Benefits by simplifying car leasing process by using blockchain and distributed ledger
In a nutshell
carchain is a decentralized platform that enables secure, fast and transparent processing of car leasing contracts. We introduce utilization of blockchain technology to sore car leasing records and maintain a single version of car leasing true data. Each interaction is auditable, transparent, and secure, and will be recorded as a transaction on carchains distributed ledger. Moreover, no privacy or confidential data is lost in this process. carchain is built on the permission based architecture which allows varying access levels.
Blockchain technology allows for decentralized peer to peer interactions that can be recorded and verified without central authority. At it’s core, blockchains are a network of peers that manage a shared database that is distributed among all of it’s participants called a distributed ledger. They use complex cryptographic algorithms to keep records of everything that happens on them and ensure the ledger is not tampered with. This makes blockchains phenomenal for processes integral to leasing objects, such as auditing information and verifying who owns the leasing object at which time.
- In the traditional scenario, we can already see some potential problems:
Multiple ledgers. With multiple ledgers, it gets difficult to figure out who owns what and when ownership gets transferred.
- Slow updates. Since each participant in the network has its own ledger, synchronization isn’t achievable real time.
- Error-prone updates. Without having smart contracts, each participant relies on its own business processes to update the ledger. Having no central authority, this could lead to errors.
Future State with carchain
With blockchain involved, this is how the network would look like:
The car leasing network gets some benefits with blockchain:
- Shared ledger. The ledger is now an append-only distributed system of record shared across all participants in the business network.
- Smart contracts. Smart contracts are business terms embedded in transaction databases and executed with transactions.
- Permissions. Viewing permissions are defined for each participant in the business network to ensure privacy.
- Consensus. All participants in the business network agree to network verified transactions.
- Efficiency. Transaction times and data synchronization is reduced from days to near real time. Overhead and intermediary cost reductions.
- Reduced risk. Risk of tampering and fraud is reduced with transaction certifications and signatures.
In addition permissioned ledger access is one of the key things that define blockchain.
- Transaction certificate (Tcert) and enrollment certificate (Ecert)
- Tcerts are disposable certificates, typically used once. These are requested from the Transaction Certificate Authority.
- Tcerts are derived from long-term identity Ecerts.
- Only the Transaction Certificate Authority in the blockchain network can link Ecerts and Tcerts.
- Permissioned interactions
- A market consumer shares public Tcert to a market provider.
- A market provider invokes smart contracts, but signs with the provider’s private Tcert for authentication and encrypts with provider and consumer Tcerts for subsequent access.
- Market consumers can subsequently access ledger data using their private key.
- Smart contracts
- Smart contracts can be signed and encrypted to verify and secure contract details.
- Signing is by a contract owner/author.
- Encryption ensures only validators can see and execute smart contracts.
“Permissioned ledger access is all about transaction identity privacy.” —Anthony O’Dowd, IBM
What’s the big difference?
With blockchain, you get smart contracts, shared ledgers, permissioned access, and secure and efficient transactions among other things. Consequently, having blockchain in the network adds one very important element that makes all the difference — trust.