Secure Decentralized Carpooling Application Using Blockchain and Zero

Knowledge Proof

Saksham Goel

, Sarvesh V. Sawant

and Bhawana Rudra

Department of Information Technology, National Institute of Technology Karnataka, India

Keywords:

Decentralized Application, Security, Privacy, Blockchain, Zero-Knowledge Proof.

Abstract:

Blockchain extends its reach far beyond cryptocurrencies such as Bitcoin, encompassing a broader spectrum

of applications. It acts as a transparent, distributed, and unchangeable ledger where every participant in the

network possesses a copy of the blockchain. This decentralized system secures all data and transactions

through encryption, ensuring reliability. The key components of blockchain-based applications include Smart

Contracts, which house the application’s logic and operate on the blockchain. In traditional carpooling sys-

tems, centralized authorities like Uber or Ola control the entire process, collecting and managing data from

both drivers and riders. However, by leveraging blockchain and smart contracts, a more secure and private

carpooling system can be established, allowing riders and drivers to connect directly without intermediaries.

Blockchain applications encounter challenges, primarily related to scalability and privacy. Every node in the

system processing transactions limits scalability. Moreover, the practice of publishing all data at each node

for processing raises privacy concerns. To tackle these issues, an approach using non-interactive proofs for

off-chain computations can enhance efﬁciency. This approach veriﬁes correctness without exposing private

data, thus improving privacy. ZoKrates, a toolbox, simpliﬁes this process by providing a domain-speciﬁc lan-

guage (DSL), compiler, and generators for proofs and veriﬁcation of Smart Contracts, streamlining complex

zero-knowledge proof tasks and promoting their adoption.

1 INTRODUCTION

PeerPool is an innovative carpooling application in-

spired by companies like Uber and Lyft, but with

a signiﬁcant difference (Schaller, 2021). It utilizes

blockchain technology to establish direct connections

between drivers and passengers, eliminating the need

for any third-party applications. Uber and Ola, along

with similar third-party agencies, possess compre-

hensive information about their drivers and riders,

which raises concerns about potential privacy viola-

tions (Kapassa et al., 2021). There is a possibility

that these companies could exploit the data to their

advantage or even trade it with other ﬁrms. Unlike

traditional ride-sharing platforms, PeerPool removes

the middleman, represented by Uber and Lyft, thereby

avoiding the 25% commission they charge (Ganapa-

thy and Easaw, 2017). By decentralizing the process

and employing trustless smart contracts, PeerPool en-

sures that user data is securely stored and accessible

https://orcid.org/0009-0008-5280-658X

https://orcid.org/0000-0002-6183-4653

https://orcid.org/0000-0001-7651-3820

only by the respective individuals. This decentral-

ized approach addresses the issues that large corpo-

rate ride-sharing services often overlook. PeerPool

operates as a decentralized application (DAPP) with

automated peer management, allowing for virtually

no middleman fees. Additionally, the system’s use

of trustless contracts helps resolve disputes and shifts

legal liability away from the gig workers (Prieto et al.,

2022).

P2P carpooling technology leverages blockchain

veriﬁcation to establish trust among drivers and rid-

ers, guaranteeing the authenticity and authentication

of all users (Prieto et al., 2022), (Houerbi et al., 2023),

(Ben-Sasson et al., 2015). The concept of car-sharing

systems has garnered signiﬁcant interest as a potential

solution to urban transportation challenges. However,

conventional car-sharing systems encounter security

issues due to their centralized structure and commu-

nication through public channels (Puthal et al., 2018).

To tackle these concerns, this research introduces a

secure and decentralized model for a car-sharing sys-

tem, combined with a robust authentication method,

providing a decentralized sharing service for genuine

260

Goel, S., Sawant, S. and Rudra, B.

Secure Decentralized Carpooling Application Using Blockchain and Zero Knowledge Proof.

DOI: 10.5220/0012701400003705

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 9th International Conference on Internet of Things, Big Data and Security (IoTBDS 2024), pages 260-267

ISBN: 978-989-758-699-6; ISSN: 2184-4976

users (Kapassa et al., 2021). The proposed approach

utilizes blockchain technology to ensure the accuracy

of service information and deliver a decentralized car-

sharing service. Furthermore, the system uses user

pseudonyms to safeguard user privacy, rendering it

challenging for potential adversaries to access actual

user identities even if the stored information is com-

promised (Tafreshian et al., 2020). Although P2P us-

ing blockchain is effective in car-sharing rides, some

private details must be shared leading to security

breaches between users and drivers. Thus, in order

to preserve the privacy of users consuming carpool

services, we propose to use a Zero Knowledge Proof

(ZKP) based Blockchain which will ensure that the

privacy of the users’ data is not compromised. Also,

there might be a case where a passenger might cancel

the ride when the driver arrives at the source. This will

cause loss to the driver. To compensate for this loss,

we propose a feature of security amount. This fea-

ture also covers the loss of the passenger if the driver

cancels the ride.

