Applications of Blockchain in Ridesharing

Ridesharing and carpooling are becoming increasingly popular in large cities that suffer from traffic jams and congestions.

Cab aggregator services have capitalized on this trend by providing cab sharing options to its users. The concept of vehicle sharing can be improved upon further by implementing blockchain in ridesharing services.

Implementing blockchain in ridesharing removes intermediaries and allows for direct transactions between the rider and the driver. It has the potential to get more people to adopt ridesharing, which is beneficial financially and also environmentally. The use of blockchain in ridesharing can not only benefit but also completely disrupt the market.

How Implementing Blockchain in Ridesharing is Beneficial

Blockchain is the principal driver for boosting ridesharing services. Implementing blockchain in ridesharing is going to change the way the industry works completely. The following are the advantages of using blockchain technology in ridesharing services:

1. Peer-to-Peer Ridesharing

Today's cab service providers use a centralized strategy to carry out their operations. Each service provider has its terms and conditions which the driver and the rider must comply with. Moreover, the process of booking cabs is requires intermediaries like third party payment platforms, and this lack of transparency leads to more problems. The blockchain is a decentralized ledger where all the information is stored on computers all around the world which can be accessed and traced publicly. Built into the ledger is a mechanism that allows participants to do business with each other and minimizes the need for trust between each other. The need to go through an intermediary is eliminated. Blockchain allows for short or long term vehicle leasing between two parties involved directly. Users can look up for rental services based on their needs without being dependent on intermediaries and choose accordingly. Users can also rent their vehicles out and connect with people in need directly.

2. Customer Identification

Due to the availability of data on a public platform, it provides for a transparent rider and driver verification. Users can be assured of the identities of individuals availing or providing services on platforms using blockchain technology. Blockchain helps in curbing identity theft as it provides strong cryptographic keys for security against potential attacks and data manipulation. People can be assured of identities while renting out or hiring of vehicles.

3. Secure Payments

Blockchain can be used to sign digital contracts and make payments directly between the parties involved. The most crucial advantage of blockchain being direct payments between the parties involved, without the need of a third party payment gateway. Blockchain-based services use cryptocurrencies for transactions. This eliminates the need for real cash and third-party payment platforms for carrying out the transaction.

4. Data Security

The use of blockchain technology can protect ridesharers’ info from data pirates. The resulting platforms serve as blockchain-based Uber or Lyft alternatives. On these platforms, the information is stored on a decentralized ledger. This information can be accessed only by Dapps (decentralized apps) that facilitate transactions between drivers and riders. This way, there’s no central database to be hacked. Many ridesharing apps like based on blockchain technology are pushing the ridesharing industry forward.

The use of blockchain in ridesharing helps bring all the stakeholders involved in the ridesharing platform closer. It will pave the way for a secure and efficient ridesharing service. There, however, is a need for a comprehensive blockchain framework policy that would regulate and encourage people to adopt a blockchain-based ridesharing system.