EFFICIENT CARPOOLING DAPP USING BLOCKCHAIN

CHAPTER 1
INTRODUCTION

1.1 Background
For the past few decades, Blockchain is revolutionizing every major industry with distinguishing
properties and not just with the financial sectors. Researchers are trying to explore the problems
where blockchain can fit in and provide exceptional services. Crowdfunding, Insurance,
Healthcare, Governance, Energy are few major domains where blockchain is already
progressing. For the past few years sharing economy has seen exponential growth. For example,
Ola, Uber, Airbnb, Lyft will witness the same. It enabled users to share their assets with others
who do not possess them and require them. Sharing of resources will reduce wastes and
promotes a lot of people to participate. However, most transactions of sharing economy
applications happen on a centralized platform with a third party. The transaction can be an
information exchange or payments. Centralized mode of transactions is susceptible to threats like
password hacks, misusing of customer data and has increased cost and efforts in maintaining it.
One of the best contributors to sharing economy can be shared transport services i.e. taxi rides.
Currently, Uber, Ola, and Lyft are leading their way in ride-sharing systems. Almost all
ridesharing applications use a centralized approach. But, having a centralized system in ride-
sharing services has many downsides like surge fee, convenience fee, GST, payment gateway
charges, etc. Thus there’s a need for better approaches. One such solution to overcome the
downside of the centralized approach is a decentralized, peer-to-peer approach in the ride-
sharing process.

1.2 Blockchain

Blockchain is a peer-to-peer, distributed ledger technology that progressed from Bitcoin, a

cryptocurrency developed by Satoshi Nakamoto in 2008. The overwhelming success of
Blockchain is due to its distinct properties like distributed, decentralized, immutable, secured,
and shared. Every transaction in the blockchain is recorded and anyone in the network can access
and verify the transactions. As it follows a peer-to-peer(P2P) model blockchain eliminates the

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need for intermediaries. Adapting Blockchain in a smart city can lead to various benefits like
security, transparency, trust-free, and automation. A smart city aims in improving the standard of
living and creating a sustainable environment through Information and Communication
Technology (ICT). The conjunction of Smart city and Blockchain can improve the performance,
efficiency, security, and smartness of the environment. The most commonly used distributed
ledger technology is Blockchain. It organizes the data into several blocks interconnected with
each other. Blockchain systems are of three different types: public, private, and consortium. A
public blockchain is permission-less and anyone being in the network can see and make
transactions, validate them and manage the shared ledger. Bitcoin and Ethereum are examples of
the public blockchain.
Whereas private blockchain is a decentralized yet centralized network possessed by a single
entity. A consortium blockchain is also a private network that handles cross-organizational
transactions.

1.3 Ethereum
Ethereum is a public and permissionless blockchain introduced by Vitalik Buterin. Ethereum is
built with Turing complete programming language and overcomes several limitations of
Bitcoin’s scripting language difficulty. Transactions on Ethereum are done by Smart Contracts.
Smart contracts are nothing but executing some set of predefined rules when certain conditions
are met.Transactions in Ethereum are cryptographically signed instructions. The fee for these
transactions is paid as Ether. Ether is the built-in currency of Ethereum. Apart from payment
Ether is also used as a pricing instrument for running DApps in the system. Ethereum defines
cost for every computation in the form of Gas. These instructions are executed by Ethereum
Virtual Machine (EVM) running in every node of the network. Some of the potential domains of
Ethereum are Insurance, File Storage, Market Predictions, FinTech, etc. However, one of the
significant use-cases of Ethereum is Decentralized applications (DApps) which will be discussed
in depth in this paper.

1.4 Smart contract

A smart contract based on the Ethereum blockchain is a cryptographic bundle that takes and
processes inputs, writes outputs, and stores information. The public can access the output only

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when some predefined conditions are met [7]. Kevin Delmolino et al., have explained a step-by-
step procedure of implementing a smart contract in their Safe Smart Contract. The smart
contracts generate bytecode at compilation and are stored in blockchain. These byte codes are
run by EVM which is running in each node of the network [9]. Solidity is the most common
programming language in creating smart contracts. Solidity is derived from C++, JavaScript, and
Python. Smart contracts enable the solidity code to run as decentralized applications on a
blockchain system. Smart contracts are considered the backbone of decentralized applications .

