Argus AI: Zero-Subscription SaaS Model For NFT Counterfeit Protection

[GENERAL] Name and Surname of Main Applicant

Anthony Capitan

[GENERAL] Email address of Main Applicant

anthonycapitan@protonmail.com

Additional Applicants

• Giovanni Gargiulo 
• Chadi Nassar

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

5

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.” in this field.

No dependencies.

[GENERAL] Will your project outputs be fully Open Source?

Yes

[GENERAL] If NO, please describe which outputs are not going to be open source. If YES, please write “Project will be fully open source.” in this field.

Project will be fully open source. PLEASE NOTE: The Argus API itself, which is already functional, and was developed outside the scope of this project, will remain proprietary, but all code relevant to this new integration model of Argus will be open-source, and the legal agreement which may be used as a framework / template for this SaaS integration model will be made public to ease integration for NFT platforms. 

[METADATA] Category of Proposal

NFTs

[METADATA] SDG rating

SDG 9 (Industry, Innovation, and Infrastructure) and SDG 17 (Partnerships for the Goals)

[IMPACT] Please describe your proposed solution.

Towards the end of 2021, our team identified NFT counterfeits as a massive problem on Ethereum and a growing problem on Cardano. At the height of the last bull market, 80% of the NFTs being minted on the world’s leading marketplace, OpenSea, were “plagiarized works, fake collections, and spam.” (1)

We anticipate the resurgence of this problem in the next NFT bull market, especially since the ever-growing number of NFTs being minted is providing ever-more opportunities for bad actors to create counterfeit NFTs. Moreover, we expect that a growing number of fake NFTs will be cross-chain counterfeits in the future: counterfeits copied from one blockchain then reminted and sold on another blockchain. And because there are already millions of NFTs in circulation across many blockchains, the only way to reliably defend NFT collectors from this problem is by using a cross-chain AI protocol. 

In response to this problem – and with help from a funded, Catalyst Fund 8 proposal – we developed Argus, which uses AI to identify NFT counterfeits on Cardano. With help from a funded, Fund 9 proposal, we built a proof of concept to develop cross-chain, authentication functionality across Cardano, Ethereum, and other EVM blockchains. And we added functionality to Argus to protect Cardano NFT collectors from unwittingly buying copies of some of the most popular, Ethereum NFT collections.

While marketplace implementation of Argus has already brought considerable benefits to the Cardano NFT ecosystem (which we’ll discuss below), the one major obstacle standing in the way of its integration with more marketplaces is Argus’ current delivery/integration model. This model – a typical SaaS model wherein marketplaces pay a monthly subscription fee to license the Argus API – is currently not ideal for Cardano marketplaces due to current market conditions.

Also, marketplaces striving to become as decentralized as possible are generally opposed to a typical SaaS subscription model, as it shifts responsibility for due diligence on NFTs away from the decentralized community, and towards a centralized development team. Teams working on decentralized marketplaces are opposed to standing as market gatekeepers (and potential bottlenecks), “verifying” NFT projects for their users prior to listing those projects or granting them visibility. That said, users should be provided with tools to quickly and easily do their own due diligence on projects and particular NFTs prior to buying. And this is especially the case on decentralized marketplaces where the responsibility of due diligence is left entirely to the user. 

For these reasons, we intend to build an open-source, zero-subscription integration model that will allow NFT marketplaces to adopt Argus easily and cost-effectively, thus democratizing access to robust counterfeit detection. And by also working with a qualified SaaS attorney to draft a legal framework for licensing the API, we we'll promote transparency and ease API adoption.

(1)https://www.engadget.com/opensea-free-minting-tool-220008042.html

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

In brief, Argus helps build trust and good will for NFT marketplaces, because it provides NFT buyers a tool to quickly and easily get assurance that the NFT they're viewing is an original. And given that both intra-chain and cross-chain counterfeits will become an increasingly prevalent and difficult problem to manage as the overall size of the NFT market grows, the development of AI-powered solutions like Argus is critical.

On blockchains like Ethereum, similar NFT counterfeit solutions like Optic have garnered valuations of tens of millions of dollars by prominent VCs for the value they bring to the EVM ecosystem, but Argus is the only solution dedicated to protecting the Cardano ecosystem. And given market conditions, the maintenance and improvement of Argus, as well as the broad distribution of it's benefits to users across Cardano, depends on the development of the proposed SaaS model - which optimizes product-market fit.

[IMPACT] How do you intend to measure the success of your project?

We intend to measure the success of our project through a mix of quantitative and qualitative metrics:

API Integration: A key indicator of success is the number of platforms that integrate our API. Our target is at least five Cardano NFT platforms within the first year of launching.

API Usage: We will track the number of users who connect their wallets to our API. This measure will provide insights into the direct use of our API.

