Carpayment - CPM - Bitcoin

CARPAYMENT 24 - CPM

Abstract

While some industries are happily reaping the rewards of brand-new technology, there’s some still stuck in limbo between traditional and new methods of production; the auto industry. With the schanging behavior of customers, the new technological landscape, and the demand we see for digitalization, the automotive and digital worlds are hurtling towards one an other and will soon converge.

In 2017, just like in decades gone by, the vehicles are the main source of income for auto makers and traders. However, auto companies are having to develop their services and introduce data - driven entities; with the customer as the central focus, the two will need to combine as one digital ecosystem. Even with the demand for connectivity and digitalization, powertrain technologies seem to be taking priority. Every day, the automotive and technology-centric businesses seem to trade blows and take some level of control from the other.

Furthermore, there is an important distinction to be made regarding customer and vehicle data. For customers, they’re generally willing to share data on their vehicle; more willing than they are when it comes to behavior data. Of course, this process requires trust and many executives are now allowing customers to have an input into what happens to all data.

Despite popular belief, the goal shouldn't be to bring the automotive and digital worlds up to a similar speed of innovation. Instead, the goal should be to create a superordinate platform that allows both to thrive while integrating all downstream and upstream elements. Nowadays, a car needs an ecosystem; to balance the power between end consumer s, there’s now a need for an independent virtual cloud ecosystem.

In the long term, could the digital ecosystem lead to more revenue than the hardware of a vehicle? According to 85% of executives, they believe this will happen so it will be interesting to see what happens (or perhaps how and when it happens!).

Bitcoin and Ethereum

Bitcoin is the first popular application of blockchain technology. Bitcoin Network, is also known as blockchain 1.0, basically a distributed journal system with distributed dispersion mechanism available. With UTXO technology, although it is possible to write programs to run on Bitcoin networks, Low-level UTXO programs are very limited in capability. That is the programming environment.

Tuning is incomplete, and very difficult to use. As a result, the Bitcoin network is a essentially distributed ledger system that records bitcoin transactions, Only very few applications are developed by the community. Project Ethereum aims to build Blockchain 2.0. By adding a virtual machine Turing-complete (called Virtual Machines Ethereum, or EVM), Ethereum Blockchain desired into "the computer of the world" through the support of third-party scripts called Contract. Intelligent to move token / cryptocurrency between accounts when satisfying some conditions certain (for example, one of the use cases is to make a Smart Contract a role margin account). Contracts that are intelligently implemented by the Ethereum node follow realtime. This result is authenticated and saved to the blockchain by the diggers (or checkout) correspondents In addition, Ethereum also supports the Distributed Application Concept (also known as DApp), which runs side-by-side In addition to blockchain, you can call the Smart check option in the blockchain. In a typical setup, DApp can be a web application, providing a user interface for the corresponding Smart Agreement.

Smart Deal Better

As the first generation technology, and for the reasons of scalability / performance we mentioned above, Ethereum EVM and DApp are hard to use. We strive to greatly improve the EVM and related software blocs, so that this application is more developer friendly and available more ready for business.

- Smart contracts often need to be triggered by events outside the blockchain. In Ethereum, this requires an "oracle" to provide status information Defined and competent about the outside world. Oracle is a forward looking solution Because it is not standardized and is subject to change, the Smart Agreement does not Are known.

- Smart contracts can only be loosely coupled with DApp middleware. Since you are not "knowing" what is available in DApp, Smart Agreement can not Calls to any software component in DApp. Due to programming difficulties Comprehensive rules when using the Turing-complete programming language, most of them

- Smart contracts only implement simple business transaction rules. Unable to package and reuse DApp middleware. Developers DApp Make decisions about architecture and write disposable applications.

- DApp middleware is not integrated with the incentive system death of blockchain. DApp nodes must contribute significant amounts of computer resources, but can not receive electronic money as a reward. This has led to DApp gain. Enterprises operate in a centralized manner

1. Global Automotive Industry

1.1 Statistics & Facts

77.7 million is the predicted figure that Global sales of passenger cars are said to reach in 2017. China alongside the United States is regarded as the biggest automobile markets globally, both in regards to production and sales. In 2016 alone, around 6.9 million passenger cars were sold and a further 4 million were manufactured around that same period. Since Ford introduced its Model T which it mass produced and assembled in the early 1900s, the United States has since become an important player in the automotive market.

