U.S. Department of Transportation to fund research on incentives for cryptocurrencies

  • The Department of Transportation has stated that a blockchain-based crypto incentive program will result in a transparent distribution of funds to drivers.
  • The Department of Transport is happy to fund this research and has proposed a pilot scheme through a mobile app.

In recent years, crypto assets have found a use case in numerous industrial applications. Now, the US Department of Transportation (DoT)’s Small Business Innovation Research (SBIR) program is working on one such incentive program.

The SBIR program recently unveiled a number of areas of research including research on the use of crypto-tokens to incentivize an approach to what it calls «consumer use of modality.» This information was first revealed in the pre – call notice published last week, 6 January.

The basis of the research is based on the fact that the US economy is emerging from the impact of the COVID-19 pandemic. As the market fully opens up, parking spaces for consumers, workers and other drivers will be limited.

The U.S. Department of Transportation said the scarcity of shared parking spaces, coupled with the uncertainty of finding an uncoordinated empty space, provides an interesting opportunity to influence travelers’ decisions in real time. Here’s how the official document explains it:

A new strategy using blockchain technology would provide a dynamic approach to incentivize alternatives to driving. For example, travelers can spend deposits to book a parking space or receive tokens for agreeing to use another mode of transport.

As spaces are booked and becoming increasingly scarce, the system can offer increased incentives, or signals, to travelers to choose not to book a space or adopt another mode, such as transportation public and other shared mobility options.

Blockchain technology could make it easier to track reliable payment transactions and provide verification to ensure users can access reserved parking space or deserved incentives.

Harness the power of the Blockchain

The Department of Transportation also recommended the transparent operation of blockchain technology, which will allow travelers to study incentives in real time. In addition, blockchain will also help provide decentralized and secure signal management, as well as ensure the credibility of the data.

The DoT document goes on to note that blockchain will «allow the use of novel gaming strategies among users as one other incentive, and will facilitate the coordination and scaling of the system to multiple facilities.»

The research document focuses on an initial step for the moment. In addition, the specific funding required for this transfer remains to be determined. The research document provides for the preparation of a proof of concept report through a mobile application to which the incentives would be distributed.

Esdras Collins

Esdras Collins is an early investor in bitcoin and a veteran trader in the cryptocurrency and foreign exchange markets. He is fascinated by the complex possibilities of blockchain technology and is committed to making the subject accessible to all. His reports focus on the development of various cryptocurrency technologies.

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