Summary

Filament has set its eyes on smart mobility with the launch of Blocklet for Trusted Vehicle Applications (TVA), a blockchain-powered offering designed to work with connected vehicles and primarily targeted at automotive OEMs. Filament's Blocklet technology extends the value of IoT with a transactional capability, and with Blocklet TVA the startup aims to enable OEMs to create new connected-vehicle applications and provide services on top of a blockchain foundation.

The 451 Take

Blockchain and IoT combined are powerful, especially in the rapidly changing mobility landscape. With the growing amount of data generated by edge devices such as vehicles, a greater willingness to share that data, and the concurrent use of IoT and blockchain technologies (linking the physical and digital worlds), automotive OEMs and other mobility businesses should be able to operate more efficiently and offer smarter mobility services. Although OEMs and their suppliers are burdened with capital investments and product refresh cycles that limit their ability to move quickly, Filament is in a pretty good position with its turnkey approach, which can be applied to other industries with similar characteristics, as well.

Context

Reno, Nevada-based Filament is a technology startup focusing on the intersection of Industrial IoT (IIoT) and blockchain technology. In January 2018, the company unveiled the release of its Blocklet Chip, a new piece of hardware (built on Filament's Blocklet blockchain technology) that extends the value of IoT by bringing a native economic capability to IIoT devices. In its USB-compatible form factor, the hardware allows existing IIoT equipment to execute transactions on a blockchain.

In October 2018, Filament launched Blocklet Kit, a blockchain offering that bundles the company's hardware with relevant software and documentation. It also includes training and support, and allows companies to easily get started with blockchain projects.

Filament has completed two rounds of strategic funding totaling $22m, the most recent round ($15m) took place in 2017, led by Verizon Ventures and Bullpen Capital, and joined by Intel Capital, JetBlue Technology Ventures, CME Ventures, Flex Lab IX, Backstage Capital and Tappan Hill Ventures. Previous investors include Samsung NEXT, Resonant Venture Partners and Digital Currency Group.

At the end of 2018, the company announced the launch of a blockchain offering aimed specifically at the mobility industry. Blocklet for Trusted Vehicle Applications has been exclusively designed to work with connected vehicles.

 

Technology

Blocklet TVA, comprising hardware and preloaded software, sits at the intersection of connected vehicles and blockchain networks. It can be used to create and maintain an immutable, cryptographically verifiable vehicle history on a distributed ledger, allowing OEMs and other parties to ensure transparent vehicle provenance, usage history and maintenance activity across the supply chain. It also allows physical equipment to transact with each other, independently.

By leveraging connectivity services, built-in environmental and motion sensors, and a blockchain-native chipset, Blocklet TVA taps into vehicle data, processes it and logs it directly into a blockchain. More specifically, the data is 'packaged' into a transaction, cryptographically signed and wirelessly transmitted to a hosted network of validator nodes, where transactions are verified and added to the blockchain. Blocklet TVA supports multiple blockchain platforms, including Ethereum and Hyperledger Fabric, and can be used for vehicle authentication, vehicle-part provenance, usage-based fees and insurance, among other application areas.

 

Customers and Partnerships

Filament has partnered with Daimler Trucks North America to automate and streamline the OEM's aftermarket remanufacturing supply chain operations. DTNA has many partners and suppliers that need to track and share data associated with their vehicles and vehicle parts. Filament's Blocklet technology is used to provide efficiency and transparency across the entire supply chain.

Filament has also joined the Mobility Open Blockchain Initiative (MOBI) – possibly the biggest consortium focused on applying blockchain technology in the mobility sector – to participate in the development of common standards and to provide technical expertise for blockchain proof-of-concept and pilot projects, as well as production deployments within the industry.

 

Competition

In the automotive/mobility space, Filament competes with blockchain startups involved in mobility-related blockchain projects, such as Chronicled, Oaken Innovations, VeChain and XAIN, as well as the likes of Cognizant and IBM. However, in many cases, Filament's potential relationship might be better described as 'coopetition' rather than purely competitive.


Filament SWOT Figure 1

Csilla Zsigri
Senior Analyst, Blockchain & Distributed Databases

Csilla is a senior analyst for 451 Research’s Data, AI & Analytics channel. She currently focuses on decoding the blockchain market to help replace confusion and complexity with an examination of the technology, the competitive landscape and available solutions that are driving the market, as well as real-world use cases and deployments.

Jeremy Korn
Research Associate

Jeremy Korn is a Research Associate at 451 Research. He graduated from Brown University with a BA in Biology and East Asian Studies and received a MA in East Asian Studies from Harvard University, where he employed quantitative and qualitative methodologies to study the Chinese film industry.

Aaron Sherrill
Senior Analyst

Aaron Sherrill is a Senior Analyst for 451 Research covering emerging trends, innovation and disruption in the Managed Services and Managed Security Services sectors. Aaron has 20+ years of experience across several industries including serving in IT management for the Federal Bureau of Investigation.

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