Blockchain and carsharing are changing the image of the cities. How modern technologies are bringing the traffic into the 21st century.

Maciej Zieliński

31 Mar 2020
Blockchain and carsharing are changing the image of the cities. How modern technologies are bringing the traffic into the 21st century.

There is over a billion of cars in the world. We are basically in love with them, even though they have brought many issues. Unfortunately they can't be ignored anymore, we need to face them. Perhaps technologies such as blockchain will help us bring the balance to the streets or even reduce the carbon footprint the cars create.

With the growing urbanisation rate the topic of the increasing issue of traffic has kept returning. The citizens of huge urban sprawls are most probably familiarised with many hour long traffic jams which complicate their lives with huge delays. The experts agree that the problem lies in the amount of the cars owned by people. Because the majority of them utilises the fossil fuels, they also contribute towards the climate change and the environmental pollution. However, despite all of the red flags, it may be impossible to find an alternative in the closest future. That’s why, the solutions which offer a reformation to the existing systems are so important.

As far as the reduction of air pollution goes, many see hope in the electric drive. However its current price makes it inaccessible to most consumers. 

It’s worth asking a question, however, if the majority of people really need to have a car of their own.

High costs of purchasing a car or its long-term renting and the need of a costly maintenance can become absurd when in reality the vehicle is used sparsely 
For many people, the solution to this predicament might be the carsharing, a practice which has recently growing in popularity. 

Such a solution might definitely change the nature of our perception towards the cars. If we are using rentable cars in moderation, they are much cheaper and practical than the ones we own. The consumers use them only if they are necessary. They do not need to suffer the costs of maintenance and car parking fees. Carsharing can allow the traffic to be reduced, reducing the amount of parked cars and cars entering the city centre. Thanks to the services such as the 4mobility, more and more people can additionally choose the electric car which is by far a better choice for the environment.

The potential of carsharing was noticed by the McKinsey report which priced the value of the global market of shared economy at 54 trillion dollars in 2016. It also estimated that this value shall be growing by 30% per year until year 2030. It is to no surprise that this topic was fetched by the start-ups and the global companies alike.

Carsharing and blockchain

Despite the growing popularity, the carsharing procedures could definitely use some improvements. Revolutionary blockchain technology can help the potential of carsharing be truly realised.

Basing the platform on the decentralised blockchain network can help the companies at creating the transparent, potentially global systems. Thanks to the dispersion of databases between the users , the data stored within them such as the ratings of the renters or financing the very platforms, they can be regularly verified. This makes the service incredibly reliable and resistant to manipulations.

By using the smart contracts, the direct transactions between the parties could be carried out without the need of third parties, making the carsharing much more accessible.

On the other hand the cryptocurrency transactions, carried out by Derant for example, can free the users from the costs of conversion charges. Thanks to this the final price is only dependent on the conversion factor of the users’ bank. Thanks to that, the accessibility of the service can become global.

Siemens is thinking of blockchain

The usage of blockchain technology in carsharing has caught the attention of Siemens. The sister company of the German titan- siemens mobility is trying to explore its potential in the incoming years. Its goals include improving the processes of refuelling, parking or the delivery of the desired vehicle. 

Public transport

Carsharing is also a perfect solution for people who don’t use their car every day and use the public transport for commuting. It turns out that the blockchain technology can aid us here too.

Increasing the transparency

When car breaks down on the way to work, one person will be incapable of reaching their destination. However, if the bus breaks down, there will be around 50 people late to their work. The information about the condition of the vehicle he is taking is very important for the passenger. Both for his comfort and his safety.

Accidents with burning buses in Rome in 2017 show us the lethal effects of negligence of the public transportation. By making the data about their condition available in the blockchain network, it would be possible have an insight upon the status of the buses and other vehicles and allow for a quicker problem solving in that matter. 

Blockchain allows for registration of all the processes which are carried out by the bus – from its creation to all of its repairing. Thanks to the saving system in the library of blocks its easy to track the entire chain and to find the potential omits.

Such a system is resistant to manipulations – the data which was once saved on the blocks cannot be altered. Due to its decentralisation there is no supervision by the superior party. This means that in case of an emergency, no party could change or delete the information which would become detrimental to it. 

