Vodafone in JV with Sumitomo for economy of things blockchain – Ledger Insights

Last year, Vodafone unveiled its Digital Asset Broker (DAB) blockchain network that enables IoT devices embedded in cars or machines to make financial transactions. Last week, Vodafone said it was rolling DAB into a new Economy of Things joint venture with Sumitomo Corporation, which will retain an 80% stake but is looking for other investors and partners.

“Sumitomo is the ideal partner to help drive the economy of things and the associated new business opportunities for us, our customers and partners,” said Vinod Kumar, CEO of Vodafone Business. “For example, a rental car can charge drivers either on a pay-as-you-drive or subscription basis; drivers of electric vehicles can receive real-time information about the availability of the nearest charging point and recharge without problems; and fleet management companies can automatically pay tolls.”

The mention of vehicle applications is because the automotive and transport sectors are the primary targets for the rollout, first in the UK and Germany. The rest of Europe and North America will follow. Unsurprisingly, there will be discussions with Sumitomo subsidiary SCSK about creating a footprint in Asia, including Japan. Sumitomo and Vodafone have a broader strategic alliance, first announced in 2020.

DAB’s first application trialled electric vehicles that communicated autonomously with charging points via the platform, removing the hassle of the driver having to install multiple apps.

A single SIM card forms the core of the Vodafone solution when embedded in a device. A small piece of software turns it into a DAB SIM with the addition of a DAB pass. This ability to have a digital identity allows the SIM card to interact with others, with the blockchain providing the transaction layer.

Vodafone and Sumitomo are not alone in looking at the potential for the economy of things in the automotive sector. Bosch has been working with Fetch.ai for several years and in February backed a new foundation focused on industrial blockchain applications, with mobility as one of three target sectors. Emphasis has been placed on using Fetch.ai to make it possible to use data for machine learning / AI in a privacy-preserving way.

The MOBI Consortium is dedicated to using blockchain for automotive and mobility applications, with several major automotive companies as members. The working groups cover a range of applications, from vehicle identity to a marketplace for mobility data. It has also developed its own Integrated Trust Network (ITN), a digital identity register.