This paper provides an update on the ongoing de-

velopments within the realm of Decentralized Car-

pooling. Furthermore, it outlines the approach we uti-

lized, speciﬁcally the incorporation of Zero Knowl-

edge Proofs in this Peer-to-Peer (P2P) Application.

Following the presentation of our attained outcomes,

the paper discusses the conclusions drawn, and it

concludes with some recommendations for future re-

search endeavors.

2 LITERATURE SURVEY

Peer-to-peer (P2P) ridesharing is an economical op-

tion for transportation, particularly suitable for those

who prefer not to own a car or need to travel long

distances (Rathee et al., 2019). This trend not

only helps reduce trafﬁc congestion and parking de-

mands but also provides a more cost-efﬁcient and

eco-friendly alternative to traditional taxis or pri-

vate vehicles (Morris, 2016). Blockchain technology

brings about signiﬁcant improvements in rideshar-

ing services through various means. These include

the creation of a decentralized ride-hailing platform,

secure identity veriﬁcation, smart contract-powered

payments, transparent and traceable records, and the

introduction of token-based incentives (Gupta and

Shanbhag, 2021).

In a recent study, Uber revealed that in the com-

bined years of 2017 and 2018, there were over 5,900

incidences of non-consensual sexual assault-related

events on its ridesharing platform, including nine

assault-related fatalities (Uber, 2019). Therefore, pro-

tecting ridesharing consumers’ well-being is a crucial

concern in the on-demand transportation industry.

Blockchain is used differently based on the ap-

plication, leading to varying privacy-preserving tech-

niques (Tran et al., 2021). Blockchain technol-

ogy has the potential to revolutionize the rideshar-

ing sector by offering improved transparency, secu-

rity, and efﬁciency. By integrating blockchain into

ridesharing services, decentralized networks can be

created, connecting drivers and passengers directly

and eliminating intermediaries. Despite the advan-

tages, blockchain-based ridesharing platforms face

challenges in scalability, data privacy, security, and

interoperability with existing systems. Nevertheless,

introducing blockchain technology has the potential

to create a fair and efﬁcient ridesharing system for the

future (Dorri et al., 2017).

Numerous Peer-to-Peer Ride-Sharing Architec-

tures based on Blockchain have been developed

throughout time (Gupta and Shanbhag, 2021). The

most well-liked Peer-to-Peer Ride Sharing Archi-

tecture concepts now in existence include Block-V,

Block-VN, B-Ride, Green Ride, PEBERS, O-Ride,

Ride Matcher, etc.

Smart contracts and digital currency offer a

promising solution to streamline payment processes,

reduce fraud risks, and eliminate the need for a

centralized authority to oversee transactions (Puthal

et al., 2018). Through self-executing agreements and

a decentralized arbitration process, disagreements can

be addressed efﬁciently and fairly. To ensure the se-

cure storage and execution of these smart contracts,

the Ethereum Ecosystem is employed. This ecosys-

tem provides a robust platform for safely recording

and managing the smart contracts designed to monitor

each user’s transactions and interactions(Jahan et al.,

2023).

It has been suggested that blockchain technol-

ogy might make decentralized, efﬁcient two-sided

sharing economies, like ridesharing services, possible

(Chang and Chang, 2018). Originally used in Bitcoin:

Blockchain technology, an emerging network tech-

nology that allows consensus among networked peers

on a distributed, immutable digital record, is a Peer-

to-Peer Electronic Cash System (Nakamoto, 2008).

Future ridesharing systems might beneﬁt greatly from

the implementation of a secure, decentralized iden-

tity veriﬁcation protocol thanks to blockchain’s inher-

ent provenance and immutability capabilities. How-

ever, when sensitive user data is included, public

blockchain systems raise serious privacy issues. In

a permissionless blockchain system like Bitcoin, any

networked participant has access to the full ledger

due to its transparency-by-design features. Although

Secure Decentralized Carpooling Application Using Blockchain and Zero Knowledge Proof

261

blockchain technology provides assured execution

and resistance to censorship, its scalability and pri-

vacy are limited. Zero-Knowledge Proof (ZK) tech-

nologies, however, can be used to overcome these re-

strictions (Vadhan, 1999).

