Revolutionizing the Used Car Market: Eliminating Fraud and Adding Trusted Vehicle History with dNFTs

[GENERAL] Name and surname of main applicant

Alejandro G. Martin

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Individual

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

10

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

We propose:

1. A system that tracks and stores immutably the most important information of each vehicle (Odometer, Accidents, Repair Log, Ownership Log) relying on dNFTs
2. Marketplace with no intermediaries

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

Yes

[GENERAL] Please provide here more information on the open source status of your project outputs

Our Team embraces the principles of transparency and collaboration inherent in open source projects. While we believe in sharing the knowledge and advancements achieved during the development process, we have decided to retain control over the core codebase to maintain the integrity and security of the platform.

Consequently, the TradyCar project outputs will be shared with the community under a read-only license.

By adopting this approach, we strike a balance between openness and responsible development, ensuring that TradyCar remains a robust and trustworthy solution for all stakeholders involved.

[METADATA] SDG rating

SDG Goals

12 - Ensure sustainable consumption and production patterns

13 - Take urgent action to combat climate change and its impacts

SDG Subgoals

12.5 - By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse

12.7 - Promote public procurement practices that are sustainable, in accordance with national policies and priorities

Key Performance Indicator (KPI)

12.5.1 - National recycling rate, tons of material recycled

12.7.1 - Degree of sustainable public procurement policies and action plan implementation

[SOLUTION] Please describe your proposed solution.

1. HOW WE SOLVE THIS?

We propose to solve the problems named before by utilizing Blockchain technology and the benefits it provides. Cardano Blockchain technology enables us to store a vehicle's previous history (such as services, repairs, insurance, pollution check events, etc.) in an immutable and transparent manner.

1. OBJECTIVES

 

We have clear objectives and goals to which we aspire to reach, which are presented in the following points:

 

• We track and store a vehicle's previous history, and users can access this information anytime and free of charge. People need to have all the accurate information about the vehicle to make a fair purchasing decision.

 

• We establish a decentralized marketplace where users can bid on second-hand vehicles without intermediaries.

 

• We utilize dynamic NFTs to keep the vehicle's history updated. These NFTs contain updated hashes of the data stored on the IPFS.

 

• To protect the negotiation phase from fraud, we implement an Escrow contract that locks the NFT ownership until the buyer makes the payment and verification is completed. If the transaction is not successful, the NFT returns to the seller.

1. PRODUCT DESCRIPTION

We can explain our product by dividing it into two parts or services offered:

=> Firstly, we have created a System that stores immutably the information of each vehicle.

 For this, we use the benefits provided by blockchain technology and specifically dynamic NFTs. Using IPFS, which is nothing more than a decentralized storage service, we can create a secure and efficient system for tracking the ownership and the complete history of vehicles including Odometer data or accident data.

By associating a dynamic NFT with each vehicle, each User in the market could easily access, in a totally public and free way, verified information about each car they are interested in. Whether it is the owner tracking of that vehicle, vehicle mileage, maintenance, etc... everything is recorded and verified by the OEMs (official factory), or official mechanics of the brand.

 

 

=> As a second part of our service, we offer a Dapp that represents a MarketPlace that allows users to buy and sell vehicles directly by exchanging the associated NFTs. With this Dapp, we are able to connect the seller and buyer directly, eliminating the intermediaries. We also integrate an Escrow contract function, in which the NFT with the ownership of the physical car is blocked for a limited time until the buyer makes the payment and it is verified. Until this verification is passed, the Nft is not sent to the new owner.

 

1. MAIN GOAL

Our main goal with this product/project would be to achieve a standard at European level (working together with the European government) to require manufacturers to apply the tracking application of the history of each car that we propose with our project.

This would be a big step to put an end to fraud in the second hand market and more importantly to help the environment. This is because the fraud regarding the condition of the car, makes new users use a car that they think is in good condition, but in reality is polluting more than it should.

Other alternatives for our product would be to sell this set as a Saas to large manufacturers such as Mercedes, Volkswagen, Audi, etc ... or large companies that are leaders in the used car market, so our company would be responsible for the implementation and adaptation to each brand and their needs.

5. TECHNICAL OVERVIEW

The project comprises two Smart Contracts. The first Smart Contract is designed for dynamic NFTs, which are used to represent each vehicle and store the historical data associated with it. The second Smart Contract handles the marketplace functionality, allowing users to list their NFTs for sale or place bids as buyers.

 

Additionally, we have a front-end interface that enables customers, as well as official organizations, to interact with the Smart Contracts. This interface facilitates seamless communication and engagement with the system.

 

I.             Dynamic Nft Contract Structure & Functionality

 

The NFT contract we have created includes:

1. Wallet addresses of entities (OEMs, Official Repair Shops, Owners) who have permission to add or modify information about the vehicle.

2. A data structure that holds valuable information about the car, including the odometer reading, manufacturer metadata, repair worklog, and a track record of accidents.

3. Enum of States, indicating the possible states that the NFT can have, such as "Reviewed," "UpdateRequired," or "UnderReview."