In addition to re-emerging automotive industries in Germany, Sweden, Poland, UK and a host of other European Union member states, it is believed that customers in North America and Asia will cause a surge in demand for cars. This increase will eventually make up for plummeting vehicle sales volume in Brazil and Russia, and will further boost the automobile manufacturing company’s sales by over 77 million vehicles by the end of 2016. Which is 54 million units more than the period between 2000 and 2013.

Car manufacturers have identified the robustness of the Asian Market where the demand for passenger vehicles have more Than doubled in the last seven years and are keen to take advantage of this fact to increase the global sale of cars.

In India and Indonesia, car sales have continued to steadily rise between the period of 2008 – 2016. While in China, vehicle sales have more than quadrupled to an astonishing 24.4 million vehicles in 2016. Not only has China clinched the title as the continent’s leading auto mobile producer, they are also the number one manufacturers of light vehicles.

Chinese joint ventures and top producers such as General Motors or Volkswagen were among the foremost producers of passenger vehicles in China. It is anticipated that automakers will carry out unprecedented investment program in a bid to improve their businesses not Just in India and China, but also in emerging markets as well. However, odds are high that there will be an increase in the saturation curve in all of these markets.

1.2 Car manufacturers based on revenue

Toyota and Volkswagen are leading the pack in the context of revenue and vehicle sales globally. Toyota, after recording little to no increase in revenues in the past three years, experienced a substantial rise in revenue. Likewise, Volkswagen followed closely behind in second place. In spite of being dragged into a diesel emission scandal, the German automaker somehow managed to cheat their way out of a revenue dip and increased their income to around 240 billion U.S dollars in the 2016 fiscal year. A rise from around 236.6 billion U.S dollars in the 2015 fiscal year.

Before the diesel emission scandal, the global automotive industry was dealt a blow by the 2008- 2009 financial crisis, and the North American automaker announced that its around 91 billion U.S. dollar bankruptcy in the heat of the crisis. Apart from China, in 2009, most passenger car sales fell in most markets. Dongfeng, Geely, Chang’nan, BAIC and a host of other Chinese manufacturers are beginning to sever their ties with their joint venture partners from other parts of Asia and the Western world. However, it is still unclear if Car manufacturers from China will make a mark on the global automotive market just like their Chinese counterparts that manufacture trucks and heavy equipment.

1.3 Guide to the Used Vehicle Market

According to recent statistics, nearly 39 million cars were sold on the used car market in 2016 alone; compared to figures in 2015, this is relatively consistent with a slight increase of 0.5%. Although the number of trade-ins decreased, franchise used sales grew three times quicker at 1.5%. However, certified pre-owned vehicles were the big winners with a boost of 3.5%. With this in mind, they now take up around 23% of all franchise used vehicle sales.

What about pricing? In 2016, the average actually increased by 3.4% to $19,200 and this is a recordhigh. Among other reasons, the biggest contributing factor to this was the age of cars being sold. Last year, nearly 60% of all sold vehicles were younger than three years old. If we were to look elsewhere, we’d find older cars retaining their value for longer and an increase in demand for SUVs and trucks contributing to the trend.

How did consumers deal with this? First and foremost, they looked for fnancing and this was helped along by low interest rates and longer loan terms. Thanks to simple supply and demand, the reduced number of trade-ins could have also contributed to a price hike in the 5-10-year range.

Despite this, the 2014 leasing volume increase by over 10% which has led to a healthy supply of ‘nearnew’ vehicles

1.4 Shortcomings in the Second-Hand car

Within the goods market, the second-hand goods niche recently received the lowest overall score. In particular, the scores regarding trust were especially low and this is caused by asymmetric information; this niche has been last for trust three years running now. Additionally, the second-hand car market found itself at the wrong end of the table for ‘issues experienced by consumers’.

In fact, we have some statistics to prove this:

- Around 40% of all issues were reported within one month of buying the vehicle.

- Over 40% of consumers said they experienced at least one issue in the first year of ownership.

- 20% of all who complained did not receive a solution; the lack of a guarantee makes this industry poor with regards to fixing issues.

- Less than three in ten people had their biggest issue fixed by a guarantee.

