Please describe your proposed solution

The proposed solution aims to develop a framework for Cardano service layer to achieve the following:

1. No new blockchain engineering - The Cardano service layer framework concept here would use the existing Cardano mainnet infrastructure as the base. There will be no new service layer with new blockchain design and engineering involved, so as to avoid wasted effort project by project.
2. Customized protocol parameter - The framework would provide easy ways to spin up different side chains with customized protocol parameters, making zero transaction fee, zero min utxo, unlimited utxo size architecture possible.
3. Allow for restart with persistent record - The service layer could be stopped anytime as requested, or may it be due to an accident, there are ways to recover and continue the operation of the blockchain.
4. Immutability leveraging on security primitive of Cardano L1 - For all generally less secured by nature, the side chain could still leverage on Cardano L1’s robustness to provide a certain level of trust to users on security and immutability.

With the above framework, any current or future Cardano DApps can have higher flexibility in aligning business requirements when it comes to build on Cardano.

A table illustrating the comparison amongst sidechains / L2, Midnight (as an example of of privacy CSL), and this CSL framework:

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

Any current or future Cardano DApps can have higher flexibility in aligning business requirements when it comes to build on Cardano.

It benefits 2 categories of potential users:

1. Existing Cardano projects - All existing Cardano projects can adopt the framework to off-load all or part of the computationally heavy operation from the Cardano mainnet, improving user experience.
2. Potential Web3 projects - It lowers the barriers of entering Cardano ecosystem by allowing more flexible user experience, without significant extra investment into the technology apart from onboarding into Cardano mainnet.

It could also contribute to the development of JS libraries such as MeshJS to support ecosystem adoption. In this proposal new features would also be built into MeshJS, benefiting an existing wide range of Cardano developers. It would also start the chaining effects amongst other development tools such as Yaci DevKit where integrating and infrastructure are improving altogether.

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?

Our team has strongly committed and experienced members, providing all required skill sets and expertise to successfully implement the proposed solution

Trust and accountability:

• Track record on Cardano ecosystem participation
• Team members have a track record of contributing in Cardano open source
• Team members are professionals across a spectrum of industries, including banking and finance, cyber security and software engineering, with chartered status with different professional bodies.

Approach validation

• Market validation conducted with Defy, confirming the research indeed reveals a huge market demand, potentially attracting next wave of users to Cardano
• On Defy’s validation, 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.

Technical approach feasibility research

• SIDAN Lab and MeshJS team could be represented as an expert group from application level. Research and early studies are carried out to confirm MeshJS can support building transactions interacting with a potential parallel network.
• Validation discussion has been carried out with engineers at the engineering department of Cardano Foundation to ensure the approach is technically sound and feasible.

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

Milestone 1: Milestone 1: Proposal Onboarding and Planning (0.5 Month)

Objective: Establish a solid foundation for the project by setting up the necessary infrastructure, assembling the team, and defining project management practices.

Activities:

• Proposal onboarding and project management tools setup
• Have a detailed breakdown of tasks for all the activities covered

Acceptance Criteria & Evidence:

• Project management tools and systems set up.
• Publicly accessible link breaking down all activities
• Publicly accessible Github repository link

Milestone 2: Milestone 2: Parallel Cardano Blockchain MeshJS Integration (1 Month)

Objective: Try to start another Cardano blockchain network with identical behavior from genesis, and transaction working with MeshJS

Activities:

• Research on existing Cardano blockchain infrastructure and select the needed infrastructure for starting Cardano node with multiple core and relay nodes
• Test starting a parallel Cardano network and sending transaction built by MeshJS

Acceptance Criteria & Evidence:

• A markdown file in the public Github repository, stating the exact flow of starting the network, building transaction and submitting transaction.

Milestone 3: Milestone 3: Customized Protocol Parameters (1 Month)

Objective: To introduce customized protocol parameters feature with the parallel Cardano blockchain

Activities:

• Research and develop the approach to exposing altering protocol parameters at the time of starting the parallel Cardano network (e.g. fees and stakepools keys rotation)
• Upgrade MeshJS to support customized protocol parameters

Acceptance Criteria & Evidence:

• A markdown file in the public Github repository, stating the exact flow of starting the network, building transaction and submitting transaction with customized protocol parameters.
• A published meshsdk/core node module public visitable in on npm registry with documentation on how to interact with customized protocol parameter

Milestone 4: Milestone 4: Persistent Record & Immutability (1 Month)

Objective: Research and develop a way to allow the parallel blockchain to restart without losing network record and inherit some security benefit from Cardano mainnet for immutability

Activities:

• Research and develop the parallel blockchain framework to have data persistence upon failure and nodes updates.
• Research and develop the mechanism of converting trust on security of Cardano mainnet to the framework parallel blockchain, making it a side chain framework.

Acceptance Criteria & Evidence:

• A markdown file in the public Github repository, stating the exact flow of starting the network, building transaction and submitting transaction.
• A documentation stating the full mechanism of data immutability support from Cardano mainnet.

Milestone 5: Milestone 5: Framework DevOps (1 Month)

Objective: To establish the devops workflow to streamline the start of any customized Cardano side chain for DApps

Activities:

• Packaging the setup with Docker, GCP Terraform so anyone can set up Cardano Service Layer with multiple nodes
• With the DevOps setup, starting a customized Cardano service layer for Defy’s application, use it as an demonstration for the community

Acceptance Criteria & Evidence:

• A documentation stating how to run the DevOps workflow to start the Cardano service layer with users inputs such as customized protocol parameters.
• A documentation stating how to run the DevOps workflow to restart the Cardano service layer with given states.
• Publicly accessible link with a journal on the whole deployment flow of Defy’s application customized service layer, stated with current status of the service layer (e.g. number of blocks / epoch passed or if it is stopped).

