SmartDB: UTXO Data Base Abstraction

[GENERAL] Name and surname of main applicant

Diego Towers

[GENERAL] Email address of main applicant

diego@protofire.io

Additional applicants

diego@protofire.io

manuel.padilla@protofire.io

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

6

[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.” .

No dependencies.

[GENERAL] Will your project’s output/s 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.”

Project will be fully open source.

[METADATA] Category of Proposal

Node

[IMPACT] Please describe your proposed solution.

Introduction:

As decentralized applications (DApps) become more prevalent, the necessity for effective information management escalates. Conventional applications typically utilize relational databases, which contain multiple tables with records. These records are interconnected through identifiers, facilitating complex queries encompassing multiple tables. Similar to traditional applications, DApps also need information management to handle the states and transactions of their services.

Conceptual Framework:

In the context of Cardano, information is stored on the blockchain through datums in UTXOs (Unspent Transaction Outputs). The Cardano network utilizes a UTXO Ledger to manage its state, which differs from the Account Ledger used by Bitcoin and Ethereum. The UTXO Ledger comprises a list of inputs, each harboring a balance and a datum, and is intrinsically tied to an address. The datum acts as a repository for the application-specific information.

For our solution, we propose a database that bridges the gap between information on the blockchain and that displayed on the user interface, ensuring seamless synchronization between both sources. The blockchain data will act as the authoritative source, resolving any inconsistencies.

Analogy:

In the proposed database, each datum in a UTXO is analogous to a record in a relational database. This analogy posits that:

• datum = record

Additionally, each contract in a DApp can be considered equivalent to a datum type, which correlates to a table in our database. This draws another equivalence:

• contract = datum type = table

This structure allows the decentralized application to maintain a sophisticated state with various tables, each containing multiple records.

Concurrency Management:

The proposed database incorporates features to manage concurrency. As transactions consume UTXOs and generate new ones, the database must monitor UTXOs involved in ongoing transactions. By marking UTXOs that are being utilized for transactions that are either being constructed or awaiting network validation, we minimize the risk of conflict arising from multiple transactions attempting to use the same UTXO.

Query Optimization:

The database will also act as a cache, optimizing resource usage and mitigating redundant API queries, especially when the application server relies on external services like Blockfrost for Cardano network data. This not only enhances performance but also curtails the costs associated with API calls.

Indexing and Synchronization:

The synchronization of the database is vital to ensuring that the data is up-to-date with the blockchain. Various methodologies, including the utilization of webhooks or periodic backend checks, can be employed to ascertain that the database reflects the latest state of the contract addresses. This process, termed network indexing, can be executed using various sources, including Blockfrost, direct node queries, or other Cardano-related data services.

Data Processing:

To streamline the processing, conversion, and storage of network information in the database, a JSON configuration file will be employed. This file will dictate the contract addresses, corresponding database tables, and data structure, thus governing the connection between the records in the tables and the blockchain data.

API Access and Portability:

An integral component of this solution is API access. The database will be accessible from both the frontend and backend through an API. This facilitates not only portability but also scalability, as the data and smart contracts can be accessed from anywhere, not confined to the initial deployment portal. This architecture enables the development of versatile applications with diverse access points.

Conclusion:

This proposed solution aims to provide a robust, efficient, and scalable database system for decentralized applications on the Cardano blockchain. By bridging the gap between the blockchain data and user interfaces, optimizing queries, and ensuring synchronization, this database presents an innovative and formal solution crucial for the burgeoning DApp ecosystem. Moreover, the API access enhances the portability and versatility of applications built on this platform

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

Addressing the Challenge and Benefits to Cardano Ecosystem:

