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Empowering Cardano SPOs: New Revenue Through Decentralized Storage
Current Project Status
vote pending
Amount
Received
₳0
Amount
Requested
₳1,515,150
Percentage
Received
0.00%
Solution

We will develop a decentralized storage network using Lattice technology, operated by Cardano Stakepool Operators, offering high-performance Web3 data solutions and new SPO revenue streams.

Problem

Existing centralized and outdated decentralized storage solutions like IPFS, Dropbox, and BitTorrent are inadequate for the growing demands of Web3, NFTs, and IoT ecosystems.

NFT-DAO

2 members

Empowering Cardano SPOs: New Revenue Through Decentralized Storage

Please describe your proposed solution

We perceive the current problem as a lack of truly decentralized, scalable, and integrated storage solutions that can effectively handle complex data for modern Web3, IoT, and AI applications. Existing solutions, such as Dropbox, IPFS, and BitTorrent, fall short in different ways—whether it’s centralized control, block-level limitations, or lack of data consistency mechanisms.

Our proposed solution is a decentralized lattice storage system built on Convex Lattice Technology, designed to provide a comprehensive and scalable alternative. The Data Lattice offers a universal data model that supports all data formats—such as graphs, vectors, binaries, JSON, and more—enabling flexibility in building advanced distributed applications. Unlike IPFS, which is block-level and focuses on breaking files into immutable content-addressable blocks, Data Lattice can manage complex data types and entire data structures as cohesive units, ensuring eventual consistency across nodes through CRDTs. This allows for seamless updates, replication, and efficient handling of high-performance, large-scale applications requiring real-time consistency.

We chose the Data Lattice approach because it inherently supports diverse data models, scalability, and self-sovereignty, ensuring that data ownership remains with users while addressing the performance needs of modern decentralized applications. In contrast to Dropbox, which is centralized, Data Lattice provides a self-sovereign, decentralized file system (DLFS), combining the accessibility of Dropbox with the decentralization of BitTorrent and IPFS. Its support for P2P content delivery allows for efficient data distribution without central authority, enhancing privacy and autonomy for users. Unlike BitTorrent, which lacks built-in consistency or authorization, Data Lattice provides cryptographic integrity, strong encryption, and identity-based access control.

Cardano Stakepool Operators (SPOs) are a critical part of this project as they provide the decentralized infrastructure necessary for redundancy while benefiting from a new revenue stream. In addition to SPOs, our project will engage NFT holders, Web3 developers, IoT data managers, and the decentralized AI community, providing each group with a distinct value proposition—such as improved data management capabilities and self-sovereign data control.

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We will prove our impact through measurable metrics, such as the number of SPOs participating, the data volumes managed by the network, the number of dApps using our storage solution, and qualitative feedback from the community regarding improved decentralization and network reliability. This solution will provide a scalable, secure, and flexible storage network that meets the complex data needs of modern decentralized applications, serving as a backend for Web3, IoT, and AI applications and delivering true data sovereignty.

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

The proposed solution will have multiple positive impacts on the Cardano community. First, it will provide a new, robust infrastructure for NFT and IoT data storage, contributing to the Cardano ecosystem’s service capabilities. Second, by allowing Cardano Stakepool Operators to act as storage nodes, it introduces an additional revenue stream, making stake pool operations more profitable and thereby encouraging more participation. This incentivizes further decentralization, enhancing network resilience.

We will measure impact through metrics such as the number of active SPOs participating in the storage network, volume of data stored, number of dApps using our storage, and increased stake pool rewards. Outputs and opportunities will be shared openly via GitHub, community reports, and regular updates through Project Catalyst channels and other community forums. Additionally, we will conduct dedicated workshops for Stakepool Operators, publish technical documentation, and organize community Q&A sessions to foster engagement, transparency, and broad adoption across the community.

Unlike IPFS and similar networks, the data lattice is not made up of anonymous nodes. A storage provider can offer its services directly to users. An SPO or groups of SPOs can band together to offer more capacity or storage redundancy.

SPOs can advertise their services and create an ecosystem dedicated to them, locking future revenue. This will open economic opportunities unmatched by competitors and give unique opportunities to node operators.

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?

We have a strong foundation in Prince2 project management, ensuring disciplined project execution with clear phases and deliverables. NFTDAO, in collaboration with the Convex Foundation, brings deep expertise in blockchain, decentralized storage, and secure data management.

Our consortium has over 5 years of experience working with lattice technologies, giving us a significant edge in developing decentralized solutions. To validate feasibility, we will begin with a pilot phase, deploying MVP nodes with select SPOs, followed by extensive testing under different network conditions to validate robustness, speed, and scalability.

To ensure transparency and build community trust, we will conduct open progress reviews and feedback sessions with SPOs and community members throughout the MVP pilot phase, ensuring technical feasibility and early identification of community needs.

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

Milestone 1: (Month 1-2): Project Kickoff and Team Setup.

  • Define project goals, assign roles, and finalize infrastructure requirements.

Milestone 2: (Month 3-4): Lattice Network Prototype and Stakepool Engagement.

  • Develop the initial decentralized storage prototype and onboard a selected group of Cardano Stakepool Operators.

Milestone 3: (Month 5-6): Minimum Viable Product (MVP) Release.

  • Release MVP with the first set of data storage capabilities (IoT and NFT data), followed by stress testing in real-world conditions.

Milestone 4: (Month 7-9): Testing and Scaling Phase.

  • Conduct performance tests, expand to additional SPOs, and optimize the network for scalability.
  • Organize community workshops to educate SPOs on system operations and to gather feedback on usability and network performance.

