Please describe your proposed solution

This is a research and development project that will produce:

• An analysis report that evaluates Cardano-native L2 tools as well as generic Web3 L2 protocols that are candidates for integration with Cardano applications..
• An opinionated architecture design that selects specific protocols and tools to implement as a consensus logic mechanism in the Orcfax validator network. This will include use case descriptions and architecture diagrams. The design will be applicable to other Cardano projects analyzing the implementation of their own Layer2 solutions.
• Proof-of-concept software with a test case suite that demonstrates how a validator node operator can receive external source data, apply validation logic and compare results with other nodes in the L2 network to arrive at consensus on datum value.

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

This project will report on current L2 consensus protocols within Cardano and the Web3 space in general. It will map out a best practice architecture design and provide a demonstration of how the Cardano-native Orcfax project can implement it. The resulting design documentation and proof-of-concept software will be open-sourced and shared with the Cardano community, This will inform and inspire further developments and implementation of L2 consensus protocols across projects in the Cardano ecosystem.

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?

For the past two years the Orcfax team has been researching and developing a comprehensive solution to the oracle problem for Cardano-native dApps and smart contracts. We have developed an open oracle publishing protocol and have been using it to publish an ADA/USD price feed to Cardano Mainnet since early 2024.

We have an active Discord and Twitter community where our ideas, requirements and deployment progress are scrutinized and debated. We participate widely in conferences such as Cardano Summit and Rare Evo to raise awareness about our mission and product offering.

We expect to discuss and share the findings and deliverables of this project in the same community-driven way to ensure trust and accountability.

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

Milestone 1: L2 consensus model research

A: Milestone outputs - Research report evaluating current L2 protocols and tools available to Cardano projects.

B: Acceptance criteria - PDF file posted to Orcfax Github repository.

C: Evidence of milestone completion - PDF file is retrieved from Github repository.

Milestone 2: L2 consensus model design

A: Milestone outputs - Economic model report. Use case descriptions. Network architecture diagrams.

B: Acceptance criteria - Design artifacts are posted and updated in the public Github repository.

C: Evidence of milestone completion - Design artifacts are retrieved from Github repository.

Milestone 3: Proof-of-concept software

A: Milestone outputs - Software code that demonstrates how a validator node operator can receive external source data, apply validation logic, and compare results with other nodes in the L2 network to arrive at consensus on datum value.

B: Acceptance criteria - Software code is posted in the public Github repository, including test cases.

C: Evidence of milestone completion - The software tests install and run successfully.

Final Milestone: Close-out report and video

A: Milestone outputs - PDF report and MP4 video.

B: Acceptance criteria - close-out report and video accepted by Project Catalyst.

C: Evidence of milestone completion - Close-out report shared on Github. Close-out video shared on YouTube.

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

System Analyst: Peter Van Garderen

Peter is the CEO and Founder of Orcfax. He worked for two years in the field of digital archives and electronic record-keeping. Peter is the creator of the free and open source Archivematica and Access-to-Memory (AtoM) software applications, the most widely deployed archives management solutions in the world. His area of expertise is applying records management standards and archival science research to requirements for fully decentralized architectures, including the Orcfax oracle platform.

<https://www.linkedin.com/in/petervangarderen/>

System Analyst: Christian Koch

Christian is an analyst, researcher and information systems professional who holds a Masters Degree in Archival Science with a focus on blockchain technology. Christian serves as the primary liaison between the development team, Orcfax clients and our community management team.

<https://www.linkedin.com/in/christian-mk/>

Software Engineer: Ross Spencer

Ross is Orcfax’s senior systems architect and leads the development and implementation of the Orcfax architecture infrastructure. Ross has over two decades experience developing and maintaining open-source digital preservation software that is in use at major memory institutions worldwide.

<https://www.linkedin.com/in/ross-spencer-b6b9b758/>

Software Engineer: Dominic Wallis

Dominic is a former research scientist with a doctorate from the University of Bath. He gained valuable experience as a Cardano dApp developer working on a variety of platforms and tools. Dominic now applies this expertise Orcfax’s on-chain architecture. <https://www.linkedin.com/in/dominic-algernon-wallis-123b42187/>

Please provide a cost breakdown of the proposed work and resources

To accommodate for the fluctuation in ADA price, which creates a conversion risk and a potential budget shortfall, we used the 12 month historical low of $0.25 in October 2023 to establish a budget base price of $0.35 ADA for calculating our expenses.

We will employ 2 software engineers ($100/hr = 285 ADA/hr) and 2 system analysts ($75/hr = 215 ADA/hr) to complete this work over a three month period. The systems analyst role includes requirements analysis, documentation, user acceptance testing, reporting and community management.

Milestone 1 (30 days): ₳32,875

Software Engineer: 55 x hrs x ₳285 = ₳15,675

Systems Analyst: 80 x hrs x ₳215 = ₳17,200

Milestone 2 (30 days): ₳27,500

Software Engineer: 55 x hrs x ₳285 = ₳15,675

Systems Analyst: 55 x hrs x ₳215 = ₳11,825

Milestone 3 (30 days): ₳36,000

Software Engineer: 115 hrs x ₳285 = ₳32,775

Systems Analyst: 15 x hrs x ₳215 = ₳3,225

Milestone 4 (10 days): n/a

No dependencies

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

Given how important high-performance L2 consensus layers are to the future success of Cardano DeFi business models, the budget for this project represents a small cost for significant ecosystem-wide value. The research report, architecture design, and proof-of-concept software will save time and money for the many other projects in the Cardano space that we know are assessing the same consensus and performance requirements for their own L2 networks. Our work will allow other Cardano projects to confidently steer a path to their own L2 consensus layer solutions and kick-start their own development initiatives.