Please describe your proposed solution.
This proposal is for a research and design white paper that will be open source content for the entire community. The final design should allow for any DAO to verify that a member supplied self sovereign identity credential indicating that the member is human, alive and unique is accurate through a smart contract that references an encrypted block chain list.
The proposed solution brings together several very specific advanced concepts but the desired outcome is very simple which is for DAOs to ensure that every member is human, still alive and does not have more than one membership in the DAO. The principal reason for the solution is to allow many DAOs to create a one member, one vote organizational structure while maintaining maximum decentralization and minimum overhead.
Breaking the solution down into its component requirements:
1) Design a zero knowledge proof that every member of an encrypted blockchain list is human, alive and unique. The reason for using a zero knowledge proof is to maintain maximum anonymity while the use of an encrypted blockchain list instead of a traditional database server is to maintain maximum decentralization. Ideally this zero knowledge proof and addition to the encrypted blockchain list would be done via a dapp.
2) Issue a Self Sovereign Identity verifiable credential that the user stores in their wallet, accrediting that they are human, alive and unique. To maintain the alive credential would require periodic verification. The reason for using the SSI model is because it maximizes decentralization and it allows many DAOs, or other entities, to use a single issuer instead of having to reinvent the wheel. The ZKP dapp would also issue the credential and send it to the user's wallet.
3) When a credential holder wishes to join a DAO they would provide the verifiable credential to an open source smart contract which would provide the proof that would be presented to the DAO. Using a smart contract with an encrypted blockchain list instead of a traditional database server is again to maintain maximum decentralization.
Please describe how your proposed solution will address the Challenge that you have submitted it in.
The DAO-NET ecosystem already addresses the creation and operation of algorithmic DAOs. There are also several managed DAO solutions available in the Cardano ecosystem. One of the most important tools still missing for the creation of DAOs is the ability to verify that members are humans (not bots) and do not have multiple accounts. There are similar services on other platforms, mainly Ethereum, like Proof of Humanity however most use database servers instead of blockchains to store data and usually are a fee based service.
The design objective is for a free open source decentralized credential issuing service that will not be controlled by any entity with transaction fees (probably increased) covering the additional computational costs to Stake Pool Operators (potentially providing SPOs additional revenue).
What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?
From a high level the solution seems technically feasible however the solution is combining several cutting edge concepts therefore there is a high possibility that not all of the desired components will work together as required. Therefore the proposal has been stripped down to simply creating the white paper and design documentation to show how the desired solution could be achieved.
Whatever aspects of the design are not feasible will be documented, along with the reasons, potential workarounds and/or new technological features required to implement the full solution.
The second main risk involves finding qualified experts willing to perform open source work at a rate that is likely to be funded under Project Catalyst, given their high demand and limited availability. To mitigate this risk, DAO Coders will reach out to IOG and the Cardano Foundation for possible recruiting assistance.