Avalanche L1s are making headlines due to the value they have captured in the last few months by providing a custom stack. Due to this, gaming, stablecoins, DeFi, NFTs, manufacturing, and even government sectors are getting revolutionized by it.
Now, 2025 is set to add another major sector to that list: mobility and vehicle finance. Toyota has already brought global attention to Avalanche by prototyping its Mobility Orchestration Network (MON) on the stack, showing how vehicles can be transformed into verifiable, finance-ready assets. At the same time, companies like CodeNekt, a Zeeve client, are using Avalanche L1s to tackle generational problems in vehicle data management, from fraud and traceability to compliance and fleet optimization.
What this signal is, Avalanche has the architectural mobility needs. In this blog, we’ll break down why legacy systems fail to support next-gen mobility and how Avalanche’s multi-L1 design is solving those structural gaps.
Limitations of Legacy Systems in Solving Next-Gen Mobility Barriers of Automotive Sector
The automotive industry is riddled with data silos and fragmented compliance rules. A single vehicle may pass through six or more hands (OEMs, fleet operators, insurers, regulators, drivers, service centers, and more maybe). Yet the digital record that underpins its value remains fragmented, unverifiable, and non-portable
And unless mobility assets can become verifiable, finance-ready Real-World assets, the sector cannot scale into electrification, autonomy, or sustainable fleet operations. There are three major gaps that prevent mobility from becoming a trusted and liquid asset class:
First, the Organizational Gap. Vehicle registration, insurance, taxation, VIN and OEM data, and maintenance logs are all stored in isolated government or corporate databases. There is no Mobility Oriented Account (MOA) that bundles these institutional, technical, and economic claims into a tamper-evident identity. This leaves second-hand markets rife with odometer fraud, hidden liabilities, and scams, while manufacturers face massive recall costs because data trails vanish after the first ownership cycle.
Second, the Industrial Gap. Mobility is not one industry; it’s a mesh of capital networks (banks, securitization platforms), utility networks (ride-hailing, V2G, charging), and trust networks (registration, compliance). Yet there is no neutral digital layer to let them transact atomically. Fleet operators cannot refinance assets based on live operational data. Insurers misprice policies because they lack standardized, machine-verifiable safety and usage proofs. The absence of a multi-chain orchestration layer keeps mobility’s value locked.
Third, the National Gap. Vehicles are inherently cross-border, but compliance is regional. Registration certificates valid in one country lose legitimacy in another. Taxation and insurance proofs are regional. Used-car exports into developing markets often bypass safety and environmental checks, flooding roads with high emissions. Without a protocol for local-first, global-next compliance, mobility remains trapped in jurisdictional silos.
These issues create friction everywhere—from customers doubting vehicle history, to fleet operators struggling with refinancing, to OEMs navigating a maze of regulations when selling in new regions.
The answer isn’t just digitization. It’s a new trust layer that bundles institutional, technical, and economic proofs into a single, verifiable identity for every vehicle. And that’s where Avalanche L1s could shine.
How Avalanche L1s Ends Up as The Perfect Solution For The Automobile Industry?
Avalanche L1s are making a difference because they provide the purpose-built stack to address the challenges mentioned above by providing:
Data Access and Control Layer For Privacy
With the public blockchains, you cannot integrate permissioned access. Which means anyone can see the transaction happening on the blockchain. This could be detrimental to using blockchains because your competitor can see the business secrets. But this is a double-edged sword, because if you do not launch on a public blockchain, instead, launch a consortium chain, even then, your problem will still remain because not every player will be using the same stack as you. In that case, you still face the problem of data silos.
That’s where Avalanche L1s are providing data access and control layers that car manufacturers can use to interact with their peers and share only whatever is necessary for the smooth operation of the business, irrespective of the stack they use.
To do that, Avalanche L1s allow setting up administrator nodes with full control over the stack, thereby ensuring role-based access for regulators and competitors who are willing to collaborate but don’t have the means to do that without jeopardizing operations due to privacy constraints. And its bridges can also help interact with different chains irrespective of the stack they use.