- One in four people 25% experienced ‘unfair commercial practices’s uchas false advertisement.

- Furthermore, there’s also a huge problem currently regarding the information pertaining to all vehicles. For consumers, they’re having to make decisions from a lack of information and this is summarized below.

- Mystery shopping results show that just 5% of traders provide consumer rights information willingly.

- An average of 24% said they didn’t receive any information, verbal or otherwise, relating to maintenance costs, CO2 emissions, safety/security, consumer rights, car mileage checks, and a history of accidents.

- Up to 19% of people couldn’t remember if they received the above information.

- Commercial guarantees were offered by 62% of traders but the level of coverage varied greatly.

- Guarantee percentages were vastly different between EU13 (41%) and EU15 (66%).

- Just over 20% of all traders informed mystery shoppers that the commercial guarantee was in addition to the legal guarantee/consumer rights.

   + over 40% of all issues were reported within one month of buying the vehicle

   + 25% experienced ‘unfair commercial practices’ such as false advertisement

   + 24% said they didn’t receive any information about car

2. Automotive Industry Future Developments

Recently, the majority of executives in a questionnaire said that the digital ecosystem will lead to higher revenue figures than the actual hardware in the automotive value chain. However, who is actually tapping these revenues?

2.1 The Rise of the Digital Ecosystem

As the main source of revenue begins to shift from the car itself, all current drivers will need to be reevaluated as well as identifying new value drivers accurately; this leads to a better integration into the strategy. Considering data is a key to all digitalization, this will be essential for the automotive industry and all manufacturers must realize this quickly.

According to one automotive executive, one connected vehicle will bring in more revenue than ten nonconnected cars and this perhaps shows the power of the niche. However, it also shows that using unit sales to determine market share is an outdated process. Not only will connected cars yield more income initially, it does so over the entire lifecycle of the car. Therefore, we must adjust how we measure success in the coming years. Suddenly, data and customer value will take the baton and become the key criterion.

“76% absolutely or partly agree that one connected vehicle generates higher revenue streams than 10 vehicles which are not connected”

In terms of the business model required in the industry, last year over eight in ten executives believed there would be a major disruption in the near future. This year, the rate seems to have increased even further and research could suggest we’re in the middle of the change right now. Rather than a small ‘adjustment’, it’s a huge change and this is shown with digital ecosystems surrounding mobility; more than just improving efficiency, an efficient ecosystem could change the ecological footprint of all future mobility. Most importantly, this will lead to an increase in personal miles traveled, more efficient allocation of resources, and more efficient usage.

“Measuring success based on unit sale is outdated. Management according to product profitability is over – customer and data value will become the core focus” Dieter Becker, Global Chair of Automotive

For most companies, they’re finding success in collaborating with names from the converging industries. How do we know this? Cross-sector cooperation has increased significantly over the past twelve months. As online companies make moves offline, business models and core competencies will blend.

2.2 The Relationship Between Data, Security, and Trust.

Within the automotive industry, data will be essential moving forward and executives have noted a change in focus on creating value from downstream and upstream data; only 4% of executives disagreed with the ‘data as fuel’ theory. For OEMs, they will make money with the digital ecosystem as well as the hardware of their vehicles. As we move forward, this increases revenue for all OEMs because they can sell specialized products and services for the vehicle right across its lifecycle.

According to some sources, 2025 is the magical date where OEMs can generate revenues using the monetization of downstream and upstream data. Although the practicalities of the theory still need a little work, executives believe all OEMs should be able to earn money with data. Since they’ll own customer relationships, make all units independent from the various other operating systems that exist, and manage all customers in the car’s life cycle, data can be utilized efficiently.

For Moritz Pawelke, Global Executive for Automotive, all relevant user information will need to be integrated with an ecosystem for each car. To monetize data and create value, eight in ten executives agreed that a car will need a unique operating system. This being said, the majority of vehicle data systems will be provided by third-party systems.

