Blockchain-Based Carpooling and Vehicle Borrowing using Smart Contract

Abstract

The increasing reliance on centralized ride-sharing structures, and exposes users to risks such as system failures and privacy breaches. manipulation, single points of failure, and privacy violations. In addition, high commission fees imposed by such platforms reduce the net earnings of drivers and compromise fairness within the ecosystem. To address these inefficiencies, this project introduces a decentralized vehicle borrowing system and carpooling, based on Ethereum Compatible blockchain and smart contracts. The proposed platform eliminates intermediaries by allowing KYC-verified drivers, passengers, and vehicle owners to interact directly, thereby building trust and operational transparency. All ride postings, bookings, car borrowing transactions, and agreement verifications are recorded immutably through smart contracts. Identity proofs, vehicle documents are cryptographically signed through MetaMask and uploaded via a decentralized file system (IPFS), ensuring authenticity and wallet-to-user binding. For drivers who borrow cars, temporary verification is enabled after signing a smart-contract-based agreement linked to the vehicle's verified owner. To maintain decentralization without depending on an administrator, the system introduces a Global Dispute Center where only users who fulfill certain predefined conditions—having verified their identity—can participate in resolving concerns through a voting process. This decentralized decision-making process enhances fairness and trust. Additionally, a structured post-ride rating system builds mutual accountability and trust among participants, while integrated CO₂ tracking encourages environmentally conscious behavior. Together, these features help minimize traffic load, support conscious travel habits, and build a reliable, user-governed mobility system that is secure, transparent, and environmentally supportive—functioning entirely without any centralized authority or administrative oversight, thereby ensuring long-term sustainability. To address these limitations, this project proposes a blockchain-powered peer-to-peer carpooling and vehicle borrowing system that enables direct interaction between passengers, drivers, and vehicle owners without intermediaries. The platform utilizes smart contracts to automate agreements, MetaMask for secure authentication, and IPFS for decentralized storage of essential records. By shifting operational control to users, the system enhances transparency, fairness, and reliability in transactions. Conventional mobility services also face issues such as opaque processes, inefficient dispute handling, and limited mechanisms for conflict resolution. Drivers often lose a substantial portion of their income to service fees, while users lack trust in centralized decision-making systems. Furthermore, minimal emphasis is placed on promoting environmentally responsible travel practices. Motivated by the need for an open and community-driven mobility platform, this research aims to establish a distributed ecosystem that eliminates third-party dominance and ensures tamper-proof record keeping. The system incorporates KYC-based digital identity verification, smart contract-enforced agreements, decentralized dispute resolution through voting, and CO₂ emission tracking to encourage sustainable transportation. The scope of the project includes enabling secure ride booking, vehicle borrowing under verified ownership, and democratic dispute resolution among verified users. By leveraging distributed networks and digital wallets, the platform presents a scalable and sustainable alternative to centralized ride-sharing models.