Certificates for Custom Jewellery

[GENERAL] Name and surname of main applicant

Dmitry Shibaev

[GENERAL] Email address of main applicant

dynamicstrategiesio@gmail.com

Additional applicants

Elcio Chiquinato

Vlad Mikirtumov

[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.” .

The project does not have 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.”

The project will be fully open source

[METADATA] Category of Proposal

dApp

[METADATA] SDG rating

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

SDG Subgoals

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

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.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

[IMPACT] Please describe your proposed solution.

In the traditional model of designing and selling Jewelry, the designers and jewellery manufacturers create a collection; which they then launch and market at different events around the world, such as the JCK Las Vegas https://lasvegas.jckonline.com/, the Hong Kong Jewellery & Gem Fair https://jgw.exhibitions.jewellerynet.com/ or the Dubai Jewelry Show https://www.jgtdubaijewelleryshow.com/ 

After the launch, the Jewelry pieces are sold online or at the retail stores of the designers. The design is fixed during production, and the uniqueness, or the number of units produced, controls rarity.

The traditional model does not allow for customization of jewellery pieces besides engravings at the point of sale.

On the other hand, consumers are demanding more customization of their products. Think of custom car packages and paint jobs that can be selected when purchasing a new car. The trends for customization are expected to continue. Personalization is an essential marketing tactic that has been used for years. It allows marketers to understand their customers and better target them with ads and messaging. However, personalization will expand into longer customer journeys as technology becomes more advanced and data sets grow larger.

https://ninetailed.io/blog/personalization-trends-to-watch-for-in-2022/ 

Providing a complementary NFT with the details of the custom-designed Jewelry piece creates a sentimental connection to the uniqueness of the design. In addition, it has the practical aspect of clarifying what has gone into the Jewelry piece.

Several companies have created integrated production lines between a webshop and the manufacturing facility that makes individual jewellery pieces. However, this integration is still unique in that the company can create bespoke Jewelry pieces from a blueprint of different traits. Similar to how artists generate NFT collections on the web.

A couple of examples where companies offer a bespoke jewellery design service:

https://chimeradesign.jewelershowcase.com/band-builder 

https://www.jweel.com/html/tools.html 

On these platforms, once the customer is happy with the design of the Jewelry piece, they submit their order and go to the checkout area.

Upon checkout and payment, the webshop sends the 3d model to the production line, and the designer gets to work putting together the unique piece by adding the selected traits.

A few days later, a courier delivers the unique Jewelry piece to the customer.

Solution

We will integrate an NFT minter into the Jewellery production process. As the client designs their unique Jewelry piece, they will have the information if the piece is truly unique and the number of other pieces with similar traits. This might lead them to pick different designs that are more or less unique, depending on their preference.

During checkout, the customer will receive an NFT with a picture of the 3d model and metadata with the traits of their unique Jewelry piece. 

This will improve the customer journey by:

• Giving the customer clear information on how rare their piece is
• The customer will receive an NFT with the 3d model summary of the traits that they can then show their friends and loved ones
• Create a secondary market for the Jewelry market on the blockchain

Adding NFTS to physical jewellery pieces will bring new users to the Cardano ecosystem as every customer will become a user of the Cardano Blockchain.

During the checkout, the customer will have the option to provide the address of their Cardano wallet, where we will send the NFT certificate. If the customer doesn’t have a Cardano wallet, we will create one for them and send the NFT there. In addition, the customer will receive a 15-word mnemonic phrase for their new wallet, which they can use for other things in the Cardano ecosystem.

The transaction cost for minting the NFT will be borne by the webshop, so the NFT for the customer will be complimentary (free). The customer will receive an NFT in their wallet and a small amount of ADA to cover the future cost of sending the NFT should they want to transfer it to someone else.

We are in talks with a company in Portugal that has built a production line capable of linking their web app to their manufacturing facility. This proposal is to build the Cardano infrastructure to plug into the production line and mint the NFTs linked to the physical jewellery pieces.