1.5 Decentralized Applications (DApp)

DApp is a decentralized application hosted on a P2P blockchain network. Ethereum hosted
DApps on different domains like Insurance, Energy, Finance, Health, and many more. But, many
of the DApps are only partially decentralized. The properties of DApp are characterized as,

 Open Source: DApp codes are open source and audit from a third party is possible.
 No single-point Failure: Due to its decentralized nature no central point of failure.
 Consensus: To enable transparency consensus among the nodes is inevitable.
 Currency Support: Internal cryptocurrency is the major factor that runs the ecosystem of
any decentralized application.

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CHAPTER 2

LITERATURE SURVEY

The aim of this paper [1], they propose a blockchain-based ridesharing framework utilizing
brilliant agreements to alleviate the single purpose of disappointment issues introduced in
traditional customer worker structures. In any case, other than being totally disseminated what's
more, straightforward, the receptiveness of blockchain prompts a potential security concern
where the information can be openly open. In spite of the utilization of mysterious verification,
this isn't adequate to secure the protection of the end clients. For example, by following the
action of a driver or rider, an aggressor with little foundation information on that client can sort
out the entirety of his area follow. Additionally, since in open blockchains, anybody can join and
execute in the organization namelessly, malignant client can upset the blockchainbased ride-
sharing assistance by sending, for occasion, various solicitation/ offers while not focusing on any
of them. Thusly, it is needed to monitor driver’s practices and fabricate a standing framework
that helps a ride to choose with certain a fitting driver for his ride demand. Therefore, to
decentralize ride-sharing administrations in an important manner, security worry with regard to
ride-sharing should be deliberately assessed and tended to. This predominantly requires setting
two clashing targets/i.e., (i) the longing to have a straightforward framework while securing
client protection, and (ii) guarantee responsibility while being unknown .

The aim of the paper [2] is to manage the on the web/dynamic ride-sharing way arranging issue
for PV frameworks, they proposes an answer based on a restricted potential quest territory for
every vehicle to sift through the solicitations that abuse traveler QoS imperatives, for example,
diversion, in this way, the worldwide hunt is decreased to a nearby inquiry also, the
computational unpredictability is diminished. It additionally considers the solace of travelers
(e.g., holding up time and diversion) and the complete travel distance of PVs. In this way,
travelers can make the most of their distributed ride-imparting administrations to forfeiting a
little ride comfort. Additionally, the proposed arrangement can be effectively reached out to the
future worldwide ideal calculation (if it will exist) to speed the calculation time where all the
planning can be changed just if the traveler has not been gotten.

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This article likewise investigates the decrease proportion of computational multifaceted nature
utilizing the proposed arrangement. The reenactments dependent on Manhattan taxi
informational collections assess the computational productivity of the proposed arrangement.

This paper [3] they introduced BlockV, a design which follows these four standards and gives a
vigorous end to end arrangement. The method of employing a vehicle includes a arrangement for
a passage against a ride, a reasonable installment instrument reasonable to all and a decentralized
framework that guarantees reasonable, trusted, savvy exchanges. The framework which is being
followed as of now is the application based vehicle imparting to many incorporated workers
observing each part of the ride. The decency in current situation is trusted to be actualized by the
fundamental specialist organizations, however not certain from the rider end. This sort of trust
based framework makes disappointment as the internal computational techniques are not
unmistakably known to rides. Thus, the vehicle sharing to be broadly acknowledged by all class
of individuals, have appreciated the part of decentralized companion to peer organization of
blockchain BlockV as the foundation of the design. The inspiration driving BlockV is first and
foremost to guarantee the payment fairness where the separation of the passage i.e , the cost of
the ride for a specific way is calculable by any companion of the organization with the way
subtleties. Besides, we present the ridefairness where on account of any debate, tended to by the
rider, the pernicious driver or the vindictive rider (in the event that of bogus charge) will be
punished. BlockV works together with the Road Side Units (RSUs) to accomplish
reasonableness in this regard.

