Please describe your proposed solution.
Problem statement - long form
There is currently a lack of a “value transfer system” for placing NFTs, and other tokens, at GPS locations and having people pick them up. Nothing like this exists today, and this is a potentially revolutionary application of the blockchain.
It all centers around rewarding someone for being at a certain location at a certain time. A few examples:
Someone might want to pay someone else 1 ADA if they come to the voting booth on a Sunday (think of a local government that wants to increase voter participation).
Or, I might want to pay someone 5 ADA to show up to my park run between 9:30 and 9:45 on a Saturday morning - and then I will give an NFT to the first ten across the finish line!
Or, someone might want to spread tokens all over the city so people can walk around picking them up and doing some exercise while at it - sort of a Pokemon GO on Cardano.
Or it might be that I want to reward a delivery driver for an early arrival - I can place 5 ADA in front of my house that can only be picked up by the public key of the delivery driver no later than 7 pm this Tuesday.
The problem is for anyone who ever wanted to incentivize someone else to be at a certain location out of need or out of love. A form of a location-based Nudge that could predictably alter people’s behavior without forbidding any options or significantly changing their economic incentives.*
At the beginning of the year, we researched 3 areas where this kind of a problem exists and for which we could develop a solution by leveraging the Cardano blockchain. For this, we received funding from Catalyst Fund 8 (https://cardano.ideascale.com/c/idea/396850).
Thanks to this funding, by the end of October 2022, the Cardano Beam protocol will support each of these use cases.
Organizing and running Sports Events. Where the organizers can manage the logistics of registering users, collecting registration fees, handing out prizes, and tracking the athletes live. This will be possible with the use of Cardano Beam. To test this, we will run an event at the end of our project where a team member and up to 10 other amateurs will cycle from Lisbon to the Algarve in Portugal.
Businesses Advertising. A “value transfer system” linked to the GPS location will transform how ads are placed and consumed at the local and community levels. Traditional advertising in local newspapers and street banners can be costly and ineffective as user attention is moving into the digital world. Giving discounts to second-time visitors or offering reward cards to try and make clients come back only works when a client has been there before and does nothing to attract the first-time visitors.
The benefit of having a “value transfer system” linked to GPS locations is that local businesses can target local consumers. As a result, users will be on the lookout for offers around them. And advertisers will be able to reach all of these users instantaneously.
Businesses can incentivize clients to pass by their store - physically. This possibility is a step-up for companies as they can get ‘guaranteed’ results for every dollar spent.
Charitable Donations based on location. Amateurs participating in events often ask for sponsorship from friends and family to help pay for event fees and other expenses. Unfortunately, it is cumbersome to collect money from friends and family. As a result, many opt for a third-party service such as chuffed.org. These services charge a fee between 2 and 7%. Cardano Beam will let friends and family place ADA or other tokens on the event’s route so the participant can pick them up during the event.
By supporting these three use cases, the Cardano Beam protocol will have a base layer onto which we can build additional functionalities on top. The base layer is the first step in our development of Cardano Beam, which we will deliver by the end of October 2022.
In Fund 9, we request additional funding to develop the protocol further and make it appealing to the non-crypto retail users and businesses. We want to make the blockchain chain seamlessly accessible to non-crypto corporations and users.
Attracting users from outside the blockchain and crypto ecosystem will help demonstrate Cardano's benefits in solving some real-world problems.
The purpose of funds from Fund 9 is to:
1 - Create a Fiat onramp to onboard non-crypto business onto the platform
2 - Port the Android version of the Mobile App to Apple iOS
3 - Create a robust GPS Spoofing Protection
4 - Create a brand identity for Cardano Beam and a uniform design across applications
5 - Business Development and Community Building
<u>1 - Create a Fiat onramp to onboard non-crypto businesses onto the platform.</u>
Traditional businesses and retail users that want to use blockchain technology often face the problem of gaining access to the wallets of blockchains and how to fund their accounts using EUR, USD, or other currency they hold in their bank accounts, or on credit cards.
An app like Cardano Beam that aims to solve problems of retail and small businesses and gain adoption from the non-crypto entrepreneurs needs to be able to onboard these users and accept payments from them using traditional payment methods.
Access to blockchain to non-crypto users will address the recent criticism for the masses' lack of adoption of blockchain and the lack of progress of apps to solve real-world problems.
A Reuters survey found that adults feel more confident with crypto. Still, despite their rising popularity, cryptocurrencies are not widely used to pay for goods and services, partly because of their frequent fluctuations in value.
