The transparency of events along with the renter and owner of via the Blockchain is itself a major enabler for increased efficiency, reduced risk of fraud, lower cost. Exchanging information related to these events in a distributed ledger facilitates trigger events that need to take place to rent and return bike.
The use of smart contracts to not only trigger events but actually carry them out automatically represents a bold evolution that is being actively explored by a few today. Smart contracts are self-executing computer codes that automatically carry out functions once a triggering event has taken place. It is a linear contract that can include multiple parties (investors, borrowers, buyers, sellers etc.) and that cannot be altered (EBA Association, 2016).
With a smart contract, stipulations are embedded in the computer code, which enables the automatic execution of functions defined by a legal contract. It also provides protection against duplicate bike renting, as the contract will not allow for a bike which is being rented available for renting at the same time.
A smart contract, therefore, acts as an application layer that is built on the Blockchain. The development of the Blockchain that supports the smart contracts we are developing is already built and readily available and globally known as Ethereum Virtual Machine ‘EVM’ in a number of countries.
CBS will be decentralised distributed and eventually open source cryptocurrency tailored for the peer to peer marketplace. Let's see the actors:
Owner issue new bike on the platform for rent.
Token holder rent available bike on the platform.
The platform administrator approves and manages owner bikes.
Bike owners list their bike on the network. When owner issuing bike on the network, he must provide bike information such as model, make, years, colors, and locations.
Administrator will approve or reject the listing based on the information provided. When listing approved, bike owners will be given 2 things.
New CBS token wallet address to accept payment from renter.
Bike renter will need to buy smart bike lock from us which embedded a unique code to unlock the bike.
A sticker will be sent to you with your rating (please see rating) to be displayed on the bike.