Ticket sales

Currently, the passenger is often forced to buy an additional ticket to travel from one city to another. Its very uncomfortable  and can bring additional costs.

Platforms such as Dovu have a chance to change this through the power of blockchain by allowing to pay for the tickets with the special tokens. Thanks to this the comfort of the passenger is increased because he can buy all of the tickets with the use of one app with one form of payment. 

Blockchain and the digitalisation of the documentation

To make the communal transport a worthy replacement of the private forms of transport, the infrastructure must be upgraded. However, with a greatly expanded infrastructure comes a greatly expanded documentation. The majority is kept in a paper form. On a global scale, the digitalisation of such data would bring a great conservation of paper. Thanks to that the Public transport would become even more ecological.

Due to many reasons, decentralised databases would be more optimal than the traditionally used centralised ones. First of all they are much more resistant to manipulation. Secondly, thanks to the dispersion of data it can be much more resistant to destruction. When the data is stored in many places, it can be restored easily when one of the databases is lost.

Range of benefits

The following examples show us how the human mobility can be change with the usage of the blockchain technology. Creating tokens, outsourcing the services of blockchain like Nextrope did with the Value and the Alior Bank, can help us change the way we perceive the means of transportation. They can reduce the costs and positively benefit the environment. They can also increase the comfort of the passengers. They help at improving of the working conditions of Taxi drivers. They build new, more beneficial models of the car traffic and the public transport. Blockchain brings a new perspective and a fresh start for many of the ideas existing in the context of  means of transportation.

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Token Engineering Process

Kajetan Olas

13 Apr 2024
Token Engineering Process

Token Engineering is an emerging field that addresses the systematic design and engineering of blockchain-based tokens. It applies rigorous mathematical methods from the Complex Systems Engineering discipline to tokenomics design.

In this article, we will walk through the Token Engineering Process and break it down into three key stages. Discovery Phase, Design Phase, and Deployment Phase.

Discovery Phase of Token Engineering Process

The first stage of the token engineering process is the Discovery Phase. It focuses on constructing high-level business plans, defining objectives, and identifying problems to be solved. That phase is also the time when token engineers first define key stakeholders in the project.

Defining the Problem

This may seem counterintuitive. Why would we start with the problem when designing tokenomics? Shouldn’t we start with more down-to-earth matters like token supply? The answer is No. Tokens are a medium for creating and exchanging value within a project’s ecosystem. Since crypto projects draw their value from solving problems that can’t be solved through TradFi mechanisms, their tokenomics should reflect that. 

The industry standard, developed by McKinsey & Co. and adapted to token engineering purposes by Outlier Ventures, is structuring the problem through a logic tree, following MECE.
MECE stands for Mutually Exclusive, Collectively Exhaustive. Mutually Exclusive means that problems in the tree should not overlap. Collectively Exhaustive means that the tree should cover all issues.

In practice, the “Problem” should be replaced by a whole problem statement worksheet. The same will hold for some of the boxes.
A commonly used tool for designing these kinds of diagrams is the Miro whiteboard.

Identifying Stakeholders and Value Flows in Token Engineering

This part is about identifying all relevant actors in the ecosystem and how value flows between them. To illustrate what we mean let’s consider an example of NFT marketplace. In its case, relevant actors might be sellers, buyers, NFT creators, and a marketplace owner. Possible value flow when conducting a transaction might be: buyer gets rid of his tokens, seller gets some of them, marketplace owner gets some of them as fees, and NFT creators get some of them as royalties.

Incentive Mechanisms Canvas

The last part of what we consider to be in the Discovery Phase is filling the Incentive Mechanisms Canvas. After successfully identifying value flows in the previous stage, token engineers search for frictions to desired behaviors and point out the undesired behaviors. For example, friction to activity on an NFT marketplace might be respecting royalty fees by marketplace owners since it reduces value flowing to the seller.


Design Phase of Token Engineering Process

The second stage of the Token Engineering Process is the Design Phase in which you make use of high-level descriptions from the previous step to come up with a specific design of the project. This will include everything that can be usually found in crypto whitepapers (e.g. governance mechanisms, incentive mechanisms, token supply, etc). After finishing the design, token engineers should represent the whole value flow and transactional logic on detailed visual diagrams. These diagrams will be a basis for creating mathematical models in the Deployment Phase. 