We will also investigate the possibility of uploading the 3d model CAD file into the NFT so the 3d model can be used in the manufacturing process.

The Jewelry market has faired well during the most recent economic downturn. Despite serious economic disruption at the turn of 2020, the global gems and jewellery market is forecast to grow at 5.5% CAGR by 2025*. Though shy of pre-pandemic projections at 8% CAGR** this outlook represents a significant hike from approximately 230 billion U.S. dollars in 2020 to roughly 292 billion dollars by 2025. Source: https://www.mordorintelligence.com/industry-reports/gems-and-jewelry-market

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

The project addresses the challenge setting by creating a novel and viable application of NFTs to the real world and onboarding non-crypto users to the Cardano Ecosystem.

It will create NFTs for real-world assets to which people attribute economic and emotional value, Jewelry.

It will help onboard new users into the Cardano Ecosystem as every person who buys this particular Jewellery will get an NFT on their existing Cardano wallet, or if they don’t have one, then a new Cardano Wallet will be created for them and a mnemonic phrase provided which they can use elsewhere in their lives. So every new customer automatically becomes a new Cardano user.

It solves a real-world problem of tracking and communicating uniqueness in Jewellery pieces, which is also one of the prerequisites for a transparent secondary market.

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

We will consider the project a success if, in the end, we deliver a working solution that shows the clients the uniqueness of the traits as they are customizing their jewellery design, and after checking out, they receive a professionally designed NFT certificate in PDF format with the image of the 3d model used and the traits in that were used to build it.

The NFT will be delivered to the client’s existing Cardano wallet, or a new wallet will be created for the client, and the NFT deposited there. 

The client will also be given a link to where they can view the NFT as it sits on the blockchain and other Jewelry items in the same collection (same PolicyID)

A successful project will bring new users to the Cardano ecosystem as every client will have a Cardano wallet.

It will leverage existing community tools such as the javascript wrapper for cardano-cli and cardano-wallet services. 

And it will solve an actual use case for non-crypto users - the purchase of the NFT will be included in the Jewelry sale price, for which they will pay in crypto or fiat depending on the onramp of the webshop. It will be integrated into a standard web shopping experience.

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

A report with the following KPIs will be produced at each month's end.

Build KPIs

• Number of weekly commits
• Total lines of code for the backend and the front end

Delivery KPIs

• Server with Cardano node and Cardano services running on the Testnet
• The cardano-cli and cardano-wallet javascript wrapper libraries are installed
• The backend service to upload images to IFPS is working
• The backend service accepts images of the 3d model and traits of the designed jewellery, creates metadata from it, and mints an NFT
• The new wallet can be generated for the client, and detail sent to the client
• NFT certificate is designed and can be generated
• The client checkout workflow is tested and released to production.

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

The technology is well understood, and several projects on Cardano use similar technology in the back end to mint and show the images and metadata of NFTs. Several projects have also linked the minting of NFTs to a fiat onramp which is the closest to checkout at a webshop. An example project that has successfully implemented a more sophisticated version of this https://www.nmkr.io/ 

The company Dynamic Strategies that will be delivering the project has experience in delivering projects on Catalyst, having completed 2 out of 3 previous projects, and the 3rd is progressing at a good pace. The company also has experience with the Cardano services stack and has released open-source tools (more on this in the relevant experience section further below)

A dedicated design studio will design the layout of the NFT Certificates.

The project delivery also depends on a functioning user interface where the client designs the bespoke jewellery pieces and an operational checkout process. We are in talks with a company in Portugal that is setting up its manufacturing and will offer a webshop for clients to design their jewellery. If there are delays with the delivery of the webshop and Jewelry design features, then delivery of the project might get delayed. Mitigating action: we will aim to plan the delivery dates with the Jewelry company as closely as possible. However, should there be uncertainties with the layout or technical stack, we will remain flexible and delay our project delivery. Should the delays extend beyond reasonable, we will create a sample front end and pitch the solution to other manufacturers.

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

The main goal of the project is to build the full stack infrastructure for producers of Custom Jewellery pieces to offer their customers the ability to mint a digital copy of their creation and consult the rarity against the rest of the collection.

