THANK YOU FOR SUBSCRIBING
Government CIO Outlook | Friday, December 13, 2019
Blockchain unquestionably has many benefits in different sectors of multiple industries. How is it going to contribute to the toll collection systems?
FREMONT, CA: It is a norm for people all over the world to pay tolls toward bridge, road, tunnel, or other infrastructure usages when traveling over long distances.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Earlier tollbooths used to take cash; however, with society getting modernized, tollbooths have started to accept debit and credit or smart cards for quicker transactions.
In most implementations, automobiles are equipped with an automatic radio transponder to which roadside toll reader devices can communicate and register the automobile’s usage of the road when it crosses the toll reader. The toll is then charged to the electronic payment system to the registered user of the vehicle.
This technique is faster as well as economical for the government. Electronic toll lanes can also function alongside manual lanes for vehicles that are not equipped with radio transponders.
Toll collection can be made more efficient with blockchain
State governments are already experimenting with blockchain to shield the data. Blockchain offers a secure and transparent system to create, record, and evaluate any kind of transaction.
There is no requirement of any middlemen as all the valuable services, or things can be exchanged using blockchain smart contracts. These can also be utilized for defining and enforcing rules and penalties in a contract between two parties.
Recently, a group of researchers introduced radio transponder devices with acts similar to the ones in electronic toll collection. In this case, the toll readers will communicate with a centralized system based on blockchain, which comprises registered automobiles’ database, the smart contract’s definition, and the ledgers containing transaction data of enrolled automobiles and users.
Toll payment itself can be made via a cryptocurrency e-wallet that has the address according to the smart contract. Hence, credit can be easily added to the vehicle’s owner wallet with the cryptocurrency assisted by the toll agency.
Sending and receiving transaction data has become easier and more secure with this technique, especially for the state and local toll agencies. Besides, this technique is faster for drivers. Distributed ledgers make sure that there has been no meddling with the data and that all the agencies, which include even the state and federal government agencies, possess the same amount of transactions.
Researchers are also combining blockchain with edge computing, which will enhance the quality of the service for time-critical transactions. It is possible to enable a transparent profit distribution scheme amongst various operators using immutable and open-source blockchain smart contracts.
Now, it is convenient to say that blockchain will soon revolutionize the techniques of toll payments exchange.
See Also: Top Smart City Solution Companies
More in News