“A car will need its very own ecosystem. An independent virtual cloud ecosystem is needed to balance the power between end-consumers, digital tech giants and traditional ‘o_ine’ hardware companies like auto manufactures" - Mortiz Pawelke, Global Executive of Automotive

2.3 Compensation for Data?

Despite all the details we’ve covered sofar, we haven't answered one of the most important questions of all; who actually owns the downstream and upstream data generated from a vehicle? For most tech and automotive companies, they rely on customers being willing to hand over data in return for small rewards. Unfortunately, this isn't the case for everybody as many consumers believe the data belongs to them. Considering 45% of executives don’t see a need to offer compensation for data, this information has gone unheard so far across over half of the industry.

+ 45% of executives still believe that they need no offer anything to consumers in exchange for their data

+ 84% of consumers want direct monetary benefits in exchange for their data

For all future business models, they’ll need to answer all customer’s worry of losing data for absolutely nothing in return. If we look back just two years ago, around 30% of people were fine with losing data and not seeing any compensation. Now, this figure has reduced to 20% because consumers realize their data is valuable. In fact, more than ever are asking for direct monetary rewards and this could happen which would result in an increased total cost of usage (TCU) and decreased total cost of ownership (TCO). Throughout the lifecycle of the customer experience, research also suggests a need to benefit from an individualized experience.

As we move through time, it seems as though data privacy and security is quickly becoming then key component. For the purchasing criteria that existed in the past, this is quickly losing ground with data security and privacy taking center stage; this is something on which executives and customer agree.

Every year, customers are looking for a more extensive experience which means an increase in CARPAYMENT 13 customer-oriented products and services through digital platforms. For the companies, all interaction can be monitored and the collection of data can occur. In the long-term, this allows data security and privacy to become the prime focus in all purchasing decisions regarding mobility.

3. Carpayment Platform

3.1 General information

The purpose of the project: Creation of a blockchain-based platform and ecosystem, which are based on digital information about vehicles.

The Carpayment platform creates a digital "twin" of the vehicle and provides a number of services that are based on the register of information about the use of the vehicle. The register will contain the complete reliable history of the vehicle and will refiect:

- The original manufacturer's equipment (Car model, Engine size, etc.);

- vehicle characteristics at a particular time (Age, Mileage, Fuel consumption, etc.); maintenance history;

- all parts replacement history;

- history of all installed additional equipment;

- roadworthiness inspection history;

- diagnostic results (obtained either at the service station or during maintenance);

- owner history;

- vehicle accident history;

- criminal history of the vehicle (hijacking, theft, damage, means of committing crime, physical evidence, being tracked, pledged);

- insurance history;

- data on the style of driving, emergency calls, vehicle system errors and other information collected using smart telematics, which are increasingly integrated by vehicle manufacturers.

The listed information is valuable because it is useful for a large number of different users of the Carpayment ecosystem. This provides the potential for development of the system.

Storage and handling of information in Carpayment will be ensured by modern decentralisedn technologies: distributed file system (IPFS) and blockchain (Ethereum based). The permanence and accessibility of information in the blockchain will establish trust between the parties of the ecosystem and confirm the authenticity of the information received from the registry.

The Carpayment ecosystem economy is also based on blockchain. Carpayment token (CPM) is an CARPAYMENT 14 ERC20-compatible token issued on the basis of the Ethereum platform. Smart contracts supported by Ethereum will be actively applied in the Carpayment platform in the part of the functionality where decentralisation allows for anonymity, security and authenticity of information.

3.2 Car payment users

The Carpayment ecosystem is unique due to the fact that the information in the digital "twin" of thevehicle is useful for a large number of the ecosystem participants. All participants can be divided into two overlapping categories: the participants that enter the information in the register and the participants using the information from the register.

Only members listed in smart contracts can enter information. Entering of information is only possible with a digital signature.

3.2.1. The members supplementing the Carpayment register

- Car manufacturers. Entering information on new vehicles and their equipment.

- Car services and service stations. Entering information about roadworthiness inspections, repairs, diagnostic results.

- Authorised roadworthiness inspection stations. Entering information about roadworthiness inspections passed and diagnostic results.

- State vehicle registration authorities. Entering information on vehicle owners.

- Internal affairs state authorities. Entering information about vehicle being involved in accidents and crime.

- Insurance companies. Entering information about insurance issued for the vehicle.

- Built-in vehicle smart systems. Entering information in accordance with their purpose and technical functionality

3.2.2 System participants receiving information from the register

- Car manufacturers. Receiving statistics and data on the operation of vehicles, including breakages. This information is useful for the revision and improvement of production models (economic benefit).