4. Functions required to create new NFTs, update the information in the data structure, and change the state of the NFT.

 

 

To ensure the accuracy and credibility of the information contained in each vehicle's NFT, the owner of the Smart Contract must be the OEM (Manufacturer), and only the owner of this Smart Contract has the right to mint new NFTs. The code specifies this condition to restrict the execution of new NFTs to the owner only.

 

The process of creating a new NFT is as follows:

 

• The manufacturer deploys the NFT Smart Contract and becomes the owner of that contract.

• The manufacturer creates a new vehicle and initiates the creation of a new NFT.

• To create the NFT, the manufacturer sends the main information of the vehicle (VIM, Model, color, Date of production, etc.) to IPFS to obtain a URI. This information cannot be modified.

• The IPFS URI is stored in the "Vehicle Struct," specifically in the "ManufacturingMetaData" section.

• The other sections of the Struct are initialized to 0 (in the case of "odometer") or left empty (in the case of other sections).

• The Odometer, Repair/Inspection Log, and Accidents Tracking sections will be updated by authorized entities.

• Once the vehicle is sold for the first time, the OEM is responsible for transferring the ownership of the NFT to the buyer's address.

• The OEM also assigns the authorized entities/wallet addresses that are allowed to update the vehicle's information.

 

During the update process, we leverage the full potential of the Dynamic NFT. It only stores IPFS URIs in the Vehicle Struct, meaning that heavy data is not stored on the blockchain but rather on IPFS.

 

Thanks to this design, using functions included in the NFT code such as updateOdometer() or updateRepairLog(), which can only be executed by authorized entities, we can modify the IPFS URI stored in the NFT to a new one with updated and verified information from the OEM or official repair shop.

 

The process of updating an NFT is as follows:

• The owner takes the car for an official inspection.

• The relevant inspection is carried out.

• The OEM or official repair shop sends the updated odometer reading, repair log, and accident tracking information to IPFS.

• Once the new IPFS URI with the updated information is created, the functions updateOdometer(), updateRepairLog(), and updateAccidentTracking() are executed.

• These functions allow for the replacement of the old URI with the new one.

• This way, the NFT of the car is updated and tamper-proof.

 

Note: Nowadays, cars have high computing capabilities. Data such as the odometer reading could be automated, allowing the car itself to interact with the contract to update the odometer value. Alternatively, a layer of data security could be built to verify that the information provided by the official entity matches the data stored by the car itself, thus preventing potential intentional fraud.

 

 

II.           MarketPlace Contract Structure & Functionality

 

This contract enables users to sell their vehicles by listing them in the Marketplace smart contract. For this purpose, the smart contract includes typical functions found in this type of contracts, along with the addition of a "Escrow contract" system: listItem(), makeOffer(), cancelItem(), or returnItem().

The interaction with the MarketPlace smart contract works as follows:

• The user intends to list their NFT/car for sale.

• The user executes the listItem function, which adds a new item to the list of vehicles for sale.

• The item includes the NFT's ID associated with it, the seller's address, the price set by the seller, the selling status (open to bids or not), and the buyer's address (if any).

• Once created, buyers who wish to purchase a vehicle make their offers by calling the makeOffer function.

• Sellers can reject or accept the bids by calling the rejectOffer or acceptOffer functions, respectively.

• The acceptOffer function changes the state from Open to Closed.

• Subsequently, the NFT is automatically sent from the seller to the MarketPlace smart contract and locked there until the buyer completes the payment.

• Once the payment is confirmed, the NFT is sent from the MarketPlace smart contract to the buyer's address.

• If the payment is not completed, the returnItem function transfers the NFT back to the seller and resets the item struct as open to bids.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community.

The success of our project/solution TradyCar can bring significant value to the Cardano community in several ways, for instance:

• We are solving a Real-World challenge in the automotive industry, demonstrating the practical benefits of blockchain technology. This success story can contribute to increased adoption of blockchain solutions and inspire other developers and entrepreneurs within the Cardano community to explore innovative solutions for different industries.
• By addressing fraud and mistrust in the second-hand car market, we promote the core principles of trust and transparency, which align with Cardano's values. This could bring more users to the Cardano Blockchain.

Quantitative and qualitative metrics can be employed to measure the impact of Our Project on the Cardano community:

• Measure the number of users adopting the TradyCar platform on the Cardano blockchain.
• Track the volume and frequency of transactions conducted through the TradyCar marketplace.
• Analyze the growth of the decentralized marketplace, including the number of listed vehicles, successful transactions, and the diversity of participants.

To share the outputs and opportunities of our project effectively, we could ensure regular updates with the Cardano community and beyond through key social media channels like Twitter, Reddit, and the official Cardano forums. Share noteworthy project milestones, highlight new partnerships, and communicate any positive developments to keep the community informed and engaged with our progress.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

It is time to talk a little about me and why I am the right person to lead this project.

My name is Alejandro G. and I am a freelance blockchain developer with great experience in the sector. I've been working for more than two years in different projects based on Ethereum, Polygon or Arbitrum.

