A study for efficiency improvement of used car trading based on a public blockchain

Recently, the size of the used car market has been continuously increasing. In this used car trading market, various used car trading damage is caused by the asymmetry of information between the seller and buyer. In particular, there are many cases of damage caused by information asymmetry between the seller and buyer, and the reliability of the used car trading market is being deteriorated. In this study, we propose a used car transaction management system that guarantees reliability without the intervention of third parties by using smart contracts based on the public blockchain Ethereum. The public blockchain was used in the used car transaction management system to design a safe and reliable used car transaction management system based on the reliability of information on the used cars. In addition, smart contracts were used to design contracts for used car trading, allowing for safer trading while reducing the effort and time of the trading participants. This system mitigates the asymmetry of information between buyers and sellers through the characteristics of the blockchain that guarantees the integrity and transparency of data, and reduces and prevents brokerage commissions in the distribution process without third-party intervention. This system uses IPFS to store data using the Mongo database based on the Node.js server and returns the hash function stored in the smart contract.