For cryptographic attestations and in the context

of blockchain-based ridesharing platforms, the zero-

knowledge property of ZK proofs plays a crucial

role in preserving users’ privacy and personal data

where sensitive information such as users’ balances

and transactions can be fully hidden from external ob-

servers (Kanza and Safra, 2018), (Ruch et al., 2020).

For example, a technologically advanced government

issues digital passports containing a person’s name,

date of birth, and both private and public keys, cryp-

tographically signed. Now, consider a scenario where

an individual needs to demonstrate to a system that

they are a citizen of a speciﬁc nation and at least

18 years old. To achieve this, they can construct a

function that takes the digital passport and a signa-

ture, signed with the passport’s private key, as inputs

(Bozdog et al., 2018). To maintain privacy and avoid

revealing unnecessary personal information, the in-

dividual can create a zero-knowledge proof demon-

strating that they possess an input that, when pro-

vided through the function, produces the validation.

Importantly, they use a different private key for this

proof, which they intend to use for future interactions

with the algorithm. If the proof is accurate and valid,

the service can verify it, and subsequently, messages

signed with the individual’s private key will be ac-

cepted as legitimate. This process ensures that the

person’s identity and age are proven without disclos-

ing any other sensitive information, thereby preserv-

ing their privacy in the cryptographic attestation pro-

cess (Bozdog et al., 2018), (M

unzel et al., 2019).

Trusted setups play a crucial role in generating the

proving and veriﬁcation keys for zk-SNARKs. In a

trusted setup, a group of individuals generates secret

information, uses it to create the necessary data, and

then publishes the data while discarding the secrets.

The ”trust” comes from the fact that once this data is

generated, no further involvement from the creators is

needed, ensuring the security of the system. Existing

blockchain-based ridesharing platforms like Arcade

City, DAV Network, Ridecoin and Jolocom exemplify

the potential of blockchain technology to transform

the ridesharing industry (Augot et al., 2022).

Currently, the Decentralized Carpool Applications

have some security concerns (Gudymenko et al.,

2020), (Li et al., 2019). For example, users have to

provide their private sensitive data like Aadhaar Card

Number (Aadhaar number is a 12-digit random num-

ber issued by the UIDAI (“Authority”) to the residents

of India after satisfying the veriﬁcation process laid

down by the Authority. Any individual, irrespective

of age and gender, who is a resident of India, may vol-

untarily enroll to obtain an Aadhaar number), Driving

License Number, etc. which is publically available to

other users of the application. To deal with this, in this

work, we have used Zero Knowledge Proof (ZKP) to

hide these sensitive details from other users of the ap-

plication. Also, many cases are there in current P2P

carpool applications where after successful booking

of a ride, either the driver or the passenger cancels

the ride at the end moment. Due to this, either one

of them has to suffer a loss in terms of time, etc. To

compensate for this loss, we have proposed a way in

which both parties have to deposit a security amount

to the smart contract’s address. On successful com-

pletion of the ride, both parties will get their security

amount back but if one of them cancels the ride, then

their security amount will be given to the other party

involved as compensation. With these proposals, our

work provides a solution to the loopholes present in

the current implementations of the Decentralized Car-

pool Applications.

3 METHODOLOGY

The combination of smart contracts, digital currency,

the Ethereum Ecosystem, and ZK Proofs has enabled

the successful implementation of a robust and user-

friendly application that revolutionizes payment pro-

cesses and dispute resolution in the transportation sec-

tor.

As shown in Figure 1, drivers will ﬁrst enter their

details in the Driver Registration section of the ap-

plication. These details include their name, contact

number, car name, hash of DL number, and the fare

they want to charge. After registration, these details

will be stored via smart contract. Next, the drivers en-

ter the ride details, i.e., the car name and the fare that

the driver will charge to go from a particular source

to the destination. Now, there are cases where after

ride conﬁrmation, either the driver or the passenger

cancels the ride at the end moment. To avoid this, we

introduced a security deposit concept where the pas-

senger will not get into trouble after the conﬁrmation

of the ride. If the ride is conﬁrmed and after that,

it is being cancelled by the driver then the amount

will be deducted from the security deposit and will

be paid to the passenger which is not available with

current riding apps. If the ride is a success, the secu-

rity amount associated with the smart contract address

will be returned as shown in Figure 1. We have con-

sidered not only the safety of the passenger but also

IoTBDS 2024 - 9th International Conference on Internet of Things, Big Data and Security

262

Figure 1: Decentralized Carpool Procedure (without ZKP).