1. Community Contribution and Knowledge Sharing: By developing this solution as an open-source project, it aligns with OSDE's challenge of sharing efforts with the community. Our project will provide documentation, examples, and the source code, enabling other developers to understand, adopt, or contribute to the project. This promotes an environment of collaboration and shared knowledge, which is fundamental to the growth of the Cardano ecosystem.
2. Improved Efficiency and Resource Optimization: The proposed database will optimize queries made to the Cardano network, which is particularly beneficial for developers with limited resources. By functioning as a cache, the database prevents repetitive API queries, thus minimizing costs and improving performance. This efficiency is likely to attract more developers to build on Cardano.
3. Enhanced Concurrency Control: Our solution will provide mechanisms to handle the concurrency of transactions effectively. By marking UTXOs that are being used in ongoing transactions, it ensures that the state of the database remains consistent and reliable. This is crucial for the robustness of applications built on Cardano.
4. Scalability and Accessibility: The database will be accessible through an API, allowing both the frontend and backend to interact with it. This opens the door for scalability as the data can be accessed from anywhere, not just from the portal where it is deployed. This is crucial for the development of distributed applications on Cardano and promotes interoperability.

Impact on Cardano Ecosystem:

1. Increase adoption of Cardano Technology: The database solution we are proposing is designed to streamline and simplify the interaction between decentralized applications and the Cardano blockchain. By providing an efficient and user-friendly way to manage information, our project lowers the barrier to entry for developers who might be new to the Cardano ecosystem. As the usability of building and maintaining DApps on Cardano improves, it’s expected that more developers and enterprises will be enticed to adopt Cardano for their blockchain needs. Furthermore, as our project is open-source, it will continually evolve with contributions from the community, making it an increasingly attractive and robust solution that encourages the wider adoption of Cardano technology.
2. Enabling More Complex DApps: The ability to effectively manage information on Cardano through our proposed database will enable developers to create more complex and efficient decentralized applications. This is likely to lead to an increase in the number of DApps built on Cardano, bringing more transactions and users to the ecosystem.
3. Enhanced Learning and Adoption through Documentation: Comprehensive documentation and examples provided as part of the project will act as learning resources for developers. Well-documented projects are easier to understand and adopt, which contributes to the reputation and credibility of the Cardano community.
4. Quantifying Impact: In the short term, we expect our project to benefit at least a dozen developers who will utilize our database solution for their DApps on Cardano. As the project matures and as more developers contribute to the open-source codebase, we anticipate that within a year or two, it could become a widely adopted standard for information management in DApps on Cardano.

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

1. Adoption Rate: Measure the number of decentralized applications (DApps) on the Cardano blockchain that successfully integrate and utilize the proposed solution. This metric demonstrates the level of adoption and acceptance of the solution within the Cardano ecosystem.
2. Developer Engagement: Monitor the level of engagement from developers within the Cardano community. This can include factors such as the number of developers contributing to the project, active participation in developer forums, and the creation of related tools or libraries. This metric reflects the interest and involvement of developers in leveraging the solution.
3. Cost Savings: Evaluate the cost savings achieved by DApp developers and operators through the utilization of the proposed solution. Compare the expenses associated with traditional methods of data management against the reduced costs facilitated by the solution. This metric showcases the economic benefits of adopting the solution.
4. User Feedback: Gather qualitative feedback from DApp developers and users regarding their experience with the solution. This can be done through surveys, interviews, or community feedback channels. User opinions provide insights into user satisfaction, ease of integration, improved user experiences, and any additional benefits perceived by the users.

In the short term, the innovation of the project can enhance Cardano's productivity by providing DApp developers with a more efficient and streamlined data management solution. It reduces the complexities and overhead associated with managing data on the blockchain, enabling developers to focus more on application logic and development, thus increasing productivity.

In the long term, the project has the potential to drive Cardano's growth in several ways. By offering a robust and user-friendly data management solution, it can attract more developers to build DApps on Cardano. This increased developer activity can result in a broader range of applications being developed, ultimately attracting more users and driving adoption. Moreover, the scalability and efficiency of the solution can position Cardano as a competitive blockchain platform for decentralized applications, further contributing to its long-term growth and recognition.

