Avoiding insurance fraud: A blockchain-based solution for the vehicle sector

Abstract

Blockchain is a relatively new technology originally created to store Bitcoin's transaction records. The system is highly redundant and distributed, making it very difficult for fraudulent financial transactions. While cryptocurrencies might be the most well-known use case of blockchain technology, it is wrong to assume that this technology is restricted to the financial area. Indeed, many blockchain use cases are being developed today in different areas. Due to the complexity of certain processes, a new technology associated to blockchain has appeared - smart contracts. These digital contracts act like traditional contracts, with the major difference being their automaticity. In this article, we aim to discuss how blockchain and smart contracts may be used together in order to improve organizational operations. More specifically, we demonstrate how these technologies might be used to develop a solution that avoids certain types of fraud in the area of vehicle insurance.