This paper [12] computer vision, machine learning and decentralized technologies pave the way
towards a future where, without humans in the loop, autonomous systems would be able to really
communicate. Though self-driving technologies are a prime example of this phenomenon in its
infancy. RiderS, a new privacy-first decentralized self-driving ride-sharing ecosystem, is
proposed in this paper and consists of everything required to allow autonomous/self-driving
vehicles to participate in a decentralized ride-sharing economy. RiderS relies at its heart on a
self-sovereign biometric solution that leverages machine vision through a privacy-first biometric
authentication algorithm to register and authenticate users. In order to support a self-sustained
ride-sharing ecosystem, we then recommend a new decentralized architecture.

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This paper introduces a new geo-aware consensus algorithm for proof-of-matching, which is
used to verify and reward self-driving vehicles. The main idea is that each vehicle uses its built-
in computing resources to help validate transactions in order to keep the ecosystem under control
while being paid for the job. Experimental results show that can perform about 10K Matches per
second (KMs) using an NVIDIA Jetson AGX Xavier development kit. This analyzed the privacy
aspects as well as the accuracy of our biometric solution with good matching rates. In addition, it
assessed the efficiency and scalability of the proposed consensus algorithm and compared it to
similar blockchains based on proof of work that produced promising results. Using reported
statistics from Uber, it modelled the ride-sharing ecosystem and demonstrated that it can support
Uber-scale ride-sharing through a what-if simulated exercise using our geo-location conscious
consensus algorithm. RiderS, a novel privacy-first self-driving ride-sharing ecosystem, was
introduced in this paper. The ability of systems to perform a proof-of-matching algorithm is at
the heart of this ecosystem, which involves matching bloom filter data at high rates. This paper
showed that, using embedded GPUs, it can achieve around 10K matches per second (10KMs) per
node. We observed a true positive matching rate of 94.29 percent, while maintaining well over
98.68 percent rejection rates for users attempting to authenticate with other seeds of sommeone.
When replacing proof-of-work with proof-of-matching, it also conducted a what-if analysis. This
has shown that geo-location can certainly help increase the blockchain's scalability. Further
scalability tests of the consensus algorithm, a bidding marketplace for cars, as well as a look at
the economics of the ecosystem are included in future work. In order to improve the privacy
intensity of the solution, it is also important to find an optimum combination of bit difference
and matching speeds.

In this paper [14] propose a new ride-sharing model in this paper, where each driver needs that
when sharing with a passenger, the shared route percentage (SRP, the ratio of the shared route's
distance to the total traveled distance of the driver) exceeds her estimated rate (e.g., 0.8). This
takes two versions of this dilemma into account.

The first takes several drivers and several riders into account and tries to quantify a collection of
driver-rider pairs in order to optimize the overall SRP. As the maximum weighted bigraph
matching issue, model this issue. This implies an accurate, precise algorithm and an effective
approximate solution with an error-bound guarantee.

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The second takes multiple drivers and a single rider into consideration and tries to find the top-k
drivers with the highest SRP for the rider. They develop pruning methods and suggest a best-first
algorithm to gradually pick drivers that are highly likely to be in the top-k performance.

In this paper [15] One of the famous e-commerce operations, the E-auction, enables bidders to
bid the goods directly over the internet. As for sealed bid, for the intermediaries, the extra
transaction cost is required because the third party is the essential position between the buyers
and the sellers during the auction to help trade both. Moreover, it never guarantees the
confidence of a third party. To address the issues, the low transaction cost blockchain technology
is used to build the public bid and sealed bid smart contract. The smart contract, proposed in
1990 and implemented through the Ethereum blockchain, will ensure that all transactions are
registered in the same yet decentralized ledgers to ensure the bill is secure, private, non-reputable
and inalterable. The smart contract consists of the auctioneer's address, the start time of the
auction, the deadline, the current winner's address, the current maximum price. The accounts are
generated in the experiments via the Ethereum wallet. In the miner point, the MinerGate is used
to receive cash to pay the transaction fee in the miner process. The blockchain nodes are
synchronized at the recorder level to create smart contracts. This paper offers a blockchain-based
E-auction system to ensure confidentiality, non-repudiation, and unchangeability of electronic
seals. In carrying out this work, also expect to face possible challenges. In the implementation of
this job, the expect to encounter possible problems. In smart contracts for sealed orders, the
bidders and bidders come because of the complexity of the deal, say they can call the wrong
contract feature. For eg, to open all bids, the bidder unintentionally calls Reveal(), so that the bid
must be terminated and re-arranged. It will set the authority judgment for various functions for
this purpose and will execute the function before first deciding if the caller can perform this
function.

