ERC-1155: Simplifying Multi-Token Vehicle Management
Digitalization of assets in the form of tokens is the new trend in recent times, which is changing the working of different industries. Following the same trend, the automotive industry is also undergoing the same transition period. One major role played in this transition is the presence of ERC-1155, a multi-token standard, that allows companies to manage multiple digital tokens together. The notable feature of ERC-1155 is its efficiency in managing both fungible items (like emission credits) and non-fungible items (like vehicles).
Understanding ERC-1155:ERC-1155 is a smart contract standard developed on the Ethereum blockchain platform. It’s different from conventional tokenizing tools like ERC-20 (used for regular tokens) and ERC-721 (for unique items or NFTs). The specific feature of ERC-1155 is its efficiency in carrying the features of both ERC-20 and ERC-721 in a single system. This makes it a suitable platform for multi-token vehicle management.
For example, a car can be shown as a non-fungible token (NFT), including details like the name of its owner, its service record, kilometres it has been driven etc. The other details like like insurance policies, maintenance tokens, or emissions credits can be managed as fungible tokens, bringing all the tokens to one place.
Better Compliance and Record-KeepingManaging the data of the automotive industry is not an easy task, from purchase details to insurance, pollution, service records, etc., and requires lots of paperwork. Making the management of vehicle data a difficult task. The use of ERC-1155, in tokenizing the assets makes the data not only easy to manage but also makes it more secure, easy to access and less prone to hacking.
For instance, when a car is serviced, a maintenance token can be created to record the work performed during the service. Following the same practice, insurance companies can also issue policy tokens which can be updated easily and can't be changed without permission. This is known as tokenized compliance, and it helps in reducing errors and fraud.
Reasons for Using ERC-1155By relying on ERC-1155, companies can save time, reduce costs, and keep all data of their vehicles saved securely in one system. This type of tokenization is suitable for car makers, fleet operators, and insurance companies who want to digitalize their operations.
With the increasing use of technology, multi-token vehicle management based on ERC-1155 will play an important role in managing the real-time data of vehicles. It’s an intelligent way to manage all types of activities from the purchase of a car to its servicing, and insurance in one place in a simple and digital format.
