Our objective is to:

• Invent a way to represent transaction data (e.g. proof of token ownership or proof of a payment) as a PRISM VC - a “token-based credential”.
• Implement the business logic and no-code workflow for issuing the token-based credential in response to a Cardano smart contract (SC) transaction, inside our existing and proven no-code SSI SaaS platform (ProofSpace).

Our audience is anyone who:

• Needs to verify proof of ownership or proof of transaction in order to complete a user goal.
• Needs to do so in crypto, web 3.0 or otherwise decentralized settings.
• Has a particular concern for end user privacy and cost reduction.

Example use cases:

• OAuth-based access to some site for users that have a token-based credential proving that they have paid their subscription.
• Proof that a certain crypto wallet is held by a certain certain user (this would combine token-basd credential solution with KYC-verified token solution).
• Access controls to a physical site through proof of ownership or payment, e.g. a hotel room, apartment, etc.

The output will be:

• Open source documentation for implementing token-based credentials with Cardano and PRISM
• User interface for no-code implementation of token-based credential workflows
• User interface for utilization of token-based credentials by end users

The impact will be:

• High-quality R&D made available to the Cardano community.
• Accelerated production deployment for high-value and repeatable use cases due to:
• Low cost and fast set-up, testing and deployment of token-based credentials in the ProofSpace Dash.
• Low cost of executing due to use of token-based PRISM VC in the smart contract.
• Easy configuration and publication of token-based credential workflows for end users in the ProofSpace App.

The proposed solution addresses the challenge in the following ways:

The overall question to be addressed by the challenge is: “What solutions can we develop and implement with Atala PRISM to have the most positive impact and opportunities for rapid growth of Cardano”.

This proposal supports both positive impact and opportunities for rapid growth of Cardano.

• Allowing the community to represent data that is held in Cardano blockchain (e.g. proof of token ownership) as a verifiable credential opens up new use cases for PRISM relating to KYC, access controls, DAO management and DAO governance, in particular for use cases where the verifiable proof of ownership or payment can be executed through a smart contract.
• Use of VCs in such solutions may also reduce the cost of smart contract execution.

Two of the areas of focus of the challenge are:

• Interoperability: PRISM credentials and Hyperledger credentials may be used interoperably in the ProofSpace wallet, enabling services access to both ecosystems and increasing the possibility of Hyperledger-based services switching to or increasing their usage of PRISM-based services.
• Education, Career and Reputation Primitives: token-based credentials with PRISM is an enabling technology that could easily be used by projects covering these verticals to support with their user identity, access and compensation management flows.

The project is highly relevant to the key metrics for the challenge:

• The sum of realized production pilots or launches in 2022: this proposal is an enabler to a new range of excellent use cases for PRISM. Our explicit goal is to establish production pilots in 2022 which utilize the developed technologies.
• Discovery of repeatable patterns in use-cases: use of PRISM credentials to attest to proof of ownership or payment is a narrow value proposition which can be used across a range of possible use cases, of which we have already identified three in this proposal.
• The number of issuers, holders, and verifiers: this proposal may enable a new set of issuers, holders and verifiers by enabling a new set of use cases, for example among crypto and DeFi communities.
• The number of verifications performed on credentials in production: by creating use cases that involve verification of PRISM credentials based on blockchain data, this will almost certainly occur if the proposal’s success metrics are met.

1. Risk: Linking DID with ADA address via special transaction can be complex (we need some method to verify that DID owner owns this ADA address and provide users a way to revoke that link)
2. Mitigation: Do research at the beginning of the project to generate alternative ways for linking. E.g. For some scenarios we can require proof of a link between ADA address and DID by requiring payment before completing an operation.
3. Risk: Until we complete further research we are not 100% sure that token-based credentials can be created without restriction on smart-contract for native tokens.
4. Mitigation: The only way to navigate this risk is through R&D. In the worst case, we will publish the solution with this restriction and try to make it as generic as possible.

Tasks, Deliverables and Milestones are provided below

R&D Phase. (Apri/May):

1. Linking ADA address and DID. We will explore two strategies:
2. Define a method, which would automatically derive PRISM DID from the same key phrase as ADA wallet.
3. Define API and smart-contract for submitting DID as Datum into linked transactions, with proof of key and define a schema for validation.
4. Schema definition for Transaction Credential and requirements for transaction for specific cases (like specifying duration of credential (or attribute) validity in issuing transactions and extracting other credential fields from Datum)
5. Template for support smart-contract if needed.