Number of Counterfeit NFTs Detected: We'll keep track of how many times marketplace customers are warned that Argus has determined an NFT being viewed is a counterfeit.

[IMPACT] Please describe your plans to share the outputs and results of your project?

We will disseminate the outputs and results of our project using various methods:

• Publishing of an integration guide
• Monthly progress reports to Project Catalyst
• Participating in relevant events, webinars, podcasts, and interviews upon completion of PoC.
• Creation of integration support documentation
• Creation of Demo Video and Sales Deck
• Final Report to Project Catalyst upon completion of project
• Publishing of legal agreement framework/template that can serve as the basis for integrating with additional NFT platforms will be published.
• Creating a blog entry andWe will create blog entries to showcase our project
• Promoting the project on various social media platforms such as Twitter and Discord.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

Our team possesses the necessary expertise and robust operational structure to deliver this project successfully, marked by a high level of trust and accountability. Here's how:

Proficient Team: Our team's strength lies in the diversity of our skills. With expertise in AI, blockchain development, legal advisory, NFTs, web development, and SaaS, we form a proficient and well-rounded unit.

Track Record of Success: Our past achievements, including the development of the Argus API, Plutus.Art (a Cardano NFT marketplace), and projects in Catalyst Funds 8 and 9 completed on-time and on-budget, speak volumes to our ability to successfully deliver complex projects.

Transparent Operations: Our operational model is built on transparency. We plan to share regular updates, engage with the community for feedback, and maintain clear accounting records, including the use of escrow services, reports, and receipts for fund management.

Defined Mission and Strategy: Our clear vision, mission, and roadmap, coupled with a detailed budget breakdown and risk management plan, ensure a structured and strategic approach to the project.

Risk Management Measures: To safeguard the project from potential challenges, we've developed robust risk management strategies. These include backup plans for key tasks and routine risk assessment updates.

Clear Roles & Responsibilities: We operate with a clear delineation of roles and responsibilities for each team member. This structure promotes an efficient work environment and underlines our commitment to accountability and trust.

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

• To develop a new integration model for the Argus platform - an AI/ML platformed designed to identify counterfeit NFTs - with optimal product/market fit. 
• To integrate our API with Plutus.Art as a proof of concept and a showcase for other platforms.
• To license our API to other Cardano NFT platforms at minimal cost.
• To further protect Cardano NFT users from counterfeit NFTs.
• To promote the adoption of Cardano as the safest and most trusted platform on which to create, buy and sell NFTs.

[CAPABILITY/ FEASIBILITY] Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

• Milestone 1: Plutus.Art Integration Design
• Tasks:
• UI Design of Argus Notification Interface
• SC Development for opt-in, API-pull fee
• Front and backend development for API integration
• Timeline: 1 month

• Success criteria: A fully designed interface for Argus notifications and a developed Smart Contract (SC) for opt-in, API-pull fee, and API integration.
• Milestone 2: API Development and Testing
• Tasks:
• Test the API functionality, performance, security, usability, compatibility, and scalability using various tools and methods.
• Document the API specifications, features, usage, and examples using clear and comprehensive documentation.
• Timeline: 2 months

• Success criteria:
• An API that can provide personalized NFT recommendations based on wallet data to external platforms and users is developed and tested.
• The API meets the requirements and expectations of functionality, performance, security, usability, compatibility, and scalability.
• The API documentation is clear and comprehensive and covers all the aspects of the API specifications, features, usage, and examples.
• Milestone 3: Beta Testing & Feedback
• Tasks: Collect user feedback and optimize the integration based on insights.
• Timeline: 1 month

• Success criteria: Valuable user feedback received and implemented for improvements in the system.
• Milestone 4: Integration with Plutus.Art
• Tasks:
• Integrate our API with Plutus.Art, a leading Cardano NFT marketplace, as a proof of concept and a showcase for other platforms.
• Invite Plutus.Art users to connect their wallets to our API and receive personalized NFT recommendations based on their transaction history.
• Collect feedback from Plutus.Art users on their experience and satisfaction with our API and its recommendations.
• Timeline: 2 months

• Success criteria:
• Our API is successfully integrated with Plutus.Art and provides personalized NFT recommendations to its users based on their wallet data.
• Plutus.Art users are able to connect their wallets to our API easily and receive relevant and appealing NFT suggestions.
• Feedback from Plutus.Art users is positive and constructive and helps us improve our API and its recommendations.
• Milestone 5: Licensing Framework and Documentation
• Tasks:
• Work with a SaaS attorney to draft the licensing framework and agreement for our API that will allow other platforms to license and integrate our API at minimal cost.
• Document the licensing framework and agreement and provide clear and comprehensive information on how other platforms can license and integrate our API.
• Timeline: 1 month

