Please describe your proposed solution.

Problem:

Storing HD wallet seed phrases is stressful. Current methods, including paper and offline storage, have risks of misplacement and hacking, leading to significant cryptocurrency losses.

Solution:

Our solution is a user-friendly decentralized seed phrase manager for Cardano. It encrypts seed phrases using On-Chain Encrypted Storage, enhancing security and convenience. By distributing seed phrases on the blockchain, the solution mitigates the risks associated with centralized storage, making it challenging for a single entity to compromise multiple seed phrases.

How it Works:

1. The user submits 23/24 seed words, keeping 1 hidden for extra security.
2. Index of the hidden word and passphrase are provided.
3. Personal info (hashed) is added for UTXO identification.
4. Dapp encrypts 23 words and indexes using AES encryption with the passphrase, storing it on-chain.
5. Personal info is hashed and parameterized for script address.

Implementation:

• Parameterized smart contract on Cardano Blockchain using Plutus/Plutarch.
• On-chain logic mainly for storage, with an option to withdraw min ADA if needed.
• Off-chain code using Lucid for AES encryption and UTXO locking.

Recovery:

Users can recover their seed phrase by providing passphrase and personal info in the exact order. The Dapp decrypts and provides the 23 words + index, ensuring a safe recovery mechanism.

Importance Of This Solution:

• Offers a recovery mechanism for lost seed phrases.
• Simplifies information storage for recovery, encouraging users to define passphrases and personal info rather than storing their seed phases directly on their computer, on a piece of paper, or using some other insecure/expensive storage mechanism.
• Enhances security by allowing multiple storage locations without compromising funds.

Target Audience:

All self-custody crypto users, including those from other chains. Encourages central exchanges to provide enhanced security features for self-custody wallets.

Impact Measurement:

Evaluate impact through community adoption, user feedback, and the increasing number of users utilizing the solution.

Prototype Access:

Access the prototype on GitHub, which includes a Next.js application with TypeScript and lucid-cardano for off-chain. Plutarch code is available separately. Blockfrost API keys and Nami wallet are required for connection.

Off-Chain Lucid Code:

<https://github.com/rchak007/decentralSeedRecover/blob/main/pages/offChain.tsx>

On-Chain plutarch Code:

<https://github.com/rchak007/decentralSeedRecover/blob/main/pages/onChain.hs>

Please see the Pilot Test with Cardano PreProd section here:

<https://github.com/rchak007/decentralSeedRecover> for testing simple GUI and the test results.

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

The proposed solution addressed the challenge of seed phrase management whether self-custody or centralized by relying on the benefits of Cardano's eUTXO model to store the seed phrase in a decentralized fashion as well as the use of Smart contracts to verify the validity of the owner of the seed phrases while recovering lost keys.

This product will make onboarding users easier as the management of seed phrases is a difficult action and requires intensive risk management.

Our solution will further protect the assets of Cardano Web3 users by ensuring that they can always recover their seed phrases at will. It also provides reliable security and autonomy of assets and protects users against the limitations of centralized services.

More info on our proposed solution: https://github.com/rchak007/decentralSeedRecover

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 completed, the Emurgo Cardano Developer Professional program, and the Cardano Solutions Architect programs, and are Emurgo-certified as well.

Our team constitutes Cardano Solutions architect Developers with experience in Plutus, Plutarch, MeshJS, and Lucid.

We also have teammates with traditional Web2 Skills such as iOS development, Android, and Web Development.

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

Scaling Planning & Infrastructure Setup (1 month)

Objectives:

• Establish the foundational infrastructure including hosting decisions and end-to-end tool stack selection.
• Design UI/UX workflow.
• Define the roadmap for further milestones, and end-to-end DApp Architecture.
• Evaluate and decide on using Blockfrost API or setting up a dedicated Cardano node.
• Begin Dual Licensing Terms and Conditions evaluation for public release and use.
• Explore business models and encryption strategies, including recursive encryption methods.

Deliverables:

• A scaled project architecture with a clear production infrastructural plan.
• A documented decision on hosting and tool stack, including rationale.
• A report on cascaded encryption methodology and its implementation strategy.

>On-chain code optimization and Off-chain code safeguarding (3 months)

Objectives:

• Clean up and optimize backend code, and evaluate Plutus / Plutarch applicability.
• Develop and refine recursive encryption mechanisms using Lucid for off-chain processes.