Figure 2: Zero-Knowledge Proof Implementation in Decentralized Carpool.

the safety of the driver, i.e., the passenger should not

cancel the ride without any reason. For this, passen-

gers also need to deposit the security amount to the

smart contract at the time of booking the ride. If the

ride is called off without any reason, then the driver

will be compensated with the security amount. If the

ride is successfully completed then the payments (in-

cluding the security amounts that both parties have

deposited) get settled between the passenger and the

driver. The last step is to rate the driver based on the

experience of the passenger.

Figure 3: Only the Hash of Driving License Number will be

shown on UI.

Secure Decentralized Carpooling Application Using Blockchain and Zero Knowledge Proof

263

The use of ZKProof is to avoid impersonation at-

tacks in the network as shown in Figure 2. In the pas-

senger’s UI, only the hash of the driver’s Driving Li-

cense number will be shown, i.e., the driver will hide

his sensitive information from the public as shown in

Figure 3. The hash of the Driving License will be cre-

ated by some trusted authority. Only the divers who

have hashes generated by trusted authorities can look

for the passengers in the ﬁnd passengers section of

the application as shown in Figure 4. When the driver

arrives at the pick-up location of the passenger, then

the passenger would want to validate that the driver

who came to pick him/her is actually the one he/she

has booked rather than some anonymous vehicle, i.e.,

a vehicle that was not booked. For this, the passenger

will give the hash of the driving license number to the

driver and ask the driver for proof that the hash shown

in UI is actually associated with the Driving License

of the driver. For this, the driver will use their ZKP to

show that the hash is actually associated with their DL

number, i.e., the proof of possession of the Driving

License number he/she has. If the driver who comes

to pick up the passenger is actually the one who was

booked, then a valid proof will be given, otherwise,

an invalid proof will be given. Each time the driver

uses the proof, it will be recorded in the blockchain.

Now, if something goes wrong with the passenger and

if the use of proof is recorded in the blockchain, then

in this case, the registered driver is the culprit and the

investigation team can trace that driver with the help

of a trusted authority. If the use of proof is not there

in the blockchain, then in this case some anonymous

person is the culprit and appropriate actions will be

taken by the investigation team.

Figure 4: ZK Proof and DL Hash Input generation.

3.1 Passenger Safety Analysis

When a passenger books a ride then he/she will send

the security amount to the smart contract but not to

the selected driver. In this way, no one can predict (by

looking at the blockchain), which driver will come to

pick up the passenger. This avoids the case where

some anonymous driver (like a kidnapper) will take

over the vehicle along with the proof and kidnap the

passenger. For example in OLA, Uber, etc., the se-

lected driver may be guessed as they show in the map

the nearby drivers, so there is a probability of guess-

ing the correct driver. As the entire system works with

ZP Proof, it solves identity theft and makes the entire

system secure.

3.2 Driver Safety Analysis

A threat analysis is being performed towards the

driver’s end for the driver’s safety. When the attack-

ers know the whereabouts of the driver, then there is

a chance of harming that person. To avoid this, we

use random selection for example we have 50 avail-

able drivers, then only 20% of those, i.e., 10 random

drivers will be displayed to the passenger. So, the

probability of crime will be reduced. When the driver

veriﬁes ZK proof of the Aadhaar card number of the

passenger. Passengers will provide the hash of the

Aadhaar card number while booking the driver. Aad-

haar Card proof and DL proof will be recorded in the

blockchain which will help to trace the passenger as

well driver for the real identity. Even the Blockchain

Timestamps along with Gas will also help to investi-

gate if any crime occurs.

If any or both the proofs are not used then the in-

vestigation team will look for blockchain timestamps

at which gas transactions took place, etc. to ﬁnd the

criminal if some crime takes place.

As shown in Figure 4, using ZoKrates (a toolbox

for zkSNARKS on Ethereum), drivers and passen-

gers can get the Zero Knowledge Proof (ZKP) associ-

ated with their Driving License Number and Aadhaar

Card respectively, i.e., each Driving License Number

or Aadhaar Card Number has a unique proof mapped

with it. This input and proof will be generated by the

Driver/Passenger for veriﬁcation using the Hash pro-

vided by the Trusted Centre. These proofs are used

by the drivers as their identiﬁcation when they reach

out to the passengers and vice versa.

4 RESULTS

Decentralized Carpool, a ride-sharing platform lever-

aging public blockchain technology and Zero-

Knowledge Proofs, anticipated several key beneﬁts

for its users. First and foremost, it upholds a strong

commitment to privacy and conﬁdentiality. By utiliz-

ing the inherent security features of blockchain, this

IoTBDS 2024 - 9th International Conference on Internet of Things, Big Data and Security

264

Carpooling application named Connexion, shielded

the user data and ride history from unauthorized ac-

cess and ensured that personal information remains

hidden from third parties. By employing blockchain

technology, the platform eliminated intermediaries

typically found in traditional ride-sharing setups such

as Uber, leading to reduced transaction fees. This re-

duction in overhead costs resulted not only in offer-

ing competitive prices for riders but also provided fair

compensation to drivers. Another crucial aspect of

Connexion’s vision is an improved user experience.

