car-sharing. Hyundai Motor Group partnered with Blocko Inc. to design a blockchain platform to track used cars, and State Farm Mutual Automobile Insurance Co. has piloted a blockchain solution to improve the completion time of auto insurance claims.

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