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

To effectively share the outputs and results of the project, we have planned the following strategies:

1. GitHub Repository: We will create a dedicated GitHub repository to share all the code, documentation and resources developed as part of the project. This repository will serve as a centralized hub where developers can access and contribute to the project's outputs.
2. Documentation and Reports: We will create comprehensive documentation and reports that outline the project's objectives, methodologies, findings, and outcome
3. Project Catalyst: We will submit regular updates and progress reports to Project Catalyst, sharing the milestones achieved, impact metrics, and future plans.
4. Community Engagement: We will actively engage with the Cardano community and other blockchain-related communities through online forums, social media platforms, and developer meetup
5. Collaboration with Partners: We will seek partnerships and collaborations with blockchain companies, organizations, and academic institution

Regarding further research and development activities, we expect the results generated from the project to serve as a foundation for future advancements. The insights gained, lessons learned, and innovations developed during the project will guide our future research endeavors. We will explore opportunities to build upon the project's outcomes, refine the solution, and address any limitations or areas for improvement.

Additionally, the outputs and results of the project will inform and guide our development of additional tools, libraries, or frameworks that can complement the Smart DB: UTxO Abstraction Layer. These research and development activities will contribute to the ongoing evolution and enhancement of the project, ensuring its continued relevance and impact in the blockchain and decentralized application domain.

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

Our capability to deliver the project with high levels of trust and accountability stems from the experience, expertise, and organizational processes we have in place. Here's why we are well-suited to execute this project:

1. Protofire's Track Record: Protofire, which is spearheading this project, has an established reputation in building decentralized infrastructure, protocols, applications, and developer platforms. Its specialized skills in enhancing developer adoption and network usage are crucial for the success of this project.
2. Skilled Team: Our team is composed of professionals with diverse backgrounds, including blockchain development, smart contracts, security, data analytics, and project management. This ensures a multidisciplinary approach to problem-solving and guarantees the employment of best practices in execution.
3. Previous Contributions: Protofire has a history of making meaningful contributions to the blockchain community. This indicates not only technical capabilities but also a commitment to the advancement of decentralized technologies.
4. Transparent Communication: We will maintain open lines of communication with the community through regular updates and engaging in forums. This transparency is essential for building trust.
5. Robust Financial Management: We will implement strict financial controls and regular auditing to ensure that funds are used efficiently and for the intended purpose. This includes having a clear budget allocation, milestones-based disbursements, and financial reporting.
6. Scalable Solutions: Protofire’s experience ensures that the solutions we develop are scalable and able to adapt to the evolving needs of the Cardano ecosystem. This speaks to our capability to deliver not just a project, but a sustainable and evolving solution.
7. Feedback and Iterative Development: We will incorporate feedback from the community and users, and employ an iterative development process. This ensures that the project adapts and improves based on real-world input and requirements.

Our accumulated experience, transparency, and commitment to best practices and community engagement make us not only capable but trustworthy stewards of this project.

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

The main goals of the project are as follows:

1. Develop and Implement the Smart DB: UTxO Abstraction Layer: The primary objective is to create a robust and efficient database solution that bridges the gap between blockchain data on the Cardano network and user interface
2. Enhance User Experience: The goal is to improve the user experience for both DApp developers and end-user
3. Facilitate Cost Reduction: The project seeks to minimize costs associated with DApp development and operations by optimizing resource usage, reducing redundant API queries, and providing efficient data storage and retrieval mechanism

To validate the feasibility of our approach, we will employ the following strategies:

1. Prototype Development: We will develop a functional prototype of the Smart DB to demonstrate its core features and functionalitie
2. Testing and Evaluation: We will conduct rigorous testing and evaluation of the Smart DB
3. Iterative Development and Feedback Loop: We will adopt an iterative development approach, continuously refining and enhancing the solution based on feedback received from users, developers, and the Cardano communit

[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: Project Setup, Database Design, and Initial Integration

Key Activities:

• Define project requirements and objectives.
• Set up the development environment and install necessary tools and frameworks.
• Design the database schema and identify tables, relationships, and fields.
• Define the JSON configuration file for contract addresses and data structures.
• Develop manual synchronization mechanisms to update the database based on contract address utxos
• Integrate API services like Blockfrost to fetch Cardano network information (basic integration).