Token Engineering Artonomous Design Diagram
Artonomous design diagram, source: Artonomous GitHub

Objective Function

Every crypto project has some objective. The objective can consist of many goals, such as decentralization or token price. The objective function is a mathematical function assigning weights to different factors that influence the main objective in the order of their importance. This function will be a reference for machine learning algorithms in the next steps. They will try to find quantitative parameters (e.g. network fees) that maximize the output of this function.
Modified Metcalfe’s Law can serve as an inspiration during that step. It’s a framework for valuing crypto projects, but we believe that after adjustments it can also be used in this context.

Deployment Phase of Token Engineering Process

The Deployment Phase is final, but also the most demanding step in the process. It involves the implementation of machine learning algorithms that test our assumptions and optimize quantitative parameters. Token Engineering draws from Nassim Taleb’s concept of Antifragility and extensively uses feedback loops to make a system that gains from arising shocks.

Agent-based Modelling 

In agent-based modeling, we describe a set of behaviors and goals displayed by each agent participating in the system (this is why previous steps focused so much on describing stakeholders). Each agent is controlled by an autonomous AI and continuously optimizes his strategy. He learns from his experience and can mimic the behavior of other agents if he finds it effective (Reinforced Learning). This approach allows for mimicking real users, who adapt their strategies with time. An example adaptive agent would be a cryptocurrency trader, who changes his trading strategy in response to experiencing a loss of money.

Monte Carlo Simulations

Token Engineers use the Monte Carlo method to simulate the consequences of various possible interactions while taking into account the probability of their occurrence. By running a large number of simulations it’s possible to stress-test the project in multiple scenarios and identify emergent risks.

Testnet Deployment

If possible, it's highly beneficial for projects to extend the testing phase even further by letting real users use the network. Idea is the same as in agent-based testing - continuous optimization based on provided metrics. Furthermore, in case the project considers airdropping its tokens, giving them to early users is a great strategy. Even though part of the activity will be disingenuine and airdrop-oriented, such strategy still works better than most.

Time Duration

Token engineering process may take from as little as 2 weeks to as much as 5 months. It depends on the project category (Layer 1 protocol will require more time, than a simple DApp), and security requirements. For example, a bank issuing its digital token will have a very low risk tolerance.

Required Skills for Token Engineering

Token engineering is a multidisciplinary field and requires a great amount of specialized knowledge. Key knowledge areas are:

  • Systems Engineering
  • Machine Learning
  • Market Research
  • Capital Markets
  • Current trends in Web3
  • Blockchain Engineering
  • Statistics


The token engineering process consists of 3 steps: Discovery Phase, Design Phase, and Deployment Phase. It’s utilized mostly by established blockchain projects, and financial institutions like the International Monetary Fund. Even though it’s a very resource-consuming process, we believe it’s worth it. Projects that went through scrupulous design and testing before launch are much more likely to receive VC funding and be in the 10% of crypto projects that survive the bear market. Going through that process also has a symbolic meaning - it shows that the project is long-term oriented.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.


What does token engineering process look like?

  • Token engineering process is conducted in a 3-step methodical fashion. This includes Discovery Phase, Design Phase, and Deployment Phase. Each of these stages should be tailored to the specific needs of a project.

Is token engineering meant only for big projects?

  • We recommend that even small projects go through a simplified design and optimization process. This increases community's trust and makes sure that the tokenomics doesn't have any obvious flaws.

How long does the token engineering process take?

  • It depends on the project and may range from 2 weeks to 5 months.

What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained


18 Mar 2024
What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Enter Berachain: a high-performance, EVM-compatible blockchain that is set to redefine the landscape of decentralized applications (dApps) and blockchain services. Built on the innovative Proof-of-Liquidity consensus and leveraging the robust Polaris framework alongside the CometBFT consensus engine, Berachain is poised to offer an unprecedented blend of efficiency, security, and user-centric benefits. Let's dive into what makes it a groundbreaking development in the blockchain ecosystem.

