Toyota partners with Ethereum to advance automotive digitization
Japanese car giant Toyota is considering introducing Ethereum blockchain technology into its car systems to increase the value and safety of cars. According to a recent blog post from Toyota Blockchain Lab, Toyota is researching how to bring automotive mobility to a public blockchain. The concept, first announced in April 2023, aims to make cars more digital through blockchain technology.
Toyota has proposed a Mobility-Oriented Account (MOA) based on the Ethereum ERC-4337 standard, aiming to improve the wallet user experience and provide additional features such as multi-user operation. This standard not only eliminates the reliance on seed phrases, but also allows car owners, dealers and administrative agencies to participate in the transaction approval process.
Motivation to embrace blockchain
Toyota’s Blockchain Lab noted that the ERC-4337 standard could solve many of the challenges of traditional blockchain account management, such as the potential loss of accounts when in-car equipment malfunctions. This standard improves the security and flexibility of account management by separating authentication and key management so that even if the private key is lost, the account will not be lost.
Toyota's goal is to integrate mobility with social systems in "Mobility 3.0". In fact, most mobility exists in public spaces and is facilitated through interactions with other vehicles, people, and external factors such as traffic lights and energy facilities. This means that liquidity is not just personal property but a semi-public entity. A public blockchain designed to share state with a large number of people could be a strong choice for implementing Toyota's mobility concept.
Source: Toyota Blockchain Lab Toyota’s “Mobility 3.0” concept
Toyota Blockchain Lab also expressed excitement about update EIP-7702, an update proposed by Ethereum co-founder Vitalik Buterin that aims to improve smart contract interoperability and efficiency. Toyota believes that these technological improvements will greatly enhance the transparency and efficiency of vehicle management.
In the real world, we identify cars by their make, model, color, and even the way they are driven. From a digital perspective, this involves overlaying the states of the driver and vehicle. The idea is to represent these states on the blockchain so that each vehicle functions like an account.
Toyota said that through MOA, the car becomes a service entity to prepare for future autonomous driving. Imagine that every car, including the one in front of you, has its own account, seamlessly connected to users and other systems.
Image source: Toyota Blockchain Lab Toyota plans the overall architecture of Account Abstraction
Source: Toyota Blockchain Lab Detailed description of Toyota Planning Account Abstraction
How Ethereum Technology Improves Car Management
Traditionally, creating a blockchain account for a car meant storing private keys inside the vehicle, but this came with significant risks. If the private key is lost, the account is also lost. Toyota's solution is to use the ERC-4337 standard, which separates authentication from key management so that accounts remain intact even if the private key is lost.
Users use the smartphone app to present the address and rights represented by the NFT to MOA-IVD and perform hardware operations on the car, such as unlocking the key. These NFTs are recorded on the blockchain, and the car's hardware operation is realized through the interaction between the user, the car and the blockchain. This means flexible digital rights can be exercised over mobile hardware operations.
Source: Toyota Blockchain Lab Blockchain car operation process
Additionally, MOA allows multiple entities to participate in the operational approval process, not just a single entity. This means that car users, owners, manufacturers, dealers and government agencies can all participate in the approval process for car transactions. This multi-entity approval mechanism makes vehicle operation safer and more responsible.
Image source: Toyota Blockchain Lab MOA allows multiple entities to participate in the operation approval process
A unique feature of ERC-4337 is the CREATE2 opcode, which allows the address to be set before the account is deployed, which makes cross-chain between existing vehicle identification systems and on-chain addresses smoother.
The future of Toyota blockchain technology
Toyota’s Blockchain Lab emphasized that the application of the ERC-4337 standard can greatly reduce challenges in traditional methods, including problems such as loss of private keys and accounts, and limited blockchain functionality. This standard also creates a distinction between the authentication process and key management, making account management more secure and flexible.
In summary, this move by Toyota will bring greater transparency and safety to the automotive industry and promote the closer integration of vehicles with public infrastructure. With the continuous development of blockchain technology, Toyota hopes to improve the digitalization and service orientation of cars through these technological improvements, making the driving experience safer and more efficient.
