Innovative and solves a big problem. Ethereum not Etherium Innovative and solves a big problem. Ethereum not Etherium. Also, you need more detail as to how this blockchain will actually function. I think this is a simple database and every entry hash is written to Eth chain. More details on the mechanics of the database too. 83/100 Very nice.

Ride the CHAIN Cryptoventures February 28, 2017 Group 11 Abdullah Alrashid Nick Kirby Dima Perkis Ryan Steeb

Information asymmetry in the used car market creates inefficiency1 Owner believes they have Buyer wary of getting a They attempt to bridge gap by: Purchasing CarFax reports Certifying through dealers Hiring independent mechanic Must trust dealer Incentives misaligned if dealer owns car Expensive Hard to trace accurate history Minimal, inconsistent info Data is owned by CarFax Lack of trust and limited information lead to significant loss of value 1With improved data, used vehicle “residual values will be stronger, which cascades to less sales incentives necessary to sell new vehicles”. –GM Executive on Carchain concept

Comprehensive Database Carchain equips the owner with an immutable digital record of vehicle history Dealer Owner Own, control, and profit from data Optimize behavior and performance Improve resale value Assure pre-owned quality Eliminate lack of trust as an issue Determine used car value Comprehensive Database Buyer Service history Parts & engine health Driving habits & emergency sensors activation Obtain detailed information on car, cheaper Trust that data is accurate Purchase access to data with car sale

Car owners will control access to vehicle records Carchain will capture the customer during the initial car sale and maintain the relationship during every service and repair With each second-hand sale, new Carchain will gain new customers, thus increasing network effects Dealers will be incented to participate in the program as Carchain customers will be more loyal to them (versus going to external repair centers) Buyers Owner Request Access 2nd Hand Market OEMs Provide Record Access Establish Access ($$) Review Records Review Data, Purchase Data During Car Sale ($$) Vehicle Dealer Database Perform work Submit Operational & Maintenance Data ($$) Extract car data Maintain Database, Customer & Dealer Relationships Blockchain

Vehicle Identification Records will be secured through asymmetric keys and shared using tokens Cloud-hosted database with entries hashed on Etherium blockchain using proof of stake algorithms Structure provides data control to owner and leaves database open to expansion and additional parties Owners access the database using private keys and issue tokens to buyers interested in the seeing the report Dealers write to the chain using a public key made of the VIN and dealer private key Buyers Owner Purchase Token 2nd Hand Market OEMs 1 Send Report Token Owner Private Key Token Vehicle Dealer Database Maintain Seller Private Keys (for Backup), VIN/Public Key Database Write Entry Hash 2 3 VIN A Blockchain Vehicle Identification Number Dealer Private Key Dealer Public Key Data permissions Immutable source 5

Carchain will enter the market through partnerships with franchise dealerships who dominate new auto market Dealership customer opts into Carchain service when buying new vehicle This provides incentive for customer to regularly service vehicle AND use certified franchise service center 1 Franchise Dealer service centers have exclusive ability to write to Carchain 2 Customer owns data and can sell to future used car buyer 3

Carchain revenues will stem from owners, dealers, and buyers One Time Payments Recurring Payments Initiation fee to Carchain at time of purchase Fee to dealer every maintenance or repair None Dealer passes a portion of owner’s maintenance fee to Carchain for every database entry Fee to Owner to view Carchain report Fee to Owner to assume ownership of Carchain report at car sale Owner Dealer Buyers

Carchain will surpass $23M annual revenue by year five Category Calculation US Annual Spend Vehicle Sales 17.5M New1 + 27.9M Used2 = 45.4M Vehicles Sold X $24.7K/Vehicle $1,123B Annual Vehicle Sales Annual Maintenance 205M Vehicles x 13,500 Miles/Yr4 x $0.05 Maintenance /Mile3 $146B Annual Maintenance Total $1.3 Trillion Revenue Stream Value 5 Year Projection Initiation Fees 0.1% of vehicle value $19.1M Record Update Fees 0.5% of maintenance $3.9M Transaction Commission 25% of data sale $0.8M 1Reuters 22016 Manheim Used Car Market Report 3American Automobile Association 4U.S. Dept. of Transportation: Bureau of Transportation Statistics Yr. 10 Mkt Share: 11% of total US Car Parc5 5Growth Assumptions: 20yr S-Curve w/ peak growth in yr. 10 and saturation of the franchise dealer sale market at 45%

The business model has multiple industry applications that outweigh its risks Mitigations Additional Industry Applications Heavy Machinery Commercial/ Fleet Vehicles Customers lose database key Carchain uses 2/3 key authentication and maintains 2 keys OEMs resist sharing data with dealerships Partner with OEM to provide access to anonymous Carchain data Implementation of system at service centers fails due to non-adoption Partner with world class software and user experience firms to make process effortless Boats Private Aircraft Customer covers up accident by using unauthorized dealer Software reads who performed last “reset” on alarms and adds risk score if not done by authorized center

A $600K initial seed investment will allow Carchain to develop a proof of concept and enter the market Q2 2017 - $600K Seed Q2 2018 - $4M Series A Q4 2020 - $8M Series B Finance via convertible note Build minimum viable product capable of showing proof of concept for software function Secure partnership deal with major car dealer group Valuation depends on partnership deal Complete product design and begin scaling platform Hire full time marketing and engineering teams Reach profitability Growth capital required to hire sales team to roll out service to all dealerships Explore adjacent markets and build new services Launch full scale marketing campaign direct to consumers