Building a financial ecosystem through digital identity and stablecoin for maximal social impact

[GENERAL] Name and Surname of Main Applicant

André Eilertsen for IAMX AG

[GENERAL] Email address of Main Applicant

andre@iamx.id

Additional Applicants

Florian Volery - Liqwid Labs

Dennis Mittmann - IAMX AG

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

10

[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?

No

[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.

The code surrounding the stablecoin and the DID technology (including biometric machines) will not be open source.

[METADATA] Category of Proposal

RealFi

[METADATA] SDG rating

SDG Goals

8 - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9 - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

10 - Reduce inequality within and among countries

11 - Make cities and human settlements inclusive, safe, resilient and sustainable

SDG Subgoals

8.1 - Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries

8.2 - Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors

8.3 - Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

8.8 - Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment

9.1 - Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all

9.3 - Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets

9.a - Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States

9.b - Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities

10.5 - Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations

10.6 - Ensure enhanced representation and voice for developing countries in decision-making in global international economic and financial institutions in order to deliver more effective, credible, accountable and legitimate institutions

10.b - Encourage official development assistance and financial flows, including foreign direct investment, to States where the need is greatest, in particular least developed countries, African countries, small island developing States and landlocked developing countries, in accordance with their national plans and programmes

11.c - Support least developed countries, including through financial and technical assistance, in building sustainable and resilient buildings utilizing local materials

[IMPACT] Please describe your proposed solution.

The proposed solution is to build a new ecosystem leveraging the Cardano blockchain. The project will incentivize the usage of a “Digital Identity + stablecoin” solution to create a digital public infrastructure (DPI) enabling financial inclusion and economic opportunities.

The project will provide the ecosystem's cornerstones, allowing any third party or NGOs to join this new DPI. The project is not replacing the existing social actors, but rather providing a free decentralized platform to build on top of it.

The project will also finance the deployment of ID Terminals collecting biometric data of individuals in Africa to provide them an identity. Biometrics machines allow the collection of unique data to give an identity to the excluded people. When combined with a digital wallet, everyone can be included and benefit from the digital economy.

The project is unique as it leverages blockchain technology to address the issues of financial inclusion and identity. It will benefit the unbanked and unidentified populations, particularly in Africa and Asia Pacific. This is important to Cardano as it aligns with its mission of providing financial services to the world's unbanked population.

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

The proposed solution addresses the challenge by providing a digital identity and stablecoin solution on the Cardano blockchain. This combination will boost the Cardano ecosystem by creating a positive network effect to grow the user base and solution's utility.

The project will have a significant impact on the Cardano ecosystem. It will bring more users to the ecosystem, particularly from underprivileged groups in developing countries, thus expanding Cardano's reach and influence. The project will also strengthen the ecosystem by providing a solution to a key problem - financial inclusion and identity.

The project will also contribute to the Cardano ecosystem by providing a platform for other actors (NGOs, stakeholders, etc.) to join and combine forces for a better impact. This will foster a more vibrant and diverse ecosystem.

In terms of quantifiable impact, the project aims to provide digital identity and financial services to a significant portion of the 2 billion unbanked and unidentified individuals worldwide. This will likely result in a substantial increase in the number of users and transactions on the Cardano blockchain.

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

The success of the project will be measured using both quantitative and qualitative metrics.

Quantitative metrics include:

• Number of identities created
• Number of transactions performed
• Number of women with an identity
• Number of women having taken a course on digital and financial education

Qualitative metrics include:

• User feedback: The project will gather user opinions to assess the effectiveness and impact of the solution.
• Social impact: The project will assess its impact on financial inclusion, social mobility, and gender equality.
• Ecosystem development: The project will evaluate its contribution to the development of the Cardano ecosystem.

The project's innovation will enhance Cardano's productivity and growth by expanding its user base, fostering financial inclusion, and promoting education about digital and financial literacy. This will have both short-term and long-term benefits for the Cardano ecosystem.

Efficiency Improvements: We will measure the time and cost savings achieved by users through the streamlined document verification and digital signing processes facilitated by our platform. These metrics will indicate the tangible benefits and increased productivity resulting from the adoption of our solution

Our innovation will bring immediate benefits to Cardano's productivity by providing a practical solution to document authenticity verification and fraud prevention. It will streamline transactions, reduce the risk of fraud, and improve overall efficiency, resulting in faster and more reliable processes.