Timeline: 4 weeks

Success Criteria: Documentation on project requirements and objectives completed. Development environment set up. Database schema designed. JSON configuration file defined. Initial synchronization mechanisms and API integration established.

Cost Estimate: 15,867 ADA

Milestone 2: REST API Development

Key Activities:

• Design the REST API endpoints for accessing and reading the database.
• Implement the necessary routes, controllers, and middleware for the REST API.
• Integrate authentication and authorization mechanisms for secure access.
• Test and validate the functionality of the REST API.

Timeline: 4 weeks

Success Criteria: REST API endpoints designed and implemented. Authentication and authorization mechanisms integrated. REST API functionality successfully tested and validated.

Cost Estimate: 18,000 ADA

Milestone 3: Database Integration

Key Activities:

• Enhance synchronization with automatic mechanisms. Implement logic for tracking contract address changes and triggering database updates.
• Expand the integration with API services to include new features.
• Develop a toolkit for database schema creation and TypeScript types/classes generation.

Timeline: 4 weeks

Success Criteria: Enhanced database synchronization mechanisms implemented. Expanded API integration. Toolkit for database schema creation and TypeScript generation created.

Cost Estimate: 17,733 ADA

Milestone 4: Transaction Processing and Concurrency

Key Activities:

• Implement transaction creation logic considering the UTxO model and datum handling.
• Develop mechanisms to handle in-use UTxOs for preventing concurrency issues.
• Design and implement read-only access to UTxOs for other users.
• Test and validate transaction processing and concurrency features.

Timeline: 4 weeks

Success Criteria: Transaction creation logic implemented. Concurrency handling mechanisms in place. Read-only access to UTxOs implemented. Transaction processing and concurrency features successfully tested and validated.

Cost Estimate: 17,733 ADA

Milestone 5: Query Optimization and Cache Implementation

Key Activities:

• Implement query optimization techniques, for instance, get only specific fields from the tables.
• Develop datums\redeemers caching mechanisms in the database for storing frequently accessed data.
• Test and optimize the performance of query optimization and caching features.

Timeline: 2 weeks

Success Criteria: Query optimization techniques implemented. Caching mechanisms integrated. Query optimization and caching features tested and optimized for improved performance.

Cost Estimate: 18,400 ADA

Milestone 6: Testing, Refinement, Examples, and Documentation

Key Activities:

• Perform unit testing and integration testing to ensure functionality and reliability.
• Refine and optimize the codebase, addressing any bugs or performance issues.
• Create complete examples showcasing smart contract, frontend, and backend integrations.
• Generate comprehensive documentation with setup instructions and usage guidelines.

Timeline: 3 weeks

Success Criteria: Testing completed with successful unit and integration tests. Codebase refined and optimized. Examples demonstrating integrations created. Comprehensive documentation prepared.

Cost Estimate: 21,333 ADA

Total duration: 22 weeks

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

Milestone 1: Project Setup, Database Design, and Initial Integration

Deliverables:

• Documentation on project requirements and objectives
• Development environment set up
• Database schema design
• JSON configuration file defining contract addresses and data structures
• Initial synchronization mechanisms and API integration

Intended Outcomes:

• Clear understanding of project requirements and objectives
• Development environment ready for further development
• Well-designed database schema and configuration file
• Basic synchronization mechanisms and API integration established

Progress Measurement:

• Completion of project requirements and objectives documentation
• Successful setup of the development environment
• Finalized database schema design and JSON configuration file
• Functional synchronization mechanisms and API integration

Milestone 2: REST API Development

Deliverables:

• Designed REST API endpoints for accessing and reading the database
• Implemented routes, controllers, and middleware for the REST API
• Integrated authentication and authorization mechanisms
• Tested and validated functionality of the REST API

Intended Outcomes:

• Well-defined and functional REST API endpoints for database access
• Secure authentication and authorization mechanisms in place
• Successfully tested and validated REST API functionality