Native Interop through Multi-L1 Architecture
Interoperability is a challenge when there are various players in the industry using different stacks for operation. Avalanche L1s are using multichain support through Interop using Avalanche Warp Messaging and Teleporter to allow communication, especially in the Delivery-versus-Payment (DvP) transactions. Because you need instant interoperability irrespective of the stack that two different applications are using when interacting with each other, this is highly suited for use cases such as BEVs, monetizing energy storage, logistics efficiency, and green transition.
Toyota’s MON 4-L1 prototype architecture below illustrates how Avalanche L1s can be configured for mobility with dedicated L1s for trust, finance, utility, and stablecoin payments, all connected through Avalanche Interchain Messaging (ICM). This modular design makes Delivery-vs-Payment and cross-network coordination possible in a way legacy infrastructure never could.
Cross-Border Compatibility Via Custom VMs:
Compliance is another major battle that the automotive sector is wishful of winning, but they do not get the means to help achieve that when they are operating in different jurisdictions. With the help of Avalanche L1 chains, automobile companies can create built-in KYC/AML checks, specifically targeting financiers and insurers.
At the same time, it is also possible to create an administrator dashboard using the Avalanche L1 stack and give role-based access to regulators to access important information and when needed. At the same time, preserving privacy in the process through eERC-20 features that Avalanche L1s are using.
Building The Fungibility Ladder
Making vehicles fungible is a major bottleneck for fleet owners because they cannot set up standards where they can self-identify the vehicles and make them readily available for financing in cross border operations. Avalanche L1s provide a fungibility ladder for these fleet owners dispersed across different jurisdictions through a standardized access to overcome this. Using Avalanche L1s, the automobile players can spin up their own chains and set up specific traits for their NFTs that can be easily exchanged overseas/cross border in a near instant, scalable cost-effective and compliant manner, eliminating the friction to manage cross border fleet management that automobile players are going through at the moment.
Optimizing Cost For Faster Deployment
This is the most important aspect to consider when launching a blockchain-based automotive business, as you do not want to overburden yourself with unnecessary technology. Avalanche L1s are purpose-built because there’s no compulsion to stake like 2000 AVAX to run your validators for your chain.
With that being said, you are getting a stable infrastructure cost to launch your automotive application on top of Avalanche L1s, and despite their rigorous increase in usage, the cost wouldn’t be inflating in the near future because the L1s have Pay-As-you-Go, custom gas tokens, and other specs to keep the operations optimized from a cost standpoint.
At the same time, the consensus mechanism of Avalanche L1s is purpose-built as well to accommodate a scaling automotive sector with transactions matching almost 4500 TPS due to the random sub-sampling consensus mechanism. Martin Eckardt, Senior Director of DevRel at Ava Labs, specifically emphasizes the role Avalanche L1s are playing in keeping the cost low for efficient operations despite the automotive business scaling in a podcast between Zeeve’s CEO, Dr Ravi Chamria, and Francis Hanchem, founder of CodeNekt:
Future Proofing Mobility
Avalanche L1s have an advantage when it comes to future-proofing the mobility sector because they have the capability to bridge finance, mobility, and IoTs under a common stack, which no other stack has delivered so far. Due to this trait only, the Togg ecosystem in Turkey has partnered with Avalanche to take mobility to the next level.
If you are someone in the automotive industry facing the problems mentioned in this blog, Avalanche L1s can rightfully address them.
But if you are bothered that all of these would amount to spending hours to integrate the same, Zeeve can help you in this regard to launch your Avalanche L1 for the Automotive Industry.
Launch Your Avalanche L1 for Automotive Industry with Cogitus by Zeeve
Zeeve has a proven track record of launching more than 15 + Avalanche L1s in the last 90 days on its own platform. So, if you want to build your own purpose-built Layer 1 chain for your automotive business, Zeeve can help, from rapid node & network setup to RPC configurations to validator node settings, integrations, and more.
We also acknowledge the fact that you would like to continuously monitor your Avalanche L1 node, the Avalanche L1 dashboard that we provide will help you continuously monitor all the activities. In addition to this, you also get the benefits of 55+ integration partners that we bring on Zeeve.
So, if you have any specific requirements that you want to integrate with your Avalanche L1 node, you can readily use them. So, if you are planning to set-up your next Avalanche L1 node, we are here to help you.
Write to us your requirements or set up a one-on-one call with our experts, where we can show you an Avalanche L1 demo.
