The concept of Decentralized Finance (DeFi) is gaining tremendous momentum within the cryptocurrency industry. As of July 2021, DeFi has reached a combined market cap of $148 billion. The idea behind DeFi is the ability to associate certain benefits of blockchain technology and connect them with smart contracts to build an ecosystem without third parties. In addition, the cryptographic functions of blockchain secure data storage, as an example, Ethereum has been fundamental to developing DeFi applications due to its secure, open source, and public protocol.
Therefore, numerous applications can be developed on top of Ethereum network, leading to decentralized autonomous organizations (DAO) and disrupting industries. Yet, one area of DeFi application that hasn’t been much investigated is within the mobility sector. In fact, the mobility industry is characterized by having multiple players leading to high market fragmentation, thus hindering people’s travel experience.
This problem mainly stems from the difficulty of sharing data across multiple actors securely. Although companies have been investing in digital resources, usually, these cannot be used across the whole industry. Consequently, existing service providers suffer from fragmentation, monopolies, mistrust among different actors, delays and disputes, not to mention slow and vulnerable payment systems along with relatively high transaction fees. As an illustration, Uber paid $749m in credit card processing fees in 2017.
All the above problems can be solved by building a decentralized and secure network featuring neutrality, transparency, visibility, authentication, user control of data, information sharing, while also introducing token payments to solve transaction pains and erase all costs incurred by the middleman. One project named MobiFi is realising this vision; the startup is building a bridge protocol to connect mobility service providers with DeFi, thus creating a decentralized and sustainable mobility ecosystem to bring together end-users, public and private operators, insurance companies, and advertisers to promote sustainability actions.
To achieve its vision, MobiFi is developing a dual-token system, namely SMile and MoFi. This unique model features a stablecoin (SMile) as a payment method within the mobility ecosystem, which offers speed, zero transaction cost, and immutability through shared ledger systems for both end-users and mobility service providers. On the other hand, the MoFi token is the core of MobiFi’s financial tool, the yield token to incentivize eco-friendly behaviour to tackle carbon footprint. The MoFi token will play a pivotal role in ensuring the bridge protocol successful operation and its governance between permission ledger and public blockchain networks.
Overall, MobiFi is well-positioned to solve the problems of the mobility industry. The team possesses the resources along with an extensive network in the blockchain and mobility spaces. They already raised $2.8m and forged fundamental partnerships with major DeFi projects. They are now developing two Proof of Concepts for testing in the Netherlands, and will commence their mobility integrations by the end of the year.
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