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CHAPTER 3

PROPOSED SYSTEM

One of the major problems of the P2P ridesharing system is the ride-matching problem. Any
ridesharing system's ability to direct drivers to passengers in the most efficient way is a
distinguishing attribute. Any flexible ridesharing system must be prepared to provide an optimal
solution to ride-matching problems. Some of the algorithms which give an optimal solution to
ride-matching are greedy heuristic optimization, meta-heuristic optimization, Exact formulation
and heuristic solution, decomposition algorithm, and dynamic programming. Here we solve the
matching problem by using a min matching algorithm to match riders requesting rideshare to
save total travel distance. The main aim is to make it time and cost effective so that both the rider
and driver share benefits.

3.1 Proposed Architecture

The system architecture of the proposed ride-sharing system is shown in Figure. The ride-sharing
system operation starts at the user level, followed by the user interface module, then the
computational module, and finally the module for allocation of riders. The user interface module
allows users to request rides using the smart phone application that we have developed, while the
module collects all necessary information including the location and destination of the riders.
After collecting all the necessary information, they are sent to the computation module. The
computational module receives data both from the user interface module and from the allocation
module for rides and store the information in a database. The data are then used in a ride
matching program.

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Fig 3.1 System Architecture

On the other hand, the rides allocation module is responsible for sending the location and
destination of the driver (vehicle) to the computational module and subsequently after a
successful match, the module receives notification of providing ride-sharing service to the rider.
Note that for a successful matching, the proposed ride-sharing system is subjected to some
constraints, such as (i) the number of existing riders of a vehicle does not surpass the number of
available seats at any instant, (ii) both the rider and driver share the same destination and at the
same time a rider’s location is along the same traveling direction of a driver, and (iii) these
constraints yield explicit point-based incentives for both riders and drivers.

3.2 Matching algorithm

Matching is a concept in mathematics, graph theory in specific. Matching is a group of edges

without any common vertices in an undirected graph. For this ride-sharing problem, an
undirected graph is formed with passengers being the nodes and their sharing plan being the
edges. With a maximum matching with minimum weight algorithm, it is possible to find the best
sharing plan with minimal total distance. The algorithm calculates the distance between every
two passengers is defined in different scenarios. The Manhattan distance between two passengers
is calculated as,

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(A(a1,a2),B(b1, b2),d(A,B)=|a1−b1|+|a2−b2|) …(1)

The five different scenarios in which the distance between each two passengers d (A, B) is
defined are:

i. Pick up A and then pick-up B then drop A and then drop off B
ii.

d(AB)=d(1)=d(A1 B1)+d(B1 A2)+d(A2 B2) … (2)

iii. Pick up A then Pickup B then drop B and then drop A

d(AB)=d(2)=d(A1 B1)+d(B1 B2)+d(B2 A2)…(3)

iv. Pick up B and then pick up A then drop A and then B

d(AB)=d(3)=d( B1 A1)+d( A1 A2)+d( A2 B2)…(4)

v. Pick up B then pick up A then drop B and then drop off A

d(AB)=d(4)=d( B1 A1)+d( A1 B2)+d( B2 A2)…(5)

vi. A and B travel on their own

d(AB)=d(5)=d( A1 A2)+d( B1 B2)… (6)

To assure the quality of sharing vehicles, the algorithm does not allow people to share vehicles if
their total distance exceeds 25% more than their travel. Repeat the process below for all the
passengers and find the distance.
For passenger(A)

if d( A1 B1)+d( B1 A2)>1.25 d( B1 A1)

set d(1) to +∝

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if d( A1 B1)+d( B1 B2)+d( B2 A2)>1.25d( B1 A1)

set d(2) to +∝
if d( A1 B2)+d( B2 A2)>1.25d( B1 A1):

operatorname{set} d(4) to +∝

The weight of any two passengers can be: d(AB)=mind(1),d(2),d(3),d(4),d(5)

3.3 Minimum matching

A complete graph is formulated to denote passengers and their suitable way of pooling each
other once the weights of the edges are defined. Using one of the scenarios (1) mentioned above,
the matching of passengers for ridesharing is shown below. A, B, C, and D are the four
passengers and are assigned some weights. The edges are marked with the way of pooling. For
all passengers with minimum total weight, the maximum match is pair A with D utilizing
scenario 1, and pair B and C using scenario 1. The digramatic representation of rider matching
problem based an greedy algorithm is given in Figure .