- Car services and service stations. Using diagnostic results for identifying the causes of failure. Determining the need to replace the consumables on the basis of data about past replacements and vehicle usage.

- State vehicle registration authorities. Using the information to determine the authenticity of the VIN code.

- Internal affairs state authorities. Using the information for the investigation of cases involving vehicles.

- Insurance companies. Receiving data to calculate the cost of vehicle insurance (personalised offers).

- Potential buyers. Receiving a full and reliable history about the vehicle they are about to buy.

3.3 Motivation for participation

Blockchain is a decentralized and equitable system of economic incentives, forming long -termmotivation for better intellectual performance, thereby enhancing the effectiveness of the technology and its benefits to society.

Why would members of the Carpayment ecosystem share information? The fact is that the current automotive business model cannot remain as it is. Data and information play an increasingly important role and services provided on the basis of these data can yield higher profits than vehicle production.

Presently there is a need for a digital platform that enables the provision of services re lated to the operation of cars.

Carpayment is the platform that the car industry needs.

Participation in Carpayment will eventually lead to the use of the platform being much more beneficial for users than if they abstain from it.

Functioning of the Carpayment platform is associated with additional motivation for each group of participants. This means that there are situations when it is more beneficial to enter accurate information about the vehicle into the register than false information or not entering any at all.

This incentive system will be based on:

For example, with the state authorities. State authorities enter information about transactions with vehicles and their involvement in criminal proceedings, thus obtaining useful information for the same purposes and legalizing the "grey" market.

Mutually beneficial commercial relationship.

For example, car services and insurance companies, who are rewarded for entering the information, but also pay a fee for accessing the information. The amount of rewards/fees will be determined with regard to the balance of information submitted/received. It can also be car owners who receive compensation for providing telematics information (while remaining anonymous).

Indirect benefits.

A vehicle not on the register automatically becomes "grey", the absence of its history indicates some "dark past" and greatly reduces the competitiveness of this vehicle in the secondhand market.

3.4 Services provided by Carpayment

3.4.1 Fast and reliable way of selling/buying a car

When selling or buying a car, the seller is always confronted with the issue of justifying its cost and proving the technical condition. The customer is always afraid to buy a car with hidden defects, clocked mileage, some "dark past" or counterfeit VIN code.

Carpayment gives both parties to the transaction the opportunity to obtain a full history of the vehicle and information on its technical condition, how it has been used and maintained, prove that it has not been stolen or under bond, prove that the vehicle has not been involved in an accident or, if it has been, what damage it received and how it was remedied.

Thanks to the Carpayment ecosystem, all information will already be collected in one place and its authenticity will be confirmed by the blockchain technology.

The buyer does not need to perform diagnostics or hire an intermediary company (such companies carry out a visual inspection, computer diagnostics, diagnostics at a service station,VIN verification,etc.),all the information is available and reliable. This reduces costs for both the buyer and the seller.

The process of the seller providing information about the vehicle to the buyer is implemented through a smart contract via client application or Carpayment WEB-application.

However, any car sale transaction also has a third party - the state authority registering such transactions and ownership. After agreeingon the terms of the deal, the members can carry out the transfer of ownership in the traditional way by approaching the registration authority, or use
the Carpayment platform.

In such a case, the members need to enter the transaction terms into Carpayment and complete it with digital signatures. The smart contract will then record the transaction in the blockchain, while the integration with the state registration authority enables all bureaucratic procedures for the transfer of ownership and registration of the transaction to occur in automatic mode

3.4.2 Insurance services

The Carpayment platform aggregates a large amount of information making it possible to provide "smart" insurance. Using Carpayment allows insurance companies to offer personalized insurance products.

Calculation of the cost of insurance is based on a rigorous mathematical algorithm that takes into account objective data about the car and its owner:

- technical condition,
- maintenance history,
- intensity of use,
- information on driving style,
- and diagnostic information from "smart" devices.

Subjective factors are excluded from the insurance cost calculation.

All of this allows the majority of car owners to obtain cheaper insurance because insurance companies minimise their risks and do not include the indirect costs of litigation in the cost.

