Cardano Unveils Launch Of First Automotive Project in Davos
The world’s first automotive project on the Cardano blockchain was unveiled on Wednesday at the World Economic Forum in Davos. The eTukTuk project announced that it will begin operations in Sri Lanka with the support of the local government. Present for the Cardano Foundation was CEO Frederick Gregaard and Global Head of Marketing David Taylor.
While numerous attempts to convert the tuk-tuk to an electric operation have failed in the past due to a lack of sufficient charging infrastructure, eTukTuk aims to overcome this hurdle by creating a peer-to-peer (P2P) economy using the Cardano blockchain.
eTukTuk plans to address the lack of charging infrastructure and the high cost of e-vehicles in developing countries by building a dynamic, multi-faceted revenue model. In doing so, the P2P economy is intended to incentivize the expansion of the highly scalable eTukTuk network of charging stations and eTukTuk-owned e-vehicles via the Cardano blockchain.
This, in turn, is intended to support the much-needed shift away from fossil fuels in regions where e-vehicle infrastructure is lacking, while addressing global issues such as air pollution, CO2-related health problems, and financial inequality.
And change is to start with tuk-tuks, which are a symbol of affordable mobility in developing Asian and African countries. However, they are also responsible for greater CO2 emissions than cars, contributing significantly to global carbon emissions.
To kick off the project, eTukTuk is working with the Sri Lankan government and influential industry partners to ensure that the current 1.2 million internal combustion engine tuk-tuks are gradually replaced by electric-powered tuk-tuks.
In a statement, James Bowater, strategic advisor to the project, said eTukTuk is working closely with its partners in Sri Lanka to scale operations. CEO Ryan Fishoff said, “We are creating a uniquely innovative, affordable, and accessible platform for drivers who, right now, are excluded from making the transition to EVs.”
Mayor of Colombo, the capital of Sri Lanka, where 70% of all tuk-tuks in the country are on the roads, Rosy Senanayake, said:
Since eTukTuk’s solution makes EVs affordable and accessible, Colombo is fortunate to be the first city to have the answer to the growing transportation crisis which we all currently face; especially considering that there are currently no other nations across the globe taking these kinds of strides.
Remarkably, Sri Lanka has passed a law that requires 100% of all government vehicles, passenger cars, and two and three-wheeled vehicles to be replaced with electric vehicles by 2040.
What Is the Cardano Blockchain Used For?
The team behind eTukTuk has the vision to create a P2P ecosystem with which it can fix the aging transportation infrastructure and create new, equitable earning opportunities for drivers. In doing so, the Cardano blockchain is expected to play a central role in driving “sustainable change in transportation solutions” and combating financial exclusion.
Drivers and users of eTukTuk will be able to use the Cardano blockchain for transactions in order to pay for services without the need for cash.
Further, the ecosystem uses the Cardano blockchain to allow drivers, passengers, and other participants in the network to earn rewards. It also allows them to benefit from the increasing use and expansion of the eTukTuk charging infrastructure. The project expects that the amount of income earned by drivers could increase by up to 400%.
At press time, the Cardano (ADA) price stood at $0.332. After seeing the price break out of a more than a half-year downtrend last Friday, ADA is now experiencing a correction where $0.32 is a key support for maintaining the uptrend.
Featured image from Agnieszka Kowalczyk / Unsplash, Chart from TradingView.com
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