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

The project plans to share its outputs and results in several ways:

Collaboration with Third Parties: By providing the ecosystem’s cornerstones, the project will enable any third party or NGOs to join this new DPI. The project is not replacing the existing social actors, but rather providing a free decentralized platform to build on top of it.

Scalability: The project's model can be replicated all around the world. Many different stakeholders in the social impact environment are looking for such a platform to connect with.

Engagement with Local Communities: The project will cooperate with local communities to explain DID and educate the people about blockchain. This will help in creating a network effect within the communities and a positive network with other NGOs or third parties to improve this nascent ecosystem.

The results generated from the project will be used in further research and development activities. The project aims to continuously improve and expand its offerings based on the results and feedback received.

The project's ambition is to set up the cornerstones to further develop the blockchain ecosystem over time, partner with different communities for further adoption, and replicate the model all around the world with a focus in Africa.

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

The project team demonstrates high levels of trust and accountability through their strategic planning, implementation approach, and commitment to social impact.

Strategic Planning: This plan includes onboarding new companies to use the stablecoin and DID solution, which will support the ecosystem's growth and adoption.

Implementation

Approach: The project team plans to deploy biometrics machines in an African metropole, cooperate with local communities to explain DID and educate people about blockchain, and set up wallets for people to use the blockchain. This approach shows their commitment to practical implementation and community engagement, but will request further funds from other actors.

Commitment to Social Impact: The project team is committed to creating a social impact in the places that need it the most. They aim to provide financial inclusion and women empowerment.

Collaboration with Third Parties: The project team is open to collaboration with any third party or NGOs, demonstrating their commitment to building a diverse and inclusive ecosystem.

Scalability: The project team leverages blockchain technology, which is secure, decentralized, and scalable, indicating their capability to handle growth and expansion.

The project team's existing capabilities, strategic approach & partnerships demonstrate that they are well-suited to deliver this project with high levels of trust and accountability.

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

The main goals for the project are:

Financial Inclusion: Provide access to identity and financial services, particularly for women and poor people in a digital financial system. This will be validated by the number of identities created, the number of women with a wallet, and the number of transactions performed.

Ecosystem Development: Build a network within communities and create a positive network with other NGOs or third parties to improve this nascent ecosystem. This will be validated by the growth and diversity of the ecosystem.

Education: Provide digital and blockchain literacy to the users. This will be validated by the number of people having taken a course on digital and financial education.

The project team will validate these goals by tracking specific metrics such as the number of identities created, the number of transactions performed, and user feedback. They will also assess the social impact of the project on financial inclusion, social mobility, and gender equality.

The project team plans to implement their approach by deploying biometrics machines in an African metropole, cooperating with local communities to explain DID and educate people about blockchain, and setting up wallets for people to use the blockchain. 

This approach will be validated by the successful deployment of the machines, the growth of the user base, and the development of the ecosystem.

To validate the feasibility of these goals, the project will conduct comprehensive testing of the platform's functionalities (test net), engage with users and stakeholders for feedback, and track key performance indicators (KPIs) such as the number of tokenized assets, trading volume, user satisfaction, and growth in the user base.

Regular reporting and analysis of these metrics will provide insights into the project's success in achieving its objectives. Additionally, the project team will leverage industry best practices and technological advancements to implement the platform's features and ensure its scalability and usability.

[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.

Finalization of Biometric machines

Finalization of biometric software.

Testing and reviews.

The biometrical terminals create digital identities, making it possible for users in developing countries to create a digital identity and onboard a new financial ecosystem built on Cardano.

 

Digital Identity

W3C standardized DIDs.

KYC/KYB including KYT

Biometrics

Creation of self-sovereign identity built on decentralized identifiers on Cardano.

W3C standardized DIDs with biometric hash. KYC/KYB, including KYT.

Stablecoin

Finalize smart contracts.

Compliance work with external partners

Creation of stablecoin

This will enable the operation of the new financial ecosystem built on digital identity + stablecoin.