During the execution of the project, we will compare third-party services that already exist on Cardano and validate if one of these services can be integrated rather than a new functionality built out. The third-party services that we have identified and will trial:

• Minting NFT certificates and creating new Cardano wallet: https://www.nmkr.io/ 
• Cardano chain indexer and graphql / API survive: https://www.koios.rest/ and https://gomaestro.org/ 

The deliverable is well understood and we do not foresee risks to the content of the deliverable

[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.

The project will have four milestones.

Milestone 1: Backend NFT minting service

Activities:

We will build the backend service with NodeJs and will connect to the Cardano services with the help of community-built wrappers:

• It will connect to cardano-cli through a wapper such as https://github.com/shareslake/cardanocli-js 
• It will connect to cardano-wallet service through a wrapper such as https://github.com/tango-crypto/cardano-wallet-js

It will use the cardano-cli to mint new NFTs and it will use the cardano-wallet service to create new wallets for customers.

The cardano-cli and cardano-wallet both depend on a running cardano-node service that syncs a local copy of the cardano database. Therefore cardano-node will also be deployed.

The cardano-cli has a set of commands to mint a token (NFT) and add metadata. The Metadata will follow the CIP25 standard with the label 721; the standard imposes the minimum amount of information such as the PolicyID, Asse Name, Image URL, media type, and a description. Beyond this minimum amount of data, it allows for setting the traits of the Jewelry in a freeform JSON format

https://cips.cardano.org/cips/cip25/

We will create a backend service to upload the images of 3d models and the 3d CAD files of Jewelry pieces to the IPFS using the Pinata IPFS gateway https://www.pinata.cloud/

We will also research if using a third-party NFT minting service is feasible, such as https://www.nmkr.io/, and what its advantages are over a bespoke minting service described above. For a large number of mints, the jewellery produced might favour having the extra flexibility in defining the metadata and the ability to embed a 3d model into the mint.

Expected time to completion: 1 month

Resources: 

• One developer 20h per week for 4 weeks
• One designer 10h per week for 4 weeks
• One project manager 2h per week for 4 weeks

Milestone 2: Webshop Connector

Activities:

The NodeJs implementation of the backend will run an Express Server to receive connections from the front end and interact with each of the backend services described in section 1 above.

Additionally, the cardano-graphql service will be deployed to monitor the blockchain and confirm when the minting transaction of NFTs gets completed. We will research the possibility of using a third-party blockchain indexer such as https://www.koios.rest/ or https://www.gomaestro.org/ 

The cardano-graphql will also be used to read all the NFTs that were minted within the same Jewelry collection (PolicyID) and tell the client how unique their current design is

As the client is experimenting with the design of their Jewelry piece the information on the selected traits will be sent to the backend, which will query the blockchain for NFTs within the same PolicyID that have at least one of these traits and send it back to the client the other variations that have already been sold. The client can use this information to inform his decision on if they want something that no one has yet, or otherwise.

When the client is happy with the design, they will use the checkout function of an existing webshop to pay for the Jewelry piece. The webshop will then POST to the backend service an image of the final 3d model that the client chose and the traits of that model.

The backend service will:

• upload the image of the Jewelry 3d model onto IPFS,
• Generate the CIP25 compatible metadata standard with information on the traits
• Build and send a minting transaction with the IPFS URL of the image and the metadata

Expected time to completion: 1 month

Resources: 

• One developer 20h per week for 4 weeks
• One designer 10h per week for 4 weeks
• One project manager 2h per week for 4 weeks

Milestone 3: New Cardano Wallet generator

Activities:

The newly minted NFTs of the Jewelry piece will be sent to the client’s existing Cardano wallet if the client has a Cardano wallet. If the client doesn’t have a Cardano wallet, the backend service will create a new one.

The backend service will generate the wallet mnemonic in the front end with the help of the BIP39 library. The wallet will then be synced using the cardano-wallet backend service. The client will also receive a wallet address to which the NFT will be sent.