Progress Measurement:

• Completed REST API endpoint design
• Implemented and functional routes, controllers, and middleware
• Integration of authentication and authorization mechanisms
• Successful testing and validation of the REST API functionality

Milestone 3: Advanced Database Integration and Toolkit Development

Deliverables:

• Enhanced synchronization wut automatic mechanisms for efficient updates based on contract address changes
• Expanded integration with API services for new features
• Developed a toolkit for database schema creation and TypeScript generation

Intended Outcomes:

• Improved synchronization mechanisms for efficient updates
• Advanced features integrated with API services
• Toolkit for database schema creation and TypeScript generation

Progress Measurement:

• Enhanced synchronization mechanisms implemented
• Successful integration of advanced features with API services
• Completed toolkit for database schema creation and TypeScript generation

Milestone 4: Transaction Processing and Concurrency

Deliverables:

• Implemented transaction creation logic considering the UTxO model and datum handling
• Developed mechanisms to handle in-use UTxOs for preventing concurrency issues
• Designed and implemented read-only access to UTxOs for other users
• Tested and validated transaction processing and concurrency features

Intended Outcomes:

• Functional transaction creation logic based on the UTxO model
• Concurrency handling mechanisms to prevent issues with in-use UTxOs
• Read-only access implementation for UTxOs by other users
• Successful testing and validation of transaction processing and concurrency features

Progress Measurement:

• Completed implementation of transaction creation logic
• Functional mechanisms for handling concurrency with UTxOs
• Successfully implemented read-only access to UTxOs
• Tested and validated transaction processing and concurrency features

Milestone 5: Query Optimization and Cache Implementation

Deliverables:

• Implemented query optimization techniques
• Developed caching mechanisms in the database for storing frequently accessed data
• Tested and optimized the performance of query optimization and caching features

Intended Outcomes:

• Improved query performance through optimization techniques
• Efficient caching mechanisms for frequently accessed data
• Optimized query optimization and caching features for improved performance

Progress Measurement:

• Successful implementation of query optimization techniques
• Functional caching mechanisms integrated into the database
• Tested and optimized query optimization and caching features for improved performance

Milestone 6: Testing, Refinement, Examples, and Documentation

Deliverables:

• Unit testing and integration testing to ensure functionality and reliability
• Refined and optimized codebase, addressing bugs and performance issues
• Complete examples showcasing smart contract, frontend, and backend integrations
• Comprehensive documentation with setup instructions and usage guidelines

Intended Outcomes:

• Reliable and functional codebase through thorough testing
• Optimized codebase with resolved bugs and improved performance
• Demonstrative examples of integrations between smart contract, frontend, and backend
• Comprehensive documentation providing clear setup instructions and usage guidelines

Progress Measurement:

• Completion of unit testing and integration testing with successful outcomes
• Refined and optimized codebase based on resolved bugs and improved performance
• Creation of complete examples showcasing integrations
• Comprehensive documentation prepared with clear setup instructions and usage guidelines

To track the project's progress, you will measure the completion of the deliverables mentioned above for each milestone. The successful completion and functionality of the intended outcomes will be the key indicators of progress. Additionally, testing and validation processes will provide insights into the reliability and performance of the developed features. Regular milestones review and status updates will help track the overall project progress and ensure alignment with the planned timeline.

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

Roles within the team:

• Project Manager (67 ADA/h): Responsible for coordinating the project, setting objectives, and managing resources.
• Technical Architect (80 ADA/h): Designs the development environment, defines project requirements, and oversees the database design.
• Full Stack / Cardano Developer (93 ADA/h): Designs and implements the database schema and synchronization mechanisms. Designs and implements the REST API service. Responsible for frontend and backend integrations in the examples.
• QA Engineer (67 ADA/h): Prepare and execute Unit and property Testing. Responsible for testing and validating the transaction processing and concurrency features.
• Documentation Specialist (67 ADA/h): Creates documentation on project requirements, objectives, and database design.