 

Protocol, infrastructure and testnet

Backend

User interface

Integrate DIDs

Integrate stablecoin

Test net

Finalize the infrastructure and integrate core parts. Platform goes live on testnet for reviews and assessments. Tests with a biometric machine set up in Düsseldorf, Germany.

Deployment & main net

Transport and set up biometric machines

Deploy stablecoin in the market

Deploy platform on Cardano main net.

Public launch

This is the final part where we transport and set up the terminals, deploy the stablecoin in the market and launch the platform on mainnet.

A new era of financial inclusion built on the principles of self-sovereign identity and stablecoin for high financial inclusion & social impact.

Identifying the unidentified and banking of the unbanked, setting up of infrastructures that can be used by anyone.

The project's overall management approach involves setting up the cornerstones to further develop the blockchain ecosystem over time, partnering with different communities for further adoption, and replicating the model all around the world with a focus on developing countries.

The project team will track progress towards each milestone and adjust their approach as necessary based on the results and feedback received.

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

Finalization of Biometric machines

Deliverables: Finalized prototype software of the biometric machines.

Outputs: Biometric machines ready for deployment.

Outcome: The biometrical terminals will be used to digital

identities, making it possible for users in developing countries to create a

digital identity and onboard a new financial ecosystem built on Cardano.

Digital identity

Deliverables: Finalized W3C standardized DIDs from biometrics and KYC

Outputs: Digital

Outcome: Digital identity created on Cardano with biometrics.

KYC process on mobile and desktop for faster onboarding for those who already have a government issued identity, but lack financial inclusion.

Stablecoin

Deliverables: Finalized code for the smart contracts, successful integration with partners 

Outputs: Stablecoin ready for deployment, integrated systems with partners.

Intended Outcomes: A fully compliant stablecoin ready to be deployed in the market.

Protocol, infrastructure and testnet

Deliverables: Successful deployment of protocol on testnet, connected with biometric terminal in Düsseldorf, Germany.

Outputs: Feedback from users, developers and test reports.

Intended Outcomes: Make final adjustments and finalize the ecosystem for deployment. 

Deployment & main net

Deliverables: Successful deployment of biometric machines, stablecoin and protocol on mainnet

Outputs: Fully-functional and live platform.

Intended Outcomes: A new era of financial inclusion where the focus is to identify the unidentified and bank the unbanked.

This will work as a global fully scalable MVP and includes the deployment of 2 biometrical machines in an African metropole. The team will be working with external partners to fund the scaling and deployment of this model in new areas.

The project's progress will be tracked by measuring specific metrics such as the number of identities created, the number of transactions performed, and user feedback. The project team will also assess the social impact of the project on financial inclusion, social mobility, and gender equality.

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

Biometric machines

Remaining software developments and integration.

Transport, customs, insurance and setup.

Infrastructure.

The hardware costs are not included in this proposal as they are already financed through the IAMX ISPO.

14.000 USD

Digital identity

W3C standardized DIDs.

KYC/KYB including KYT

Biometrics

11.200 USD

Stablecoin

Finalize code for smart contracts

Legal and compliance framework

Integration with partners and ecosystem

14.000 USD

Protocol, infrastructure and testnet

Backend

User interface

Integration of core elements

Test net

Security audits

28.000 USD

Deployment & main net

Transport and set up biometric machines

Deploy stablecoin in the market

Deploy platform on Cardano main net.

Public launch

16.800 USD

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

The cost of the project represents value for money for the Cardano ecosystem in several ways:

Boosting the Cardano Ecosystem

The combination of IAMX DID technology with the use of a stablecoin will boost the Cardano ecosystem. This will create a positive network effect to grow the user base and the solution’s utility. Currently, no stablecoin is on Cardano, due to the technical and legal challenges to deploy such a system on the blockchain. This project will fill that gap.

High Social Impact

The project aims to create a more accessible world through the blockchain technology, where key population groups can participate through Stablecoin and DID in a newly Digital Public Infrastructure (DPI). 

Robust Blockchain

The Cardano blockchain is robust and offers cheap transaction costs while handling a big traffic. The project leverages these features to provide a cost-effective solution.

[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