Cardano Launches First Automotive Project in Davos as Cryptos Pare Gains

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  • The blockchain is planning to support affordable transportation in Sri Lanka.
  • The announcement comes amid consolidation in the price of most digital assets.

Cardano blockchain announced Wednesday during the World Economic Forum in Davos that it is working on an automotive project in collaboration with eTukTuk and the government of Sri Lanka. Among the areas of collaboration is a development of an expansive charging infrastructure for affordable electric vehicles.

‘‘We are thrilled to announce our launch with the support of the Sri Lankan government and major partners. Our network of charging stations along with our affordable etuk-tuks are coming soon to Sri Lanka.’’ eTukTuk posted on Twitter.

Cardano is planning to use a peer-to-peer economic model to address the challenges facing electric transportation in developing countries – creating a multi-dimensional revenue model, including eTukTuks owned through the Cardano blockchain.

According to the announcement, the end game is to have the more than 1.2 million internal combustion engine tuk-tuks in Sri Lanka turned electric. Cardano also takes it as an opportunity to combat global carbon emissions through the partnership.

The Project Is Touted as a Solution to Carbon Emissions

Tuk-tuks are a symbol of affordable mobility in the developing economies of Asia and Africa, notes the announcement. Still, at the same time, they contribute the most to air pollution. Sri Linka is seen as an important partner for Cardano because the country has passed a law that requires all government vehicles and commuter cars, including the three-wheelers, to be fully electrified by 2040.

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Using Cardano as an interface, drivers and the users of etuk-tuks would be able to complete transactions, including payments for the services digitally. Further, the blockchain would incentivize users with rewards, with the revenues of the eTukTuk drivers expected to rise more than four times with the technology.

The announcement comes at a time when cryptocurrencies are consolidating following the new year’s price rally. ADA traded at an intraday low of $0.3268 Thursday and a high of $0.388. Major tokens have also parred some of their gains. From a weekly high of $21,488, Bitcoin touched a low of $20,355 on the weekly chart. Similarly, Ether has retraced from a high of $1,600.