Budget by milestone

Milestone 1: Project Setup, Database Design, and Initial Integration

• Project Manager: 30h * 67 ADA = 2,000 ADA
• Technical Architect: 80h * 80 ADA = 6,400 ADA
• Full Stack / Cardano Developer: 80h * 93 ADA = 7,467 ADA

Milestone 2: REST API Development

• Project Manager: 20h * 67 ADA = 1,333 ADA
• Technical Architect: 60h * 80 ADA = 4,800 ADA
• Full Stack / Cardano Developer: 120h * 93 ADA = 11,200 ADA
• QA Engineer: 30h * 67 ADA = 2,000 ADA

Milestone 3: Advanced Database Integration and Toolkit Development

• Project Manager: 20h * 67 ADA = 1,333 ADA
• Technical Architect: 40h * 80 ADA = 3,200 ADA
• Full Stack / Cardano Developer: 120h * 93 ADA = 11,200 ADA
• QA Engineer: 30h * 67 ADA = 2,000 ADA

Milestone 4: Transaction Processing and Concurrency

• Project Manager: 20h * 67 ADA = 1,333 ADA
• Technical Architect: 40h * 80 ADA = 3,200 ADA
• Full Stack / Cardano Developer: 120h * 93 ADA = 11,200 ADA
• QA Engineer: 30h * 67 ADA = 2,000 ADA

Milestone 5: Query Optimization and Cache Implementation

• Project Manager: 20h * 67 ADA = 1,333 ADA
• Technical Architect: 40h * 80 ADA = 3,200 ADA
• Full Stack / Cardano Developer: 120h * 93 ADA = 11,200 ADA
• QA Engineer: 40h * 67 ADA = 2,667 ADA

Milestone 6: Testing, Refinement, Examples, and Documentation

• Project Manager: 20h * 67 ADA = 1,333 ADA
• Technical Architect: 60h * 80 ADA = 4,800 ADA
• Full Stack / Cardano Developer: 120h * 93 ADA = 11,200 ADA
• QA Engineer: 60h * 67 ADA = 4,000 ADA

Additional roles for all milestones:

• Document Specialist: 80h * 67 ADA = 5,333 ADA

Total: 114,400 ADA

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

We, at Protofire, are thrilled to submit our proposal for the Catalyst Grant Program, highlighting our strong determination to enter in Cardano ecosystem as +80 Engineer Company. 

In this proposal, we will outline our approach, emphasizing the importance of quality, adherence to timelines and milestone base projects, and our proven track record in diverse markets.

While profitability is undoubtedly a critical aspect of any project, we recognize that onboarding Cardano requires a long-term vision that extends beyond immediate financial gains. We understand that investing in this new technology may initially result in costs that surpass our break-even point.

However, we firmly believe that by strategically positioning ourselves within this ecosystem, we will eventually become a main character that can drive and produce great value for everyone.

So for Cardano, this proposal represents a world-class team working on an open-source tool for half the cost. It's definitely a good deal!

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

1. Innovation and Scalability: The project focuses on enhancing the capabilities of smart contract interactions with the Cardano blockchain. By offering efficient and scalable solutions, the project can foster innovation, making it attractive for developers and enterprises to build on the Cardano network.
2. Improved Transaction Processing: Handling transactions with high efficiency and minimizing concurrency issues directly contribute to an improved user experience. This can help in attracting more users and transactions to the Cardano network, which in turn may increase the demand for ADA and contribute to network security.
3. Knowledge Sharing and Documentation: With comprehensive documentation and examples, the project acts as a knowledge base for developers who want to integrate with the Cardano blockchain. This education can accelerate the adoption of Cardano technology and attract more talent to the ecosystem.
4. Optimized Performance: Query optimization and caching features contribute to the robustness and performance of the applications built on Cardano. This can translate to cost savings for developers and businesses in terms of reduced operational costs.
5. Facilitating Integrations: By providing a secure and efficient REST API, the project can become a catalyst for integrations with various applications and services, driving more traffic and usage to the Cardano network.

[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