Final Milestone: (Month 10-12): Full Deployment and Community Reporting.

  • Final version release, deployment across broader SPO network, community presentation, and Project Close-out Report & Video.
  • Host community Q&A sessions to share project outcomes, gather insights and identify opportunities for improvement.

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

  • Sebastian Pereira Gutierrez
  • Role: Responsible for core development and overall project leadership from NFTDAO. Coordinates MVP delivery, ensuring node integration with Cardano Stakepool Operator (SPO) infrastructure and overseeing technical progress and deliverables.
  • Mike Anderson (Backend Development Specialist, Convex Foundation) - GitHub | LinkedIn
  • Role: Leads Data Lattice infrastructure development as the inventor of Convex and Lattice Technology. Responsible for ensuring seamless implementation and performance of Lattice technology, particularly with Cardano SPO nodes, and optimizing the backend for scalability and security.
  • Ricardas Darksas (Frontend Developer, NFTDAO) - [GitHub](GitHub URL) | [LinkedIn](LinkedIn URL)
  • Role: Manages all frontend development, creating the user-facing elements of the decentralized storage solution, including dashboards for Stakepool Operators, APIs for user interaction, and seamless integration to ensure usability for both technical and non-technical users.
  • TBD (Operations Manager, Convex Foundation) - [LinkedIn](LinkedIn URL)
  • Role: Oversees project management activities. Ensures all aspects of the project are running smoothly, maintains coordination between teams, manages timelines and resource allocation, and ensures milestones are met in a timely manner.
  • Rich Kopcho (Marketing Lead, NFTDAO) - LinkedIn
  • Role: Manages marketing and community engagement, focusing on promoting the decentralized storage solution to both the Cardano and Helium IoT communities. Leads initiatives for community outreach, awareness campaigns, onboarding SPOs, and attracting new users.
  • TBD (Stakepool Coordinator, NFTDAO) - [LinkedIn](LinkedIn URL)
  • Role: Responsible for managing communications and support for Cardano Stakepool Operators. Oversees SPO onboarding, provides technical assistance, and ensures SPO engagement throughout the project, enhancing their involvement and satisfaction.
  • External Consultant (Security and Testing) - To Be Recruited

Role: Specialist in security audits and decentralized storage system stress testing. This consultant will focus on evaluating the security and reliability of the MVP and final deployment, identifying vulnerabilities, and ensuring the system meets all necessary security standards.

Please provide a cost breakdown of the proposed work and resources

Backend Development (33% - 500,000 ADA):

  • Core Lattice integration, decentralized data management functions, DLT infrastructure integration.

Frontend Development (33% - 500,000 ADA):

  • User-friendly interface, dashboard for Stakepool Operators, APIs/SDKs for third-party integration.

Marketing, Community Engagement, and Stakepool Integration (33% - 500,000 ADA):

  • Community outreach, onboarding events, promotional materials, SPO training, Helium IoT user targeting.

Convex Lattice technology.

The project is dependent on Convex Lattice technology, specifically leveraging the Data Lattice for decentralized storage. The Data Lattice offers several key advantages crucial for the success of this solution:

  • Scalability and Self-Sovereignty: The Data Lattice enables infinitely scalable storage of content-addressable data, making it suitable for decentralized applications such as NFTs and IoT data. Users have self-sovereign control over their data, ensuring privacy and autonomy in managing their content.
  • Conflict-Free Replicated Data Types (CRDT): The algebraic structure of the Lattice allows it to function as a CRDT, ensuring eventual consistency across nodes. This means that data replication across the storage network happens seamlessly, avoiding conflicts and ensuring all nodes converge to the same state.
  • Cryptographic Security and Immutable Structures: The Data Lattice uses Merkle trees to provide strong integrity guarantees, ensuring that data remains immutable and can be verified cryptographically. This is essential for Web3 applications where trust and transparency are crucial.
  • Efficient Data Management through Structural Sharing and Delta Transmission: Data Lattice nodes communicate using structural sharing principles, which means that only changes (deltas) are transmitted between nodes. This drastically reduces network traffic and enhances efficiency. Unlike traditional systems, this architecture ensures that even large datasets can be synchronized with minimal overhead.
  • Pinning and Data Availability: Nodes in the Data Lattice can "pin" important data, ensuring its continued availability throughout the network. This feature is particularly advantageous for NFT and IoT use cases where data persistence is critical. By allowing Cardano Stakepool Operators to pin data, we provide guaranteed availability while adding a new layer of reliability and decentralization.

These features are integral to our solution, as they provide the security, scalability, and resilience needed for the decentralized storage of Web3, IoT, and NFT data. Without these capabilities, it would be impossible to meet the performance and trust requirements expected by our target users.

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

The proposed cost structure is designed to maximize value for the Cardano ecosystem by creating a sustainable and decentralized storage infrastructure, expanding use cases for Cardano’s SPOs beyond blockchain staking. The integration with SPOs means leveraging existing infrastructure, minimizing overhead, and maximizing returns for participants.

Development, engineering, and quality assurance costs are based on industry-standard rates and contribute directly to the robustness and reliability of the platform. The new revenue stream for SPOs strengthens the decentralization and security of the Cardano network while expanding its utility. Additionally, the budget includes costs for community engagement activities, such as workshops and Q&A sessions, which ensure transparency and community ownership, thereby fostering a stronger and more informed Cardano ecosystem.

Each ADA spent contributes toward creating a more inclusive and functional Web3 solution directly aligned with Catalyst's goals of real-world adoption and integration.

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