• Success criteria:
• A licensing framework and agreement for our API is drafted and reviewed by a SaaS attorney and meets the legal and ethical standards of SaaS products and services.
• The licensing framework and agreement is documented and provides clear and comprehensive information on how other platforms can license and integrate our API.
• Milestone 6: Marketing and Outreach to Other Platforms
• Tasks:
• Promote our project and our API to the Cardano NFT community and other platforms using various channels and methods, such as website hosting, social media ads, events, webinars, podcasts, interviews, etc.
• Reach out to other Cardano NFT platforms and offer them to license and integrate our API at minimal cost.
• Provide support and guidance to other platforms that want to license and integrate our API.
• Timeline: 1 month
• Cost: $7,500 ($10,000 for marketing and outreach, $5,000 for project management)
• Success criteria:
• Our project and our API are widely known and recognized by the Cardano NFT community and other platforms.
• At least 5 Cardano NFT platforms express interest in licensing and integrating our API within one year of launching it.
• We provide support and guidance to other platforms that license and integrate our API and ensure a smooth and successful integration process.

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

Milestone 1: Open-Source Integration Development:

• Deliverable: Open-source code for Argus API integration.
• Outcome: Enable other Cardano NFT platforms to integrate with Argus API seamlessly.

Milestone 3: Beta Testing & Feedback:

• Deliverable: Beta version of Argus API integrated with Plutus.Art.
• Outcome: Validate the effectiveness of Argus API in identifying counterfeit NFTs and improve its performance based on user feedback.

Milestone 4:  Success criteria:

•   Our API is successfully integrated with Plutus.Art and provides personalized NFT recommendations to its users based on their wallet data.
•   Plutus.Art users are able to connect their wallets to our API easily and receive relevant and appealing NFT suggestions.
•   Feedback from Plutus.Art users is positive and constructive and helps us improve our API and its recommendations.

Deliverables: Official launch of Argus API and a marketing campaign.

Outputs: Adoption of Argus API by Cardano NFT platforms and an increase in user trust in Cardano as a safe platform for NFT transactions.

Milestone 5:  Success criteria:

•   A licensing framework and agreement for our API is drafted and reviewed by a SaaS attorney and meets the legal and ethical standards of SaaS products and services.
•   The licensing framework and agreement is documented and provides clear and comprehensive information on how other platforms can license and integrate our API.

Deliverables:

Outputs:

Milestone 6: Success criteria:

•   Our project and our API are widely known and recognized by the Cardano NFT community and other platforms.
•   At least 5 Cardano NFT platforms express interest in licensing and integrating our API within one year of launching it.
•   We provide support and guidance to other platforms that license and integrate our API and ensure a smooth and successful integration process.
• Deliverable: Regular updates to the Argus API based on user feedback and technological advancements.
• Outcome: Continuous improvement in the performance of Argus API and sustained user satisfaction.

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

• Plutus.Art web developer: $12,000. A full-time web developer who will be responsible for UI/UX, API integration, front-end development and testing.
• ArgusNFT technical support: $2,000 Support with API integration, testing and system monitoring.
• SaaS attorney: $5,000. A professional SaaS attorney who will help us draft the licensing framework and agreement for the new API SaaS model.
• Marketing, outreach and sales: $3,500. The expenses related to promoting our project and our API to the Cardano NFT community and other platforms, such as website hosting, social media ads, events, webinars, podcasts, interviews, etc.
• Project management: $2,000. The costs of managing the project, such as communication tools, software licenses, hardware, etc.
• Documentation: $1,500. The costs of creating clear and comprehensive documentation for our API integration, such as video tutorials, user guides, FAQs, etc.
• Reporting: $750. The costs of reporting our progress, achievements, challenges, and learnings to the Catalyst community and the Cardano Foundation, such as surveys, analytics software, etc.

Total Budget: $26,750 (~84,040 ADA)

[RESOURCES & VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

We believe that the cost of the project represents value for money for the Cardano ecosystem because:

• We have based our budget on realistic estimates of the time and resources required to complete this project with high quality standards.
• We have benchmarked our costs against the average wage in our countries of residence and the typical freelance rates in our industry (ML/web development/blockchain).
• We have considered alternative sources of funding or revenue for this project, such as grants, sponsorships, or fees, but we have concluded that Catalyst funding is the most suitable and sustainable option for us at this stage.
• We have demonstrated that our project will bring significant benefits and value to the Cardano ecosystem, such as increasing NFT sales, user retention, and adoption, enhancing NFT diversity, quality, and discoverability, and fostering collaboration and interoperability among NFT platforms.

[IMPORTANT NOTE] The Applicant agreed to Fund10 rules and also that data in the Submission Form and other data provided by the project team during the course of the project will be publicly available.

I Accept