Whatever happens to the car, thanks to the ecosystem, all the information is entered in the register: both what happened (whether it is an insurance event) and how much it costs to fix it (according to service station diagnostic results). Based on this information, the amount of payment in the case of an insurance event is calculated using a definite algorithm, so subjective factors are again excluded.

Automating the process of insurance based on smart contracts guarantees that the car owner will receive the insurance payment, while the insurance companies will avoid fraud on the part of car owners.

3.4.3 Vehicle repair and maintenance service search

The Carpayment platform will allow car owners to find repair and maintenance services, all at a reasonable price. To do this, place a request in Carpayment describing the necessary work and allowing the service centres to access vehicle information related to its technical condition and maintenance history.

Having access to service history and diagnostics data, the members of the ecosystem involved in the repair and service will be able to more accurately estimate the amount of work, the list of required parts, and in some cases even remotely diagnose the damage. More complete information will allow the avoidance of risks regarding the repair costs, thus reducing the cost of the service. In the meantime, smart contracts allow the avoidance of unreasonably high prices or fraud by the service station.

3.5 Benefits of the Carpayment platform

Based on Ethereum blockchain. Ethereum is a flexible, reliable and scalable infrastructure that fully implements all the possibilities of the blockchain technology and smart contracts. The smart contract code is stored and executed in a distributed way, which means the guaranteed implementation of such contracts.

Use of smart contracts. Transactions in the system, whether buying a car or purchasing insurance, are fully transparent and reliable for both sides. Smart contracts guarantee the fulfilment of the parties' obligations, eliminate human error and accelerate the transaction by getting rid of bureaucratic red tape.

Tokens as native currency. Carpayment token (CPM )is used to pay for Carpayment services. The ERC20 token format is a verified solution that ensures compatibility and ease of integration with third party services (such as exchanges and wallets) and the possibility of working with smart contracts.

Reliability and validity of the information. All information is stored in encrypted form in distributed storage, while its authenticity is confirmed by cryptographic methods based on data stored in the blockchain, thus guaranteeing the safety, invariability and reliability of the information.

Transparency while maintaining privacy. The process of entering and accessing data on Carpayment is transparent, while the use of blockchain, cryptography, digital signature system and distinct separation of access rights ensures privacy. Your data is only accessible to relevant state authorities and members to whom you have granted access.

Decentralisation. Carpayment is a decentralized system in all aspects. All layers (data storage, blockchain) do not have a common control centre. All code and data is stored and executed on equal participants of the system (nodes), thus platform development occurs with the consent of all participants of the system

Integration through API. Operation of Carpayment involved many members (car owners and buyers, insurance and leasing companies, car dealers and service stations, state authorities, smart device sub-system).A flexible API allows all participants to integrate their systems to work with the Carpayment platform.

E-government. Carpayment implements mechanisms that allow state authorities to carry out functions such as registration of transactions and the rights of ownership of vehicles using modern blockchain-based technologies, reducing the cost and time of data operations by dozens of times, there by increasing the quality of service for the sscitizens.

4. System architecture

4.1 Chart

The Carpayment platform will consist of the following components:

WEB-application. Designed for user access to the Carpayment functionality through a convenient web interface.

Data storage. All Carpayment register data will be stored in a distributed file system and encrypted. Decentralisation of data will ensure their safety thanks to multiple backup.

Blockchain.

An internal payment system will be implemented based on blockchain (the CPM token will be used as the means of payment). Thanks to smart contracts, the blockchain will also include information about a range of operations in Carpayment (transactions, the transfer of ownership rights, access to information). Another purpose of the blockchain is to store the digital fingerprint (hash) of the data from the repository. This mechanism will confirm the authenticity of any information obtained from Carpayment.

API. Designed for the integration of third-party services, custom applications and telematics devices.

Client applications. To simplify access to Carpayment functionality, multiplatform applications for different groups of Carpayment ecosystem members will be developed.

4.2 Description platform

The access point to the Carpayment system for users is the web-application. It will include:

1. The information (public) part: including description of Carpayment, knowledge base, news, tech support, etc.;
2. The functional (private) part: which is a personal user account. The functionality available in your account will depend on the role of the user (car owner, car buyer, insurance company representative, dealer's representative, etc.).

The architecture of the web application consists of front-end and back-end components, as well asa database (MongoDB), which will store the system information necessary for the functioning of the application. The back-end component interacts with the system kernel.