A year ago I became interested in the Cardano blockchain and the benefits it offered me compared to Ethereum, such as high security when developing the source code, avoiding bugs that are very common in Ethereum. Also, very low fees in comparison with ETH. For this reason, I acquired several certificates from the Emurgo Academy, as well as from the Cardano foundation.

This project that I propose to you today, has been weighed and designed entirely by myself.

In the white paper that I add as a link, I explain in detail the architecture of the project and even the structure and functions that each Smart Contract must incorporate.

Therefore I am in the best position to lead this project and make it real. Obviously, I'm going to need human resources to be able to provide the high standard I'm looking for.

[Project Milestones] What are the key milestones you need to achieve in order to complete your project successfully?

Project Initiation and Design:

Objective: Establish the foundational elements required for the successful implementation of the project:

1-Smart Contract Development Kickoff: Review and finalize the architecture of both the decentralized NFT and the smart contract including the marketplace. Finalize the first prototype of the Front-end for the marketplace.

2-Conduct a thorough examination of the legal prerequisites concerning privacy, specifically addressing the storage of historical data from each car on the blockchain. It is imperative to ensure compliance with GDPR regulations in Europe to uphold data protection standards.

Timeline: 1 month

Smart Contract Implementation and System Testing

Objective: Complete the development of both smart contracts using Plutus and finish the testing phase to ensure functionality and security.

This will be the longest and most important phase of the project. Our team must make sure that the functionalities we integrate are the right ones and that there are no bugs in our code. Therefore, not only the code creation phase is important, but even more the testing phase, in which thorough tests will be carried out to check that there are no bugs.

Timeline: 7 month

Platform Launch with Alpha Release

Objective: Prepare for the official launch of TradyCar, making it accessible to a limited number of users and allow them to test the platform and provide feedback.

With this step, we can address any issues or bugs, and repair it before official launch.

Timeline: 1 month

Full-Scale Operation

Objective: Once our project is finished, including the alpha phase testing, we will have reached the final launch phase. 

In this phase, our first and main goal will be to make our system become a standard for the automotive market at European level. For this purpose, meetings will be arranged with members of the European Parliament to show our system that guarantees to eliminate the fraud that we are suffering today, also clearly benefiting the fight against climate change.

Other alternatives for our product would be to sell this set as a Saas to large manufacturers such as Mercedes, Volkswagen, Audi, etc ... or large companies that are leaders in the used car market, so our company would be responsible for the implementation and adaptation to each brand and their needs.

Timeline: 1 month

[RESOURCES] Who is in the project team and what are their roles?

Head of the project & FullStack Blockchain Developer ⇒ Alejandro G. Martin: https://www.linkedin.com/in/alejandro-guindo-mart%C3%ADn-973ab2246/

Plutus Developer ⇒ We are currently in the process of selecting a developer specialized in Plutus for this project. Unfortunately, we are not yet able to provide the name of the winning candidate.

As third party: Legal support company to comply with the legality of our service in Europe.

Our team roles and responsibilities for the project are:

=> Blockchain Development - Alejandro G. and (Plutus Developer)

=> Frontend Development - Alejandro G.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.

Milestone 1: Project Initiation and Design ⇒ 20.000 ADA

The allocated budget will be utilized for essential activities such as comprehensive project planning, refinement of the existing white paper architecture, and engagement with third-party legal experts for an in-depth analysis of regulatory requirements.

Milestone 2: Smart Contract Implementation and System Testing ⇒ 60.000 ADA

This allocation is primarily for the design and development of the both Smart Contracts, which includes costs associated with coding, testing, and initial debugging.

Milestone 3: Platform Launch with Alpha Release => 5.000 ADA

These budget goes to organize groups of alpha test users to gather feedback, and use the feedback to refine our platform.

Final Milestone:

Full-Scale Operation + Meetings with European Parliament + Marketing => 15.000 ADA

We will need a final budget to promote our service and achieve our primary goal of becoming a standard system that will transform the automotive market at a European level. 

NOTE: The project team is committed to responsible fund management, ensuring the project remains within budget while successfully reaching its pivotal milestones.

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

We've calculated the projected costs by taking into consideration standard rates associated with software development projects. This estimation carefully considers both the time requirements and the level of expertise needed for each phase. Additionally, we've accounted for potential expenses related to unforeseen complications or delays that may arise throughout the development and testing processes.

The success of our project/solution TradyCar can bring significant value to the Cardano community in several ways, for instance:

• We are solving a Real-World challenge in the automotive industry, demonstrating the practical benefits of blockchain technology. This success story can contribute to increased adoption of blockchain solutions and inspire other developers and entrepreneurs within the Cardano community to explore innovative solutions for different industries.
• By addressing fraud and mistrust in the second-hand car market, we promote the core principles of trust and transparency, which align with Cardano's values. This could bring more users to the Cardano Blockchain.

[IMPORTANT NOTE] The Applicant agrees to Fund Rules and also that data in the submission form and other data provided by the project team during the course of the project will be publicly available.

I Accept