Implementation phase. (June/July)

For these special forms of transaction (i.e. where transactions are linked with a DID for scenarios such as payment confirmation) define an open-source method to run it:

1. Mobile wallet side is addressed through the separate proposal in Fund 8 (see <https://cardano.ideascale.com/c/idea/400391>)
2. From server-side wallet (as standalone libraries, ready for inclusion in other wallets)
3. Define a UI for issuing credential in ProofSpace dashboard
4. Testing and Fixing

3. Find pilot partners.

We aim to identify pilot partners from the Catalyst community to collaborate with on deploying this innovation into production use cases for Fund 9.

Our budget for this project is $29,267. Our budgets are calculated based on the cost of each phase using the format below. Please note the R&D phase can result in unexpected or different specifications to those we anticipate, which may result in a slight adjustment to the cost allocations. We didn’t want this proposal to go over $30k so we will absorb around $5k of anticipated costs from implementation and finding pilot partner phases (i.e. the total budget would have been closer to $35k).

Phase

• Detail
• $Cost

<u>BUDGET</u>

R&D phase

• Exploration of two possible strategies:
• $7,910

<span class="ql-cursor"></span>Implementation phase

• Finalize and publish specification and implementation of DID/Ada address link generation.
• $3,270
• API for retrieving token info and attribute with additional data, such as expiration time,
• $6,040
• Implementation of no-code configuration UI for issuing token-based credential,
• $9,047
• End-to-end testing support framework:
• $3,000
• <u>PHASE TOTAL</u>: $21,357

Find pilot partners

• $0

TOTAL

• $29,267

Viktor Radchenko - CTO and mobile dev for ProofSpace. 20-year R&D track record. Skilled in project and product management, solution architecture, science consulting, blockchain, mobile, web, game, and embedded development. 6 publications in peer-reviewed journals.

Ruslan Shevchenko, PhD - Solution Architect and BE for ProofSpace. Skilled architect and scientific researcher with 30-years’ experience across blockchain, telecom, advertising and financial services. Researcher in the Institute of Software Systems and Founder of several successful ventures including NBI (an Internet Provider), GradSoft (a software development firm) and UA Scala user group. 10 publications in peer-reviewed journals, co-authored book entitled “Methods of Algebraic Programming” and is an active columnist for the Ukrainian developers' community portal.

Alexey Hodkov - FE/BE for ProofSpace. Talented web backend and frontend solution architect and developer with 17-years’ experience. Team leader, tech mentor and CTO in complex projects for various companies like Yandex LLC and Megogo.

Viacheslav Zhelobkov - Senior Mobile Dev for ProofSpace. Enthusiast software developer with 20 years experience in wide variety of IT areas including embedded, mobile, web, backend, etc. in roles from solo founder to Solution Architect and CTO.

Nick Mason - CEO for ProofSpace. Experienced social entrepreneur and venture analyst with a proven track record of social venture funding and of starting and growing ventures in Europe and Africa. Background as Consultant venture analyst at Toniic, Head of Portfolio and Operations at BeyondMe, UK Director for Sierra Leone based education charity and Trustee for Street Child. Co-Founded ProofSpace (formerly ZAKA in 2019).

Project progression will be measured by openly reporting on the state of deliverables in the monthly Catalyst reporting form and end of project reports. We will provide evidence to support the project progression as follows:

1. June
2. We will publish documentation for token-based credentials in Cardano and PRISM.
3. July
4. We will share a video demo of no-code set-up, deployment and working use of token-based credentials in ProofSpace.
5. July/August
6. We will announce pilot implementation partners.

We will measure the project’s success according to the following criteria being met during and after the project’s completion:We will add more detail here in due course, but for now:

1. Project in progress: Published documentation for token-based credentials in Cardano and PRISM.
2. Project almost complete: Video demo of no-code set-up, deployment and working use of token-based credentials in ProofSpace.
3. Project success: AnnouncedNamed pilot implementation partners.
4. Project sustained success: Growing number of production use cases utilizing the capabilities developed in this proposal and corresponding growth in number of token-based credentials issued and/or verified.
5. Related: we hope to also see an increase in (i) collaborative Catalyst proposals that specifically utilize this capability in use cases that we may or may not be currently aware of, (ii) independent or collaborative Catalyst proposals where our own, or joint, R&D results in ways to deepen the related capabilities of the proposed solution.

This proposal builds on an F7 proposal entitled “No-Code SSI SaaS for Mass Adoption” (see https://cardano.ideascale.com/c/idea/385204). The implementation of Atala PRISM credentials in ProofSpace SSI no-code platform will support the use of PRISM token-based credential workflows.