The platform has an intuitive and user-friendly inter-

face, making it easy for users to register themselves,

search, and book ride effortlessly. While delivering

a seamless experience, Connexion emphasized safe-

guarding user privacy and security. Through diligent

assessment and an unwavering focus on meeting user

needs, Connexion attempted to revolutionize the ride-

sharing industry while setting new standards for pri-

vacy, security, and affordability.

On successful completion of the ride, all payment

transactions get ﬁnalized. This includes the settle-

ment of the security amount. As shown in Figure

5, if the proof is associated with the driving license

then the veriﬁcation is successful as shown in Figure

6. But as we can see in Figure 7, if the proof is tam-

pered with and used for identiﬁcation purposes, then

the veriﬁcation fails as we can see in Figure 8.

The extensive security analysis shows that the pro-

posed protocol is safeguarded against various threats,

including impersonation, stolen mobile devices, of-

ﬂine password guessing, replay, and man-in-the-

middle attacks. Key features of the protocol include

anonymity, conﬁdentiality, and mutual authentication,

as conﬁrmed through informal security analysis. A

comparative analysis with related schemes demon-

strates the efﬁciency of the proposed protocol, mak-

ing it suitable for integration into blockchain-based

car-sharing systems.

5 CONCLUSION

The future potential of Blockchain technology holds

tremendous promise, particularly in revolutionizing

the ride-sharing system by addressing its current chal-

lenges. One of the key advantages of this technology

lies in its consensus-based approach and check instru-

ment, which enables the creation of a permanent and

veriﬁable blockchain record. By doing so, it effec-

tively prevents issues like double-spending without

the need for intermediaries, fostering a decentralized

setup. By implementing a trustless and transparent

system, P2P ridesharing using blockchain technology

Figure 5: Driving License hash and its associated ZK Proof

entered for the veriﬁcation.

Figure 6: Successful Veriﬁcation when hash and ZK proof

are associated with each other.

Figure 7: Driving License hash and altered ZK Proof en-

tered for the veriﬁcation.

Figure 8: Failed Veriﬁcation when hash and ZK proof are

not associated with each other.

brings forth a more secure and trustworthy platform

for both riders and drivers. An essential aspect of

this technology is its ability to establish a decentral-

ized network, eliminating the need for intermediaries

and reducing costs for passengers while simultane-

ously increasing proﬁtability for drivers. This shift

to a peer-to-peer model with the implementation of

Secure Decentralized Carpooling Application Using Blockchain and Zero Knowledge Proof

265

Zero Knowledge Proofs not only streamlines the pay-

ment process but also enhances data security and pri-

vacy for all participants. As this technology contin-

ues to evolve, its impact on the ride-sharing indus-

try is expected to be transformative, reshaping the

way we commute and enhancing the overall trans-

portation ecosystem. While the tamper-resistant na-

ture of Blockchain enhances security and reduces

data revalidation time, it also comes with drawbacks.

For instance, the presence of fake requests in the

Blockchain system can disrupt communication and

burden the organization, posing challenges to main-

taining consistent security and privacy due to the

large volume of Blockchain data. To ensure the suc-

cessful implementation and widespread adoption of

Blockchain technology in ride-sharing and ITS, care-

ful consideration of its limitations and potential secu-

rity concerns is imperative.

6 FUTURE WORK

An application can be developed that leverages the

powerful Google Maps API to display optimal routes

between two given points based on their latitude and

longitude. Additionally, the application cleverly in-

corporates the Web Geolocation API, enabling it to

determine the user’s precise location on the decen-

tralized web platform, thus enhancing user experience

and convenience. Scalability is a key consideration in

the system’s design. As the application’s popularity

grows and trafﬁc increases, the system needs to dy-

namically adjust various parameters to ensure smooth

functioning. Market-related Trends can be shown to

the users. One such feature is the implementation of

a sophisticated price-suggesting algorithm, empower-

ing users to gain insights into price ranges and com-

pare them with the drivers’ suggestions. This fea-

ture aims to provide greater transparency and con-

venience for users during their journey-planning pro-

cess. Time-locked deposit contracts, bioinformatics

security features, etc. can be further enhancements in

this work. These additional features hold the potential

to further enhance the system’s integrity, security, and

overall efﬁciency.

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