The first idea I had many years ago consisted of simple polarized filters in the path of the headlight's beam on one car and another filter either attached to driver's glasses or the windscreen of an oncoming car. The thought was the light from the headlight would be filtered by the glasses and yet leave unobstructed view all around the light source.

Apparently, I was not the only one thinking about this, as this has been tried and met with some success.

With the relatively recent advent of high power LED technology being employed as vehicle headlights, we have the ability to modulate the light output and synchronize it with an electronic LCD shutter.

As it happens, active shutter LCD glasses have been available for a while for use with 3D TV sets. Their operation consists of receiving a signal from the TV which tells the glasses to either darken the left or the right LCD lens in sync with different images on the TV. This results in each eye seeing a different image and the brain interpreting the 3D effect. The shutter opening and closing happens at a high rate so the eye only sees smooth motion with some dimming.

The idea is to use this existing technology to sync with a signal from the oncoming vehicle such that when the oncoming car's headlights (car A) are on for a few milliseconds, the lenses in the glasses of the other driver (car B) will be off and blocking the light. When headlights on car B are switched on, car A's lights will be off and driver's glasses in car A will be on and allowing light through.

Thoughts:

Handshake protocol:

Suppose we use an RF signal. We could encode an auto-negotiation protocol to let each car know what the other is doing.

Security:

To prevent nefarious hacking and sending a signal to turn off the headlights of a car, the switching would take place continuously at the hardware layer. The headlights are always being switched at 120 Hz and the only job of the RF negotiation signal is for timing purposes.