<https://www.reuters.com/technology/quarter-small-businesses-across-nine-countries-plan-offer-crypto-payments-visa-2022-01-12/>
Observations from influencers that suggest there need to be more dApps for non-crypto users (<https://twitter.com/Padierfind/status/1535637332149383168>)
And discussion on the Cardano Project Catalyst telegram chats with suggestions to have a particular focus on Dapps for non-crypto users <https://t.me/ProjectCatalystChat/68101>
There needs to be an option where a user or a business can use the Cardano Beam App and place Assets on the World Map without having a web wallet and without having to go to an exchange to buy ADA.
There should be an option where the user can create an account with a username and password, deposit funds in a fiat currency, and interact with the app without realizing that they are dealing with a blockchain and crypto. This option will help onboard new non-crypto users onto Cardano.
<u>2 - Mobile App for both Android and Apple IOS phones</u>
Mobile apps must be available on the two leading mobile platforms to gain mass adoption; Android and Apple iOS. These two control 99%+ of the total mobile devices market share.
Cardano Beam Mobile App has been written with the React Native framework, configured to run on Android devices, and deployed onto the Google Play Store. Anyone can download it from the Play Store by searching for Cardano Beam.
We first chose to deploy to Android devices as Android has a dominant market share worldwide (72% for Android and 27% for iOS). And because we developed it in React Native, we knew that porting to other operating systems would be possible without having to rewrite everything in another language.
Even though Android is more popular worldwide, Apple has a dominant market share in the US, where it represents 59% of the devices, and in Japan, it has a 62% market share. Therefore to capture consumers where Apple has a dominant market share, it is essential to have a version of Cardano Beam that runs on Apple iOS.
<https://www.techrepublic.com/article/why-is-android-more-popular-globally-while-ios-rules-the-us/>
Part of the funds from Fund 9 will be to configure the React Native codebase to run on Apple iOS devices, deploy it to Apple Store, and test that the app is performing as expected on the roads.
<u>3 - GPS Spoofing Protection</u>
The mobile app users might fake their actual GPS location by using malicious software or an emulator to simulate that they are traveling the route when they are not. For event organizers, this risk can be mitigated by pre-registering participants and their addresses so that only participants on the list can pick up the rewards.
For anonymous users, the mobile app will collect static data from the user’s phones and check if they are running an emulator or using malicious software to fake their actual location. It will also use the information on the recent travel history and speed to identify if the pattern of activity is plausible (e.g., moving at 200km/h is unlikely a cycling activity)
Additional GPS Spoofing Protection is needed to give confidence that fake users can’t pick up assets. Protection is possible by cross-referencing local wifi networks, local GSM towers, and community-run blockchain mobile networks such as Helium (HNT), where access points are spread worldwide.
<u>4 - Cardano Beam Brand identity and uniform design across applications</u>
The Cardano Beam Web and Mobile App need a coherent design and identity. Therefore, we have partnered with a Design and Branding agency to help define the Cardano Beam brand identity, create a uniform design across our Webpage, Web App, and Mobile App. The agency will also and create branding assets that we can use in Business Development and Community Outreach.
<u>5 - Business Development and Community Outreach</u>
The success of a protocol comes from its use. Cardano Beam connects users who walk around with their phones in their pockets with the businesses that want to attract attention. Therefore the outreach needs to happen on two fronts - Community Outreach and Business Development.
Cardano Beam needs a strong voice and presence in the Cardano community with regular interaction and outreach through social media channels. In addition, the team members need to participate in Cardano-sponsored and other blockchain industry-sponsored events.
Cardano Beam also needs a Business Development strategy to be marketed and demoed to the businesses at a local level and online.
<u>6 - Other uses cases to which we can expand Cardano Beam and which we will explore during the Business Development sessions and reaching out to the community:</u>
Geocaching
Incentivizing voting participation
Tracking of cars and vessels
Bonuses for urgent parcel delivery
Tracking of goods in a production line
Solution - long form
We are building the Cardano Beam platform to allow anyone to place an Asset on the World map by specifying the GPS coordinates. A smart contract locks these Assets on the Cardano blockchain; to unlock them, someone must pass at that GPS location. Once the user passes at the location where the Asset was locked, the smart contract unlocks the asset and gets transferred to the user’s wallet.
This platform will allow for value to be transferred without payment terminals, without prior agreements so long as the person receiving the payment is physically present at the specified location and conforms to the other conditions of whoever placed the Asset there.
This platform will bring a sizeable new user base to the blockchain.
We received our first funding from Catalyst Fund 8 and are developing the platform at pace. We are using the funds from Fund 8 to create the base layer that allows placing and redeeming assets from the world map. We are testing the base layer by solving 3 of the use cases we identified early on: Organizing events, business advertising, and charity donations. We have already launched The Cardano Beam Web App and the Mobile App on the Testnet.
