Please describe your proposed solution.
Problem:
One of the reasons why Web3 solutions lack wide adoption is the requirement for user authentication and identification via KYC/KYB solutions and metadata, which is a legitimate requirement for specific application logic and business models but is difficult to implement in decentralized systems.
Unique solution:
Our solution will enable unique identification of each hardware, software and user-related component with industry standard DIDs and relate them to securely stored KYC/KYB data via integration with third party providers. NuNet platform will not host private data or require user authentication / identification. However, our solution will provide the ability for developers to build using an authentication layer and for users to voluntarily authenticate themselves as needed for specific models.
Some business models or use-cases may require verifiable credentials and NuNet will provide this functionality via integration to third party products (IAMX). These use cases might include hosting or providing computing resources to governmental, public, enterprise or other highly regulated bodies where anonymity of a provider is not allowed by law.
Furthermore, NuNet is developing a capability-security model intending to use a well established capability model and User Controlled Authorization Networks (UCAN) specification, ideally suited for decentralized computing system infrastructure.
Detailed approach:
This solution will add new features on the existing NuNet platform. These features will enable each newly joined platform component (hardware device, software container, user, data provider, etc.) to be identified by self-generated DIDs, stored locally on each component’s metadata and propagated to the network as needed for network communications.
Via its set of Open APIs, the project will build an API layer for relating in-platform generated DIDs with third party authentication, KYC/KYB and verified credential sharing platforms. NuNet will store only self-generated DIDs on the platform for component identification, while KYC/KYB and verifiable credentials will be provided only via third party solutions and voluntary for usage on NuNet network. This will enable users to remain pseudonymous when needed but also allow strict authentication and secure credential verification if required by business models and use-cases.
The solution will solve the security issues, including the aspect that no private keys of DIDs are accessible to anybody except their owners. Assigning DIDs to all NuNet components, allowing to authenticate them and integrating into overall NuNet’s capability-based security model will greatly enhance interaction of components within the platform as well as enable further development of advanced functionalities (e.g. reputation infrastructure and APIs).
Preliminary entity diagram of the solution
Preliminary sequence diagrams of the main process of the solution
Benefits for the Cardano ecosystem:
The project seamlessly integrates two native Cardano projects and their ecosystems – NuNet’s decentralized network of computing resource providers and IAMX’s framework for secure storage and retrieval of verifiable credentials. Implementing this project will open the ability to build many applications that require authentication / KYC / KYB layer and thus has a great potential to increase Cardano ecosystem usage for business and public purposes.
How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?
The proposal addresses the following directions of the challenge:
- Developing common tools, frameworks, core infrastructures, or proof of concepts
- Collaboration to improve interoperability within the ecosystem
The project develops the pseudonymous identification framework for decentralized platforms on which basis are self-generated DIDs. This will enable users to use the platform (which requires identification) without revealing their identities. However, the project will provide API level interoperability with authentication, KYC and KYB providers in Cardano ecosystem, which will enable projects and applications which require user authentication and credential verification due to the nature of their business models.
IAMX partnership
One of the direct project benefits is the usage of the secure KYC/KYB solution of project partner IAMX, which will serve for the first real-world usage and reference implementation of the pseudonymous identity management system on NuNet platform. IAMX is developing their own KYC/KYC solution on the Cardano blockchain and uses a Cardano native token IAMX for their processes.
This partnership between two Cardano native projects will be a direct benefit for the Cardano ecosystem. In addition, when live, this feature will enable Elasticsearch use cases to be used by the wider Cardano community as well as anybody willing to deploy it on decentralized systems - NuNet.
More about IAMX: <https://iamx.id/>
How do you intend to measure the success of your project?
This proposal is an implementation and can be measured with the increase of total number of consumers and providers using DID identification, total number of applications running on NuNet which integrate authentication, KYC and KYB solutions, as well as the number of users using these solutions.
NuNet will be monitoring the adoption of the solution and reporting direct interest and users during the project milestones. We anticipate at least 1 partner to be onboarded.
Some of the direct benefits to the Cardano ecosystem are:
- Computing resources used in the processes will be compensated in NTX, which is a Cardano Native Token
- Each exchange of value will be done as a Smart Contract on Cardano
- Currently over 2000+ people are in NuNet Discord testing the various builds of the NuNet platform
The indirect benefits to the Cardano ecosystem is:
- Other projects in the Cardano ecosystem will be able to develop applications which involve authentication, KYC/KYB and credential verification solutions and increase ecosystem usage;
- Since both NuNet and IAMX have Native Cardano Tokens, increased usage of their respective platforms through this integration will increase adoption and the number of users on Cardano network.
Please describe your plans to share the outputs and results of your project?
Spreading Outputs Over a Timescale
Our project plan includes clear milestones and deliverables, which will be shared publicly as they are completed. This incremental release of outputs will ensure a continuous stream of updates for the community.
This approach lets us provide updates on a regular basis, and offers users the chance to provide feedback that we can use to guide subsequent development.
Sharing Outputs, Impacts, and Opportunities
We intend to leverage various communication channels to share our project's outputs, impacts, and opportunities:
- GitLab: The primary hub for our technical work, hosting our codebase, documentation, and issue tracking. This will be the main point of reference for the details of our project.
- Social Platforms: We plan to regularly post updates on our progress on platforms like Twitter, LinkedIn, and Reddit. This will include major milestones, bug fixes, and insights from our development work.
- Technical Discussions: We will continue to hold weekly technical discussion where we discuss the technical aspects of our work. This provides a forum for live Q&A and discussion with our community.
- Blogs: A regular blogs to summarize the progress we have made, highlighting key achievements and outlining the next steps in our project.
Testing and further research
As an open-source project, our outputs will be freely accessible for further research and development. We encourage the community's involvement in testing our solutions to enhance their real-world performance.
Community Testing: We'll invite our users to participate in alpha and beta testing phases, where they can help identify bugs and suggest improvements. We'll use GitLab's issue tracking for managing feedback and provide guidelines for issue reporting and feature suggestions.
Internally, we'll use project insights and community feedback to guide our future work, optimize performance, and prioritize new features. Our aim is to foster a collaborative development ecosystem that is robust, relevant, and of high quality.