“Kaarpool” is a blockchain-based carpooling service that eliminates the need for a centralized database server, reducing the risk of cyber-attacks and password theft. The service operates on a decentralized network and uses Ethereum-based smart contracts for transactions. This system ensures transparency as payments are made directly from the rider’s account to the driver’s account without any intermediaries. A unique feature of Kaarpool is the use of smart contracts between the rider and driver to prevent payment fraud. The contract activates when a ride is booked and guarantees payment at the end of the ride based on factors like distance, fuel consumption, and number of passengers. This system minimizes ride cancellations. If a driver needs to cancel, the rider is provided with other available rides. If a rider cancels, they incur a penalty as the driver has already been booked and removed from the list of available rides.