What is Berachain?


Berachain is an EVM-compatible Layer 1 (L1) blockchain that stands out through its adoption of the Proof-of-Liquidity (PoL) consensus mechanism. Designed to address the critical challenges faced by decentralized networks. It introduces a cutting-edge approach to blockchain governance and operations.

Key Features

  • High-performance Capabilities. Berachain is engineered for speed and scalability, catering to the growing demand for efficient blockchain solutions.
  • EVM Compatibility. It supports all Ethereum tooling, operations, and smart contract languages, making it a seamless transition for developers and projects from the Ethereum ecosystem.
  • Proof-of-Liquidity.This novel consensus mechanism focuses on building liquidity, decentralizing stake, and aligning the interests of validators and protocol developers.


EVM-Compatible vs EVM-Equivalent


EVM compatibility means a blockchain can interact with Ethereum's ecosystem to some extent. It can interact supporting its smart contracts and tools but not replicating the entire EVM environment.


An EVM-equivalent blockchain, on the other hand, aims to fully replicate Ethereum's environment. It ensures complete compatibility and a smooth transition for developers and users alike.

Berachain's Position

Berachain can be considered an "EVM-equivalent-plus" blockchain. It supports all Ethereum operations, tooling, and additional functionalities that optimize for its unique Proof-of-Liquidity and abstracted use cases.

Berachain Modular First Approach

At the heart of Berachain's development philosophy is the Polaris EVM framework. It's a testament to the blockchain's commitment to modularity and flexibility. This approach allows for the easy separation of the EVM runtime layer, ensuring that Berachain can adapt and evolve without compromising on performance or security.

Proof Of Liquidity Overview

High-Level Model Objectives

  • Systemically Build Liquidity. By enhancing trading efficiency, price stability, and network growth, Berachain aims to foster a thriving ecosystem of decentralized applications.
  • Solve Stake Centralization. The PoL consensus works to distribute stake more evenly across the network, preventing monopolization and ensuring a decentralized, secure blockchain.
  • Align Protocols and Validators. Berachain encourages a symbiotic relationship between validators and the broader protocol ecosystem.

Proof-of-Liquidity vs Proof-of-Stake

Unlike traditional Proof of Stake (PoS), which often leads to stake centralization and reduced liquidity, Proof of Liquidity (PoL) introduces mechanisms to incentivize liquidity provision and ensure a fairer, more decentralized network. Berachain separates the governance token (BGT) from the chain's gas token (BERA) and incentives liquidity through BEX pools. Berachain's PoL aims to overcome the limitations of PoS, fostering a more secure and user-centric blockchain.

Berachain EVM and Modular Approach

Polaris EVM

Polaris EVM is the cornerstone of Berachain's EVM compatibility, offering developers an enhanced environment for smart contract execution that includes stateful precompiles and custom modules. This framework ensures that Berachain not only meets but exceeds the capabilities of the traditional Ethereum Virtual Machine.


The CometBFT consensus engine underpins Berachain's network, providing a secure and efficient mechanism for transaction verification and block production. By leveraging the principles of Byzantine fault tolerance (BFT), CometBFT ensures the integrity and resilience of the Berachain blockchain.


Berachain represents a significant leap forward in blockchain technology, combining the best of Ethereum's ecosystem with innovative consensus mechanisms and a modular development approach. As the blockchain landscape continues to evolve, Berachain stands out as a promising platform for developers, users, and validators alike, offering a scalable, efficient, and inclusive environment for decentralized applications and services.


For those interested in exploring further, a wealth of resources is available, including the Berachain documentation, GitHub repository, and community forums. It offers a compelling vision for the future of blockchain technology, marked by efficiency, security, and community-driven innovation.


How is Berachain different?

  • It integrates Proof-of-Liquidity to address stake centralization and enhance liquidity, setting it apart from other blockchains.

Is Berachain EVM-compatible?

  • Yes, it supports Ethereum's tooling and smart contract languages, facilitating easy migration of dApps.

Can it handle high transaction volumes?

  • Yes, thanks to the Polaris framework and CometBFT consensus engine, it's built for scalability and high throughput.