IEEE Consumer Electronics Magazine - July 2018 - 73

attest to its conditions). Each modification and picture hash
(a fixed-length alphanumeric summary of data content) are
saved on the blockchain within a smart contract to certify
changes made as well as the vehicle's status. Sensors
embedded in the electronic device are used to collect passengers' and the vehicle's data. Data are then used to automatically modify insurance coverage based on car/environment
conditions and the preferences set. The proposed solution
could help lower policy modification costs and limit insurance fraud.

The UlTimaTe ConsUmer eleCTroniCs ProdUCT
During the last couple of years, cars have started to be regarded as "the ultimate consumer electronics (CE) product" [1],
mainly because of the recent research efforts and advancements in the development of autonomous vehicles [2], [3].
During this time, the wider public has also come to recognize
the potential of blockchain, which is regarded as a disruptive
technology able to bring tremendous changes to existing processes. A blockchain is a public, decentralized ledger managed
by a peer-to-peer network, which records transactions among
network nodes [4]. Past transactions cannot be modified and
could be inspected by every node. The blockchain uses a digital signature mechanism in which the issuer of a transaction
uses his or her private key, stored in a wallet, to sign a message
broadcast to the network to guarantee the integrity, authenticity, and reliability of transactions made.
Even though the blockchain was created initially to keep
track, in a decentralized way, of financial transactions (bitcoins and, later, other cryptocurrencies), researchers began
to devise solutions to record different types of information
(e.g., images and text messages) or even store and run programs, the so-called smart contracts [5]. A smart contract is
an autonomous piece of code saved on the blockchain
(hence, the code is immutable) that is programmed to behave
in a defined manner when certain conditions are met. From
the technical point of view, the code for smart contracts can
contain variables and functions. When a programmer "publishes" (i.e., deploys) a smart contract on the blockchain, it
becomes accessible by every node of the network through a
unique address. By sending transactions to this address, anyone can invoke the smart contract's functions and inspect
values recorded in its variable. Many companies are currently investigating blockchain technology and developing prototype solutions in different sectors, such as the Internet of
Things (IoT) [6], [7], supply chain management [8], and
autonomous vehicles [9].
To actively contribute to this movement, we propose a solution for an on-demand insurance service that combines blockchain technology and sensors installed on a vehicle to 1)
semiautomatically modify car insurance coverage, 2) certify a
coverage's activation/deactivation, and 3) attest to a vehicle's
status at a given time. In particular, a prototype has been created
that includes a mobile app and a portable electronic device to be
installed onboard. By using the mobile app, drivers can dynamically activate/deactivate coverage against passenger injury as

Sensors embedded in the electronic
device are used to collect passengers'
and the vehicle's data.
well as theft, fire, and weather events. Modifications are saved
on the blockchain in a smart contract to certify changes have
been made. In addition, for some coverage (theft, fire, and
weather events), the driver is required to use the mobile app for
taking photos of the vehicle. Each photo's hash is recorded in
the blockchain together with the aforementioned information.
In this way, the insurance company has proof that the vehicle
was not damaged at the time of coverage activation. The electronic device gathers, through several sensors, information
about the car location, the number of passengers, and the status
of safety belts and uses these data to automatically modify
insurance coverage based on car/environment conditions and
the preferences set.
The proposed solution is meant to complement traditional
insurance practices and could help lower policy modification
costs and reduce fraud. In fact, in a traditional insurance scenario, coverage changes are recorded with a formal modification to the contract made in the presence of the insurer. With
the proposed solution, costs could be cut since customers may
directly modify coverage by interacting with a smart contract.
To address the issue of fraud, the electronic device periodically gathers data from the vehicle and stores them (together
with location data and pictures taken by the customer before
each coverage activation) in an immutable way, providing the
insurer with a proof of the vehicle's state before the occurrence of an insured event.
Lessons learned could be easily extended to other services, such as peer-to-peer insurances, where blockchain could
be successfully used to build decentralized autonomous organizations. Other application scenarios could be envisaged for
the devised solution. For instance, in on-demand home insurances, a home hub communicating with different sensors
could be used to dynamically activate coverage, detect damages, automatically ask for intervention/refunds, and so forth.

relaTed WorKs
Among the advantages of blockchain technology, probably the
most significant ones are transparency and automation. Transparency is linked to the fact that everyone can inspect the
blockchain and that transactions cannot be repudiated. Automation is enabled by smart contracts and could be particularly
relevant in an IoT context [6], [7]. Similar to other scenarios,
CE could benefit from the adoption of this technology, as proven by the increasing interest by the field's experts [10], [11]. In
fact, blockchain could complement existing electronic payment
means [12] by enabling peer-to-peer payments without the
need for an intermediary. In smart homes, blockchain could be
used to enable intelligent appliances to automatically order or
pay for spare parts, when damaged, or as a foundation layer
july 2018

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