For quick access to the functions, usersuse mobile Carpayment apps (iOS+ Android). In order to ensure cross-platform fiexibility, the mobile applications interact with the kernel via the API.

The second purpose of the API is the interaction with applications designed for Carpayment ecosystem members (registration authorities, service stations, etc.),as well as integration with their internal information systems.

Some of the information about vehicles will be received through telematics devices (OBD II). Given the specificity of these data, the interaction with telematics devices will be implemented through a separate dedicated API, for which a set of methods will be adapted to receive the telematics data.

The base of Carpayment is its core. The core is composed of several subsystems.

Blockchain control subsystem.

Implements the interaction with Ethereum blockchain, which, alongside cryptographic methods, has a number of key functions in Carpayment.
- internal payments,
- confirmation of authenticity of the data stored in Carpayment,
- implementation of data access control by using smart contracts.

The string of operations carried out by users in Carpayment will also be stored in blockchain (e.g., transfer of vehicle ownership).

The Carpayment Blockchain Protocol and Carpayment Token Carpayment is a new blockchain protocol being developed and specifically designed and optimized for business and marketplace applications. The “fat protocol” will consist of a blockchain based “virtual machine” and defined modules of middle-layer software stacks, which operate outside the chain to support decentralized processes governed by smart contracts implemented on the network. Carpayment is the native crypto token currency being created to be integrated with and used on the Carpayment network, and on partner platforms running its applications. Initially, Carpayment is proposed to be issued and implemented on the public Ethereum blockchain as an EIP-20 compliant token. The Carpayment protocol aims to be developed on the Ethereum blockchain, as well as integrating with other base-layer chains in development. This includes the possibility of Cyber Miles utilizing its own proprietary blockchain. In the future, depending on the efficiency improvements of the Ethereum blockchain, and the development of Carpayment own proprietary blockchain, the initial Carpayment based on EIP-20 may be replaced on a 1:1 basis with Carpayment issued on Carpayment blockchain.

Data storage subsystem.

Providing interaction with the IPFS file system that allows one to safely s tore and distribute the information. In addition to that, the user data is encrypted, access is strictly limited and may be granted by the user himself/herself using a personal digital signature. The authorization and access control subsystem is in charge of this. Data on access control is stored in the blockchain and cannot be tampered with.

Analytical subsystem.

The analytical subsystem has a separate role. Since Carpayment functions are limited not only to the receipt, storage and delivery of information, the AI-based analytical subsystem is designed to find patterns of practical value in the information (for example, in the search for and the early detection of faults, a more precise calculation of insurance risks, an accurate assessment of the value of the car, finding great deals for the vehicle sale/purchase/insurance, etc.).

The second task of the analytical subsystem is preliminary control of incoming data to prevent contradictory or potentially false data from being entered into Carpayment. The third purpose is filtering the information received from the telematics devices.

Data transmitted by telematics devices are redundant and not always useful. The analytical subsystem will only be able to save the information that is valuable and can be used in the future in Carpayment.

From an architectural standpoint the listed components of Car payment make up 4 consolidated layers:
- User layer (custom applications, mutually integrated IS, telematics devices).
- API layer (API for applications and telematics).
- Application layer (Core with all subsystems, back-end web applications)
- Data store layer (blockchain, data storage, database).

Despite the availability of add-ons to the blockchain and data storage, the authenticity of any information obtained from Carpayment can be verified by the presence of an entry with a digital fingerprint of these data in the publicly available Ethereum chain, while the privacy of data is ensured by cryptographic methods, digital signatures and a system of differentiation of rights, which stores the access information in the blockchain.

5. Product demo

6. Tokens

6.1 ERC20[/color]

Carpayment is not just a service or application: it is an entire ecosystem with a large number of members and its own economic subsystem. The functioning of this subsystem is not possible without an internal currency, and the Carpayment token is used for this purpose.

The Carpaymenr token (CPM) is implemented as an ERC20-compatible token over the public Ethereum blockchain. The format of the token is ERC20. This format ensures compatibility and ease of integration with third-party services (such as exchanges and wallets), and is a proven foundation for the use of the Dapps concept and smart contracts, the use of which will partially implement the Carpayment functionality (internal payments, data authenticity verification, data access).

