Building a rideshare service on the blockchain, is this network safer?

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On the eve of the National Day holiday, a mobile app that is equipped with blockchain technology and focuses on ridesharing — the AlphaCar app, is launched on iOS and Android. Data from the AlphaCar rideshare platform shows that after only one week, more than 10,000 car owners have signed up, and users increase by 30% every day.

Unlike other network car companies, the number of orders a driver can take on the AlphaCar platform is strictly limited to a maximum of six orders per day. “Many so-called ridesharing platforms, the proportion of full-time drivers is very high. In order to pay the platform management fees and make a profit, they are desperately to take orders, so that they ar not much different from taxi drivers. This not only lost the original intention of part-time ridesharing, but also took up valuable road resources.” AlphaCar’s founder Bill Deng told the South+ reporter, that as a way to truly realize shared travel, the proportion of carpool is low, mainly because of insufficient incentives, resulting in unwillingness to do carpooling. There are relatively few drivers, which results in a low success rate for matching, forming a unhealthy circle.

The emergence of blockchain technology enables consumers to become owners of the company. At the same time, because the token based on blockchain technology is a digital tool of equity, which has a fixed amount and can be distributed at very low cost. This makes it possible to create a truly rideshare economy.

Rideshare platform companies such as Didi, etc., in the initial phase, use cash subsidies and other means to attract drivers. AlphaCar not only does not have cash subsidies, but also waives the traditional network car company’s main source of profit - platform fees. When the passenger pays the fare, the owner can choose to receive cash or an equivalent amount of ACAR, the platform token. This “trip mining” mechanism enables the owner and passenger to receive ACAR tokens from each shared trip, and share the profits of the Alpha platform. ACAR is a blockchain token that rewards users (including drivers and passengers) when using the AlphaCar service. The number of token is always 10 billion in total and cannot be increased.

In addition, the AlphaCar APP shows that 70% of its platform revenue (including value-added services such as auto insurance, maintenance and repair) will be distributed to all ACAR holders in cash, and the data will be disclosed daily. “The emergence of blockchain technology has made it possible for me to apply what I have learned. It also makes it possible to realize inclusive ownership and sharing at the enterprise level. The economic mechanism that only allowed dozens of people to participate in the trial application is now available to be applied in a trillion dollar market — ridesharing.” Bill Deng said. ACAR can be regarded as an encrypted digital warrant, representing the contribution and ownership of the owner in the community.

According to public information, AlphaCar is headquartered in in Zhangjiang Hightech Park, Shanghai. Its founder Bill Deng graduated from the University of Science and Technology of China and went to the United States to pursue a doctorate in economics. He studied under the father of experimental economics, Vernon Smith, 2002 Nobel laureate in economics and the originator of institutional economics, and Gordon Tullock, father of rent seeking economics. After returning to China, he served as the CIO of GAC Fiat Chrysler and Chery Group.

In September 2018, the Judicial Big Data issued by the Supreme People’s Court showed that in the course of ridesharing service, among the drivers of the network who was involved in the crime, the proportion of drivers with criminal record was 11.11%. The driver who had the criminal record of infringing the passengers is 14.29%, which nearly double the ratio of traditional taxis. The security of the network car service has become a major hidden danger in the industry.

According to Bill Deng, the AlphaCar platform also adopts double auditing and certification for passengers and drivers. The illegal behavior of any party in the service process is recorded by blockchain technology and cannot be eliminated. For the owner (driver), in addition to checking the validity of the three elements - the mobile phone number, name and identification card number, it also cooperates with the independent professional third-party information verification company in the industry to conduct background investigations, including the criminal record case, financial credit and so on. “Including whether there are frequent records of borrowing from loan sharks or loans that are not repaid. Generally, people with high financial risks have higher crime risks.” Deng Gang said, “The blockchain is a permanent record. If you do something bad, it will be recorded.” It is there, although we do not judge, but there is a great deterrent to bad behavior.”

“We don’t have venture capital’s gambling agreement and competition for entrepreneurs, and there is no platform to exploit the interests of users.” Bill Deng said that AlphaCar regards passengers and drivers as partners rather than opponents. The goal is to be the best rideshare platform.