Fig 3.2 Minimum Matching

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3.4 Point Reward Based Incentive System

The overview of the point reward-based incentive system is illustrated in Figure. In the context
of a smart city, this incentive system can be integrated into existing systems so that both drivers
and passengers can make full use of the collected points to purchase or redeem for any available
product or service. This point based incentive system can also boost the sales of various
products. For the incentive system, the point rewards are computed based on the following
criteria.

• Base point Pb—point to be charged for taking a successful ride;

• Point per minute Pt—point to be charged for every minute of travel within the ride;

• Point per km Pd—point to be charged for every km of travel within the ride;

• Traffic scaling factor Fts—a factor that regulates reward point depending on traffic condition
and time, e.g., traffic congestion during peak hours;

• Passenger(s) scaling factor Fps—a factor that regulates reward point according to the number
of passenger(s) in each vehicle. Hence, the point to be charged per rider Pcharge is calculated as

Pcharge = Fps(Pb + tPt + dPd )Fts … (1)

where t is the travel time and d is the travel distance. The points to be earned by a driver Pearn is
calculated as

Pearn = n=Nr ∑ n=1 Pcharge …(2)

where Nr denotes the number of riders sharing the same vehicle. The points are calculated only
when a trip is completed, which ensures the proper use of the factors.

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Fig. 3.3 Reward system model

The values of Fts and Fps are given in Table 1. When the traffic congestion becomes worse, the
value of Fts decreases, i.e., for serious traffic congestion, both riders and drivers will be
charged/earn less points. The purpose is to encourage the riders to use the ridesharing system so
that the number of vehicles entering the network gets reduced and thus, alleviate traffic
congestion.

On the other hand, the value of Fps decreases when the number of passengers to share the same
vehicle becomes more. The purpose is to restrain drivers from earning excessive reward points as
the main goal of the proposed ride-sharing system is to overcome traffic congestion rather than
creating new job opportunities. The values of Pb , Pt , and Pd are considered as 20, 5, and 10,
respectively. Note that these values are determined hypothetically to evaluate the potential
savings from the incentive (point reward) based ride-sharing system. In the future, these values
can be optimized using substantial ride-sharing data.

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3.5 Advantages of reward system

1.Encourages more people to carpool: By offering incentives, more people may be encouraged to
participate in carpooling, which can lead to a reduction in the number of single-occupancy
vehicles on the road.

2.Helps offset costs: Carpooling can be a cost-effective way to travel, but it still requires some
investment of time and money. Incentives can help offset these costs and make carpooling more
attractive to potential participants.

3.Improves environmental impact: Fewer single-occupancy vehicles on the road means a

reduction in emissions and a positive impact on the environment.

4.Reduces traffic congestion: With fewer vehicles on the road, traffic congestion can be reduced,
leading to shorter commute times and less frustration for drivers.

5.Builds a sense of community: Carpooling can help build a sense of community among
participants, as they are able to interact and get to know each other during their commutes.

6.Promotes safety: Carpooling can also promote safety on the road, as there are fewer cars and
fewer distracted drivers.

7.Enhances productivity: Carpooling can provide an opportunity for passengers to use their
commute time more productively, such as by working, studying, or reading.

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3.6 Disadvantages of cryptocurrencies

1.Volatility: Cryptocurrencies are known for their high volatility, which means that their value
can fluctuate significantly within a short period of time. This can make it difficult to accurately
price goods and services, as the value of the cryptocurrency used for payment could drop
significantly before the transaction is confirmed.

2.Limited acceptance: While the number of businesses accepting cryptocurrency payments is

increasing, it is still relatively limited compared to traditional payment methods. This can make it
difficult for consumers to find places to spend their cryptocurrencies.

3.Regulatory uncertainty: The regulatory landscape for cryptocurrencies is still uncertain in

many jurisdictions, with some countries banning their use altogether. This can create legal and
compliance risks for businesses accepting cryptocurrency payments.