Final Milestone: Final Milestone: Complete Documentation (0.5 Month)

Objective: Provide full set of documentation, bringing the proposal result to the community

Activities:

• Complete the documentation such that fellow Cardano dev can start the side chain and interact with ease
• Hosting a community in both MeshJS & SIDAN Lab discord for feedback, question and communication
• Prepare the project close-out report and video

Acceptance Criteria & Evidence:

• A full set of public documentation on all new features and changes brought by this project
• Dedicated channel in SIDAN Lab discord server in regards to the project deliverables
• Announcement in MeshJS discord server about all new features provided by this project
• Publicly available project close-out report and video

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

This is a collaborative project led by SIDAN Lab and MeshJS, with an aligned objective of bringing the next wave of explosive adoption on the Cardano blockchain.

SIDAN Lab. SIDAN Lab possesses the know-how of building on Cardano and consistently contributing to the Cardano open source throughout the years. Main engineers involved in this proposal from SIDAN Lab would be

• Hinson Wong - Cardano engineer.
• Tsz Wai Wu - Cardano engineer
• Jackal Leung - DevOps and Software Engineer
• Anson Chui - DevOps and Security Engineer

MeshJS. MeshJS provides open source technology stacks on the Cardano blockchain that facilitate the seamless integration of DApp built on Cardano, significantly diminishing the time required for the development and deployment of blockchain solutions. Main engineer involved in this proposal from MeshJS would be

• Jingles - Cardano engineer

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. Main personnels involved from Defy would be:

• Sebastien Picard (CEO) - www.linkedin.com/in/zebpic
• Eelee Lua (CoS) - https://www.linkedin.com/in/eeleelua/
• Julia Chin (CRO) - https://www.linkedin.com/in/pekyee-julia-chin/

Part of the engineering efforts of this proposal is supported by the engineering department at Cardano Foundation, making sure all works carried out are on top of the latest development around Cardano node without reinventing the wheel.

Please provide a cost breakdown of the proposed work and resources

Milestone 1: Proposal Onboarding and Planning (1 Month)

• ADA 10,000 - Proposal onboarding and project management tools setup
• ADA 20,000 - Have a detailed breakdown of tasks for all the activities covered
• Total Budget - ADA 30,000

Milestone 2: Parallel Cardano Blockchain MeshJS Integration (1 Month)

• ADA 25,000 - Research on existing Cardano blockchain infrastructure and select the needed infrastructure for starting Cardano node with multiple core and relay nodes
• ADA 25,000 - Test starting a parallel Cardano network and sending transaction built by MeshJS
• Total Budget - ADA 50,000

Milestone 3: Customized Protocol Parameters (1 Month)

• ADA 20,000 - Research and develop the approach to exposing altering protocol parameters at the time of starting the parallel Cardano network (e.g. fees and stakepools keys rotation)
• ADA 20,000 - Upgrade MeshJS to support customized protocol parameters
• Total Budget - ADA 40,000

Milestone 4: Persistent Record & Immutability (1 Month)

• ADA 20,000 - Research and develop the parallel blockchain framework to have data persistence upon failure and node updates.
• ADA 20,000 - Research and develop the mechanism of converting trust on security of Cardano mainnet to the framework parallel blockchain, making it a side chain framework.
• Total Budget - ADA 40,000

Milestone 5: Framework DevOps (1 Month)

• ADA 20,000 - Packaging the setup with Docker, GCP Terraform so anyone can set up Cardano Service Layer with multiple nodes
• ADA 10,000 - With the DevOps setup, starting a customized Cardano service layer for Defy’s application, use it as an demonstration for the community
• Total Budget - ADA 30,000

Final Milestone: Complete Documentation (1 Month)

• ADA 5,000 - Complete the documentation such that fellow Cardano dev can start the side chain and interact with ease
• ADA 2,500 - Hosting a community in both MeshJS & SIDAN Lab discord for feedback, question and communication
• ADA 2,500 - Prepare the project close-out report and video
• Total Budget - ADA 10,000

No dependencies

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

With the amount of budget requests compared to the potential benefits brought to the Cardano community, the value for money could be justified. Reiterating on impacts:

1. Unleash market share for existing Cardano projects - All existing Cardano projects can adopt the framework to off-load all or part of the computationally heavy operation from the Cardano mainnet, improving user experience. For example, DeltaDeFi’s trading protocol leveraging this architecture could bridge the trillions dollars of CEX trading volume to Cardano.
2. Potential Web3 projects - It lowers the barriers of entering Cardano ecosystem by allowing more flexible user experience, without significant extra investment into the technology apart from onboarding into Cardano mainnet. For example, Defy’s dKYC application leveraging this architecture could unleash billions of dollars of market share.
3. Cardano Infrastructure - It could also contribute to the development of JS libraries such as MeshJS to support ecosystem adoption. In this proposal new features would also be built into MeshJS, benefiting an existing wide range of Cardano developers. It would also start the chaining effects amongst other development tools such as Yaci DevKit where integrating and infrastructure are improving altogether.