This Fund 9 proposal is aimed to enhance the platform and add a fiat on-ramp so that non-crypto users and businesses can participate seamlessly. Additional funding is also requested to create a brand identity for the Cardano Beam and engage businesses and build a community around the platform.
The base layer allows event organizers to manage the logistics of organizing an event and keeping track of athletes using the wallet address of registered participants. Event organizers can set up a course by placing tokens at checkpoints and monitoring who picked them up. Race bibs can become the wallet addresses each participant will carry on their phone. Participants register themselves on the event day by showing up and picking up a token at the start line. Finishers receive their rewards directly into their wallet when they cross the finish line. Chip timing and live tracking of participants are available through our Web App.
The base layer lets business owners advertise their location by placing tokens next to their establishment and targeting a particular time and date. They can scale the rewards by paying out more during slow times. In addition, the city markets can give out gifts to those who turn up and make them redeemable for goods at the market.
The base layer also lets athletes share their wallet addresses with friends and family and request that they place their donations somewhere along the route. Then when passing that place, the athlete’s wallet will recognize the donation and interact with the smart contract to collect it. When placing the donation, it will be possible to make it collectible by anyone passing there or only by a selected set of wallet addresses (e.g. addresses that belong to the same family)
<u>1 - Web DApp with a Map</u>
The Web App is running on the Testnet and is available at: <https://cardanobeam.app/web>
Before funding from Fund 8, Cardano Beam was in a prototype state and part of the dynamicstrategies.io website. The funds received so far meant we could register a domain and promote it to a product with its own identity.
The Web App lets users place NFTs and tokens on the map and lock them into a smart contract at that particular GPS location. Additional locking features will also be available to target a specific user group (e.g. list of wallet addresses who registered for an event) or a specific time interval. We will continue to develop this with the rest of the Fund 8 funding.
Fund 9 funding is requested to enhance the Web App and create a private area that users can access with a username and password. A private area is geared towards non-crypto users who do not have a web wallet but want to participate in the Cardano Beam protocol.
In the private area, the user can fund their account with fiat by providing a credit card, PayPal, and other traditional payment methods available through Stripe <https://stripe.com/> .
When the user funds their account, a backend service will generate a Cardano wallet and transfer to the wallet the equivalent amount of ADA for the user to use in the protocol. The user will receive the seed phrase of the wallet to use in one of the many web wallets (e.g., Nami, Eternal, Flint…)
A private area combined with a fiat onramp will create a seamless experience for non-crypto users and a gateway into the Cardano Ecosystem. The web wallet will also be usable on other apps of the Cardano ecosystem if the user chooses to.
The fiat onramp will be an innovative development for Cardano; there have been other platforms that integrate onramps (such as nft-market.io) and have seen success. Dynamic Strategies, the company developing Cardano Beam has registered with Stripe.com to process fiat payments
<u>2 - Mobile App with GPS Tracking and a Cardano Mobile Wallet</u>
The user will pick up their rewards with Cardano Beam App running on their mobile phone and which will have GPS location tracking and a Cardano wallet
The Mobile App has been released on the Cardano Testnet and is available on Google Play Store. https://play.google.com/store/apps/details?id=com.cardano_beam_native
The Mobile App has a GPS tracking system to track the user’s location and report to the web app in real-time where the user is. The mobile app also constantly queries the Cardano blockchain for nearby NFTs and tokens.
The Mobile App supports Cardano wallets. In the Mobile App the user can create a new wallet or import an existing one using the mnemonic phrase. The wallet submits transactions and collects NFTs and tokens as the user passes near them. In addition, the wallet shows the assets and the NFTs the user holds. This is particularly useful when an NFT is a QR code or a ticket to an event.
Additionally, two backend elements manage the communication between the user application and the Cardano blockchain.
<u>3 - Back end Database and APIs</u>
Backend services support the Web App and the Mobile App.
The Database temporarily stores users' location using the Mobile App so that users can relay their location to the web app.
The cardano-wallet and cardano-graphql services let the Web App and the Mobile App communicate with the Cardano blockchain and relay back the information to the user of the current state of the blockchain and each user’s holding.
The backend services have been deployed on the Testnet and they support the Web and the Mobile Apps
<u>4 - Smart contracts</u>
Smart contracts lock the tokens and NFTs on the blockchain. The user then redeems them from the smart contracts when they reach the GPS location of the smart contract.
The smart contract has four steps.
- When a business selects to place an Asset on the world map, a new smart contract gets generated with the requested GPS locations. This type of smart contract is called a “parameterized” smart contract, for which we developed the template code. Thes template generates a contact for a specific GPS location.
