Blockchain Vehicle Scrapping Initiative

Our project commenced with an in-depth exploration of the issues we aimed to address. After extensive research, we identified a critical area of concern: the inefficiencies and problems plaguing India’s vehicle scrapping policy. We discovered key challenges that needed resolution:

1. Corruption Risks: The policy relied heavily on physical documentation and mandatory physical checks for enforcing scrapping. This system was highly susceptible to corruption, hindering the policy's effectiveness.
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2. Privacy Concerns: The existing central database, being entirely public, compromised personal privacy. Anyone could easily access personal details from a vehicle's number plate, and the government's practice of selling this data exacerbated the issue.
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3. Inefficient Scrapping and Black Markets: The current approach to vehicle scrapping in India was not only inefficient but also facilitated the rise of black markets. Cars could be easily resold in different states, bypassing scrapping due to the corrupt and ineffective policy framework.
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4. Inadequate Compensation Mechanisms: The reliance on physical documentation and loosely enforced policies resulted in unfair compensation practices. Additionally, the government's reliance on dealers to offer discounts as a form of compensation was insufficient and inconsistent.

By pinpointing these specific areas of concern, we were able to tailor our blockchain-based solution to directly address and mitigate these pressing issues, thereby proposing a more effective, transparent, and fair vehicle scrapping system

Our proposed solution leveraged blockchain technology to enhance three key aspects: Enforcement, Processing Capacity, and Scrapping Incentives.

1. Enforcement Improvement: We proposed the use of Non-Fungible Tokens (NFTs) to revolutionize enforcement. NFTs would ensure user privacy, consolidate essential documents with relevant stakeholders, and significantly reduce corruption. This approach promised enhanced transparency and security, aligning with our goal to streamline the enforcement process.
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2. Boosting Processing Capacity: To augment processing capacity, we suggested establishing a government-monitored digital marketplace. This platform would likely boost demand, leading to higher scrapping volumes and increased efficiency through value creation.
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3. Enhancing Scrapping Incentives: To improve scrapping incentives, we aimed to address key issues such as dealer pressure, customer dissatisfaction, and delayed compensation. Our strategy involved utilizing India's newly announced digital rupee, securely storing data on the blockchain, and employing smart contracts for prompt and fair compensation.

After detailing the conceptual and technical feasibility of our approach, we outlined the necessary steps for implementation: forming a dedicated blockchain technology team, creating a private blockchain database, developing the required infrastructure, and ultimately executing and deploying the system.

The culmination of our project was a presentation of our findings and proposal at an NYU capstone event, followed by submitting our proposal to the Indian Government both digitally (via email) and traditionally (through postal mail).