ERC20 is the Ethereum token standard - https://github.com/ethereum/EIPs/issues/20

Issuing of proprietary tokens necessitates the creation of an internal ecosystem economy to establish transparent and fair relations between all participants and create more efficient business model for the use of the platform.

6.2 Information on the issuing of tokens.

- Type: ERC20
- Name: Carpayment Token
- Symbol: CPM
- Total supply: 1,000,000,000

By issuing CPM tokens, we offer all members the chance to become part of the Car payment ecosystem. In the future, each holder of a CPM token will be able to receive a different level of access to platform services.

CPM tokens will be issued on the Ethereum blockchain platform according to the ERC20 protocol. A total of 1,000,000,000 CPM tokens will be issued.

The tokens will be distributed as follows:
- 5% - for buyers of tokens at the pre-ICO stage;
- 69% - for buyers of tokens at the main crowdsale stage;
- 8% - for the project founders and team;
- 10% - reserved for future needs of the system and to maintain the value of the token in the future;
- 8% - bonus programmer;

6.3 Features

The CPM tokens are the essence of the Carpayment ecosystem and will be used for the following purposes:
- payment for use of the system; payment for access to the API;
- payment of fees for the performance of certain operations in the system (e.g., vehicle registration);
- payment for access to advanced functionality of the user's account
- payment for access to analytic results, including those obtained by individual inquiries;
- rewarding the ecosystem members for entering information;
- rewarding vehicle owners for supplying useful analytic data (e.g., telemetry);

CPM tokens are not limited to the internal ecosystem and will be available for purchase/sale on the cryptocurrency exchanges. The user's personal account is automatically associated with the wallet that stores the CPM tokens. Its balance can be supplemented by purchasing CPM on an exchange for further use on the Carpayment platform.

The CPM token value will be ensured by limited emission and constant demand for the use of the system. In addition, imbalance will be eliminated thanks to a well-thought-out Carpayment ecosystem economy that ensures the circulation of CPM used both for payment and remuneration for users.

6.4 Legal status of CPM tokens

CPM tokens are tokens that are specifically designed for functional use in the Car payment platform. CPM tokens are not securities. Tokens can not be returned after purchase. CPM tokens are used to gain access to the various functions of the Carpayment platform. It should be noted that the ownership of CPM tokens does not equal ownership of shares and the holders of CPM tokens do not have any ownership, control or any other rights.

Tokens are sold as digital assets, similar to downloads of software, digital music, etc.

7. Crowdsale

7.1 Why Crowdsale

A large and varied group of investors would be needed to decentralize the Car payment platform. A smaller and more traditional group would obtain control of the network, and rather than act in the interests of the community and users, they would act in their own best interests. With this in mind, the decision was made to utilize a block chain-driven crowd sale using an Ethereum ERC20 token. This method will acquire the requisite quality and amount of funds to run the platform while achieving the vision of a truly decentralized network

7.2 Pre-ICO
- Start date: February 20, 2018 (15:00 GMT)
- End date: March 7, 2018 (15:00 GMT)
- Offering size: 50,000,000 Carpayment Token
- Exchange rate: 1ETH = 72.000 CPM
- Currency accepted: BTC, ETH, LTC, BCH
- Minimum transaction amount: 20 ETH
- Maximum transaction amount: unlimited
- Bonus system: 30%

7.3 ICO
- Start date: March 12, 2018 (15:00 GMT)
- End date April 10, 2018 (15:00 GMT)
- Offering size: 250,000,000 Carpayment Token
- Exchange rate: 1ETH =36.000 CPM
- Currency accepted: BTC, ETH, LTC, BCH
- Minimum transaction amount 0.1 ETH
- Maximum transaction amount unlimited
- Referral 5%

Bonus system:
- March 12, 2018 to March 21, 2018: 30%
- March 22, 2018 to March 31, 2018: 20%
- April 1, 2018 to April 10, 2018: 10%

7.4 Crowdsale funds distribution

The proceeds will be distributed as follows:
- 70% - development budget
- 12% - operating expenses
- 10% - marketing costs
- 5% - adviser and technical expert consultation costs
- 3% - legal service

8. Roadmap

There is only one goal for the Carpayment team: developing a working vehicle ecosystem that will provide a value return to the token holders as soon as possible.