4.Security risks: While blockchain technology is generally considered secure, there have been
high-profile cases of cryptocurrency exchanges and wallets being hacked, resulting in significant
losses for users.

5.Technical complexity: Cryptocurrencies and the blockchain technology that underpins them
can be complex and difficult to understand for many people. This can create barriers to adoption
and limit the number of people who are comfortable using them for payments.

6.Irreversibility: Once a cryptocurrency transaction has been confirmed, it cannot be reversed.

This can be a disadvantage in cases where a payment was made in error or if there is a dispute
over the payment.

7.Lack of regulation: Cryptocurrencies are largely unregulated, which can make them more
susceptible to fraud and other criminal activities. This lack of regulation also means that there are
few safeguards in place to protect users in the event of a dispute or other issue.

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CHAPTER 4
RESULTS

The result of implementing a carpooling Dapp using the minimum matching algorithm and a
point-based reward system would be a more efficient and cost-effective way for people to
commute. With the minimum matching algorithm, the Dapp can match riders and drivers based
on their proximity, destination, and other factors, allowing them to share rides and reduce their
travel expenses.

The point-based reward system incentivizes users to use the Dapp by offering them rewards for
carpooling. These rewards can be used to redeem discounts, free rides, or other perks.

Overall, the combination of the minimum matching algorithm and the point-based reward system
can lead to a reduction in traffic congestion, carbon emissions, and transportation costs while
promoting a more sustainable and eco-friendly way of commuting. Additionally, it can also
create a sense of community among riders and drivers, promoting social interaction and reducing
feelings of isolation during commutes.

Fig 4.1 Comparison of total fuel used by the passenger cars

in four different cases with and without the ride-sharing system.

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Fig 4.2 Total CO2 emission by the passenger cars in four

different cases with and without the ridesharing system.

Fig 4.3 Total CO emission by the passenger cars in

four different cases with and without the ridesharing system

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Fig 4.4 Summary of the ride-sharing system performance.

Fig 4.5 Comparison of monthly estimated transportation

Cost before and after using the ridesharing system

Hence with above results we can infer that the system will

 Reduce Carbon Footprint: With fewer cars on the road, the carbon footprint is reduced,
making the environment greener and healthier.
 Enhance Convenience: By using a carpooling Dapp, users can save time and money by
sharing their rides and reducing travel expenses.
 Greater Cost Savings: Carpooling through the Dapp can result in significant cost savings on
gas, tolls, and parking.

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CHAPTER 5
CONCLUSION

Carpooling Dapp using minimum matching algorithm and point-based reward system is an
effective solution to reduce traffic congestion and carbon footprint while providing a cost-
effective and convenient travel option. The Dapp is built on blockchain technology, which
provides a secure and transparent platform for users to share their rides.

The minimum matching algorithm ensures that the rides are matched efficiently, minimizing
detours and maximizing the number of passengers in a single ride. This reduces the number of
cars on the road and the overall travel time, making the commute more efficient and eco-
friendly. The point-based reward system incentivizes users to share their rides and encourages
them to participate actively in carpooling. The rewards can be redeemed for various benefits like
discounts, cashback, or donations to environmental causes.

The carpooling Dapp provides a user-friendly interface, allowing users to log in, create a profile,
and offer or request rides. The rides can be scheduled in advance, making it easier for users to
plan their commute. The Dapp also provides real-time tracking of the rides, ensuring the safety
of the passengers and drivers.

The Dapp is highly scalable and can be integrated with various modes of transportation like
buses, trains, and subways, providing a seamless and integrated travel experience. This will
further reduce the carbon footprint and traffic congestion and promote sustainable travel options.

In conclusion, Carpooling Dapp using minimum matching algorithm and point-based reward
system is a promising solution for sustainable and cost-effective travel. The Dapp's efficient
matching algorithm and incentivization mechanism provide a win-win situation for all the
stakeholders, reducing the carbon footprint and promoting sustainable travel options. The use of
blockchain technology provides a secure and transparent platform, ensuring the safety and
privacy of the users. With the increasing need for sustainable travel options and the growing
popularity of blockchain technology, carpooling Dapp has a bright future and can play a
significant role in shaping the future of transportation.

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