Deliverables:

• A robust and optimized on-chain validation system, implemented in Plutus or Plutarch.
• Completed and tested off-chain code, ensuring secure and efficient encryption processes.

>User Interface and Experience Development (2 months)

Objectives:

• Design and develop a user-friendly and intuitive front-end for the web application.
• Ensure UI/UX aligns with the needs and expectations of self-custody crypto users.
• Collecting targeted user feedback into the design.

Deliverables:

• A fully functional, scalable, and visually appealing front-end interface.
• User experience testing results and subsequent improvements.

>Testing and Optimization (1 month)

Objectives:

• Conduct comprehensive testing, including debugging and High and low-level system optimization.
• Ensure system reliability, security, and performance.
• Smart Contracts Auditing.

Deliverables:

• A detailed testing report, including identified issues and resolutions.
• An optimized system ready for deployment.

>Deployment and Documentation (1 month)

Objectives:

• Prepare for and execute the deployment of the solution.
• Complete all necessary documentation, including user guides and technical documentation.
• Finalize licensing and prepare for public release.

Deliverables:

• A deployed and operational decentralized seed phrase manager.
• Comprehensive documentation for users and developers.
• Produce a finalized definition of Terms and Conditions under decided Dual Licensing.

>Launch and Marketing (2 months)

Objectives:

• Implement an onboarding strategy for new users, including educational materials.
• Develop and execute a marketing plan to promote the solution to target audiences, including self-custody crypto users and centralized exchanges.
• Create a structured report to the community about project delivery.

Deliverables:

• A successful launch with user onboarding materials and support systems.
• Marketing campaign reports, including reach, engagement, and user feedback.
• Community feedback report.

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

Chakravarti Raghavan - Cardano smart contract engineer -<https://www.linkedin.com/in/chuck-r-02031a220>

Jon Bauer - Cardano smart contract engineer - <https://www.linkedin.com/in/jonbauer/>

Harun Mwangi - Cardano smart contract engineer - <https://www.linkedin.com/in/harunslinked>

Demilade Jaiyeola (Demmy) - Cardano smart contract engineer - <https://www.linkedin.com/in/oluwademilade-jaiyeola/>

Russel Que - Cardano smart contract engineer - <https://www.linkedin.com/in/russel-q-7ab064a/>

Curtis Myers - Cardano smart contract engineer - <https://www.linkedin.com/in/curtis-myers-1798239/>

Please provide a cost breakdown of the proposed work and resources.

PROJECT BUDGET BREAKDOWN

Factors for consideration:

Milestone 1:

1. Planning and evaluating decisions on:

• Dapp Architecture and Design. = ₳20,000.
• Backend/Onchain Infrastructural cost = ₳8,250.
• UI/UX workflow. = ₳17,500.
• System architecture design = ₳9,500.

Total = ₳55,250.

Milestone 2:

1. On-chain and Off-chain code development:

• Code optimization complexity: Plutus/Plutarch expertise. = ₳12,500.
• Research and Implementation cascaded encryption mechanism. = ₳7,500.
• Development Environment. = ₳5,000.
• Documentation. = ₳5,000.

Total = ₳30,000

Milestone 3:

1. Development of Minimum Viable Frontend Features and Expectations:

• Frontend stack development = ₳20,000
• Development Environment. = ₳2,500
• User feedback Integration = ₳5,000

Total = ₳27,500

Milestone 4:

1. Testing Operations:

• Systems Testing = ₳7,500.
• Debugging and code optimization. = ₳12,500
• Security Optimization. = ₳17,500
• Specialized Testing Tools and Equipment. = ₳3,000

Total = ₳40,500

Milestone 5:

1. Deployment and Documentation.

• Offchain depolyment and hosting = ₳10,000
• Infrastructural cost = ₳1,250
• Documentation and user guide creation. = ₳7,500
• Licensing Finalisation. = ₳1,875

Total = ₳20,625

Final Milestone:

1. Product Marketing. = ₳17,500
2. User support system. = ₳5,000

Total = ₳22,500

Total cost in Ada at price $0.4 = ₳196,375 Ada

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

The cost of the project reflects the cost of the following:

• Smart Contract Development and Testing.
• Frontend Development and Testing.
• Dapp Deployment and Hosting.
• seeking legal advisory about licensing (Undecided).
• Onboarding.

The project would increase trust within the user community by having a backup for their seed phrase. The sense of safety in having a wallet seed backup would build end-user trust and would encourage the onboarding of more members into the Cardano community.