Please describe your proposed solution

The traditional finance systems neglect individuals from several emerging countries. To solve this problem using blockchain technology, we need to build the necessary financial infrastructure. The first step is building Digital ID and documentation, allowing institutions to do KYC/KYT. However, we need to maintain the privacy of their sensitive personal and financial data.

Today, decentralized digital identity providers must store user data with trusted Web2 providers. Our solution proposes a sidechain-based solution where users can store their data privately.

Providers can then use this data to prove user details using zk-proofs without revealing user data.

The proposed solution will incorporate Bloxbean’s Yaci-devkit for the private Cardano networks and Plutus smart contracts to facilitate institutional-grade KYC and KYT. The identity solution will be tailored to regulatory requirements to support the KYC process.

Please define the positive impact your project will have on the wider Cardano community

This provides a secure, privacy-focused sidechain and robust KYC framework. The tooling and documentation will be open source, and a whitepaper will be released for anyone to learn more and for developers to build a commercial project.

This impacts the Cardano ecosystem in several ways:

Bridge to TradFi: This proposal allows traditional institutions to build on Cardano while remaining compliant. This would be a stepping stone in bringing traditional finance liquidity to Cardano.

New Users: The banking industry underserves billions of people. Building novel financial solutions can help onboard new users to Cardano.

Open-source: Other projects can use our work to develop private chains to build enterprise-focused solutions.

Real-world impact: The solution expands financial access for those lacking traditional banking services. This will bring like-minded individuals and companies to build on Cardano.

What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Ongoing discussions with regulatory bodies such as the Central Banks to enter their regulatory sandbox signify Defy's commitment to compliance and regulatory alignment. Collaborations with government boards and entities demonstrate Defy's dedication to fostering a supportive ecosystem. A prototype for KYC’s encryption key management has been successfully completed.

What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: Milestone 1

Milestone Name: Milestone #1

Milestone Progress in %: 20%

Milestone delivery month: August 2024

Deliverables:

• Infrastructure setup, private Cardano networks hosted on cloud servers, ready for smart contracts and transactions for institutional-grade KYC and KYT development.

Milestone 2: Milestone 2

Milestone Name: Milestone #2

Milestone Progress in %: 40%

Milestone delivery month: September 2024

Deliverables:

• An identity solution, smart contracts that define regulators requirements to support users’ identity and KYC records.
• Documentation on infrastructure setup

Milestone 3: Milestone 3

Milestone Name: Milestone #3

Milestone Progress in %: 60%

Milestone delivery month: October 2024

Deliverables:

• A KYC solution, smart contracts that define regulators requirements to support KYC processes.

Milestone 4: Milestone 4

Milestone Name: Milestone #4

Milestone Progress in %: 80%

Milestone delivery month: November 2024

Deliverables:

• A KYC verification solution, smart contracts that define how users' records are verified which results in reputation scores and incentivization mechanism.

Final Milestone: Final Milestone

Milestone Name: Milestone #5

Milestone Progress in %: 100%

Milestone delivery month: December 2024

Deliverables:

• A video demo
• A whitepaper and report

Who is in the project team and what are their roles?

The Defy team consists of Sebastien, product owner and CEO, Jingles, CTO, Julia, Chief Regulatory Officer and Eelee, Chief of Staff, responsible for institutional partnerships. Defy’s team members have 45+ experience in building and running Fintech and DLT projects. Defy’s team members have also a strong experience in nurturing partnership with regulators and international organizations involved in promoting financial inclusion.

Sebastien Picard

CEO

www.linkedin.com/in/zebpic

PhD, MBA and MSc in Business Management, Sebastien founded, co-founded and advised startups in France, China, The Bahamas, and Cayman Island in various sectors : Crypto, Education, Fashion, Digital news and Cognitive and behavioral R&D. He also worked as a strategic builder for corporates' venturing arm in banking and vaccines industries. Sebastien has published papers on ethics and compliance in top academic journals.

Hongjing (Jingles) Khok

CTO

https://www.linkedin.com/in/jingles/

PhD in Machine Learning & Neuroscience from Nanyang Technological University, Jingles has a decade of experience as a machine learning engineer specializing in natural language processing, recommendation systems, and signal processing. Founder of Mesh SDK and Andamio, Jingles design and oversee technology operations at Defy, identifying product strategies and synergies.

Eelee Lua

CoS

https://www.linkedin.com/in/eeleelua/

With a BBA in business, Eelee is a risk management and FinTech expert, SID Accredited Board Director. She has an extensive start up experience working alongside founders to develop, communicate and execute strategic plans to achieve business objectives. An advocate for diversity and inclusion, involved in SFA Women in FinTech, WIA Chapter Lead, Eelee excels in nurturing institutional partnerships.

Julia Chin

CRO

https://www.linkedin.com/in/pekyee-julia-chin/

With over 25 years of experience in compliance and financial crime prevention, including roles at HSBC and Standard Chartered, Julia is an expert in correspondent in Banking, Securities Services, Fintech. She oversees regulatory and compliance affairs within Defy, ensuring full compliance with laws, regulatory requirements, policies, and procedures.

Please provide a cost breakdown of the proposed work and resources

Milestone 1

Budget: 20000 Ada

• Infrastructure setup, private Cardano networks hosted on cloud servers, ready for smart contracts and transactions for institutional-grade KYC and KYT development.

Milestone 2

Budget: 20000 Ada

• An identity solution, smart contracts that define regulators requirements to support users’ identity and KYC records.
• Documentation on infrastructure setup

Milestone 3

Budget: 20000 Ada

• A KYC solution, smart contracts that define regulators requirements to support KYC processes.

Milestone 4

Budget: 20000 Ada

• A KYC verification solution, smart contracts that define how users' records are verified which results in reputation scores and incentivization mechanism.

Milestone 5

Budget: 20000 Ada

• A video demo
• A whitepaper and report

No dependencies

How does the cost of the project represent value for money for the Cardano ecosystem?

The core value proposition of this product lies in its ability to offer a secure, privacy-focused platform for financial transactions that meets rigorous regulatory standards while preserving user confidentiality. Implementing a platform like this, which is capable of meeting international regulatory standards without compromising on user privacy, in the Cardano ecosystem will enhance its appeal among institutional users and other financial entities. This could improve trust and increase adoption of the Cardano blockchain for various other regulatory-compliant applications