- The GPS location is converted into a “3-word” location courtesy of the <https://what3words.com/> service. Converting a GPS location to a “3-word” location allows for any location to be communicated using these 3 words rather than GPS coordinates which are just large numbers and therefore difficult to remember and share. This is especially useful for the rural areas where names of streets are unavailable or in the middle of wild places. The 3 world location can point to any 3x3 meter land plot anywhere on the world map.
- A transaction is sent from the web wallet to lock the assets into the smart contract.
- When a person with the Cardano Beam Mobile app passes by the location where the assets exist, the Mobile App automatically creates and sends a transaction to the smart contract to redeem the assets.
We developed the technology to generate the smart contract, create a 3-word location from GPS coordinates and interact with the smart contract. Part of this new technology we released as open-source. The rest will also be released as open-source once we are happy that the code is reliable.
With the help of funds from Fund 8 we launched the first version of the smart contract on the Testnet, and it is available for testing with our Web App and the Mobile App. The smart contract supports the locking of any Asset on the Cardano blockchain in the smart contract - this can be NFTs, Djed tokens of any amount, ADA, or any other Token on the Cardano blockchain.
Please describe how your proposed solution will address the Challenge that you have submitted it in.
Cardano Beam is a new use case for the blockchain. It targets a specific area where blockchain can improve logistics and change how a part of the industry operates. Uptake of this innovation can attract a new and untapped user base to the Cardano ecosystem. In addition, it puts a foot in the door for Cardano into at least two new industries (sports and advertising). It also shows the capability to use Cardano to solve non-standard problems.
A significant user base records and shares their daily exercises with friends through social networks such as Strava and Garmin Connect. Users of the Strava app record more than 2 million daily activities. Strava has been labeled the ‘network for athletes’ and over two-thirds of the Tour de France cyclists regularly track stage results on it.
Additionally, millions of small businesses worldwide are looking for an edge that allows them to reach customers in engaging, innovative ways. Therefore, even a slight uptake of these use cases would increase the transaction volume on Cardano by a substantial amount.
Cardano is eco-friendly, scalable, and maintains security when scaling, and its native assets (tokens) protocol is easy and secure, second to none. Cardano is really the only blockchain that has the features to make this project possible, that combined with low transaction fees which makes the solution scalable. A key feature of Cardano Beam is that the user who collects the assets can pay for the transaction fee from the assets locked in the smart contract, this means that redeeming assets for the user is free, and the cost of the transaction is paid for by who places the asset on the map - out o the major blockchains this is only possible on Cardano
What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?
The Cardano Beam essential infrastructure funded in Fund 8 has been developed to the level where it is running on a Testnet. The team is testing it daily, adding features, and fixing bugs daily. So far, the Web App and the Mobile have remained stable under low user load.
There is a risk that the rapid adoption will significantly increase the load on the servers and which can lead to the web app and the mobile app becoming unresponsive. Mitigant - the service provider who hosts the servers can upgrade to higher spec machines. The load will continue to be tested, and should the load reach critical levels; we will upgrade the machine.
Failure of the Mobile App - the Mobile App might crash or fail to record the location accurately, and the phone might run out of battery during the long event. The testing so far has shown that the Mobile App performs well; we have not experienced any significant crashes after more than 9 thousand locations shared by the Mobile App with the backend service and the Web App. During testing, we are keeping a log of all interactions between the different services
Failure to port to Apple iOS - there is a risk that the team will face challenges when adapting the React Native codebase for Apple iOS. The decision to choose React Native was deliberate to minimize this type of risk. This is because in React Native the same code base can be used to run on Android and Apple iOS devices - this reduces the risk significantly. The remaining risk is standard for any software development project.
Smart contract congestion - after the smart contract is designed and deployed it is possible that the concurrency question comes up, and it may lead to the substandard performance of the apps. We have not encountered this risk on the Testnet, and the smart contract is performing as expected. The upcoming Vasil hard fork on the Cardano Mainnet is expected to significantly increase the throughput of the Cardano blockchain. If congestion on the Mainnet becomes an issue at any point in the future, we will have the option to port the smart contract onto a Layer 2 network, such as Milkomeda or the IOG native Layer 2. The layer 2 chains borrow the security of the Cardano Mainnet while reducing the cost of transactions and increasing throughput.
GPS spoofing - users of the phone app might fake their actual GPS location by using malicious software or an emulator to simulate that they are traveling the route when they are not. For event organizers, this risk can be mitigated by pre-registering participants and their addresses so that the rewards can be picked up only by those. And for anonymous users the Mobile App will collect static data from the phone, such as the GSM carrier, if an emulator is running as well as additional location-based info such as the location of nearby wifi and GSM towers and cross-check this with the recent travel history and speed. We will implement enhanced methods to mitigate the risk of GPS spoofing with the use of funds from Fund 9