Expected time to completion: 1 month

Resources: 

• One developer 20h per week for 4 weeks
• One designer 10h per week for 4 weeks
• One project manager 2h per week for 4 weeks

Milestone 4: Front end with NFT certificate

Activities:

After the client completes the checkout and pays for the Jewelry piece, the webshop will present them with an NFT certificate in a pdf format with the following information:

• Image of the 3d model
• Selected traits
• PolicyID and Asset Name of the NFT
• Wallet Address holding the NFT when the certificate was issued

Also, optionally the client might choose to have their mnemonic phrase printed on the NFT certificate and instructions on how to open a compatible wallet.

Our partner design agency https://www.davidegolias.com/ will design the layout and branding of the NFT certificate

A separate one-page application will be built and made available to clients where they will be able to check their NFTs by supplying the PolicyID and Asset Name of their NFT. In addition, the page will show them the image of a 3d model of their Jewelry piece and the metadata with the traits.

The one-page application will be served by cardano-graphql backend service or a third-party indexer, which we will evaluate when delivering the 2nd milestone

Go live, monitor performance in production and fix bugs.

Expected time to completion: 2 months

Resources: 

• One developer 20h per week for 4 weeks
• One designer 10h per week for 4 weeks
• One project manager 2h per week for 4 weeks

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

Milestone 1: Backend NFT minting service

Deliverables: Contract a web server. Set up the backend infrastructure cardano-node, cardano-graphql, cardano-wallet, cardano-db-sync. Configure the community wrapper for cardano-cli and cardano-wallet. Develop the backend service that receives images and uploads them to the IPFS using the Penata IPFS gateway

Outputs: An operational minting service for Custom Jewellery pieces

Intended Outcomes: Set up the server environment and create the NFT minter using the available community tooling (cardano-cli js and cardano-wallet-js)

Milestone 2: Webshop Connector

Deliverables: A NodeJs and Express server with the API to receive connections from front end and interact with cardano-cli and cardano-walllet. An API that reads the metadata of PolicyID from the blockchain and relays back to the webshop the current number of traits. Checkout process in the webshop to send the image of the 3d model and the traits info to the backend service

Outputs: A functional connector to the webshop checkout process

Intended Outcomes: A front-end of a web shop can connect to the back-end minting service

Milestone 3: New Cardano Wallet generator

Deliverables: A backend service to mint the NFTs using the cardano-cli wrapper. communication between front and backend to generate new wallets. A pdf printer that takes the design of the NFT certificate and fills in with NFT metadata and image

Outputs: A functional new wallet generator and a well designer paper wallet.

Intended Outcomes: Mint the NFT send to the client’s wallet or create a new wallet if the client chooses so.

Milestone 4: Front end with NFT certificate and go live

Deliverables: A front-end that connects to the backend services, mints an NFT according to traits and shows the existing pieces in a collection and their traits. Go live, monitor performance in production and fix bugs.

Outputs: A front-end in a modern web framework such as NextJS that connects to the back-end

Intended Outcomes: A functional front-end that lets users create an NFT certificate for their Cutsomer Jewellery piece and check rarity against all the other pieces in a collection

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

Milestone 1: Backend NFT minting service

• 1 Developer for 20h per week for 4 weeks @ $50/h
• 1 Designer for 10h per week for 4 weeks @ $30/h
• 1 Project Manager 2h per week for 4 weeks @ $30/h

Total $5,440

Milestone 2: Webshop Connector

• 1 Developer for 20h per week for 4 weeks @ $50/h
• 1 Designer for 10h per week for 4 weeks @ $30/h
• 1 Project Manager 2h per week for 4 weeks @ $30/h

Total $5,440

Milestone 3: New Cardano Wallet generator

• 1 Developer for 20h per week for 4 weeks @ $50/h
• 1 Designer for 10h per week for 4 weeks @ $30/h
• 1 Project Manager 2h per week for 4 weeks @ $30/h

Total $5,440

Milestone 4: Front end with NFT certificate and go live

• 1 Developer for 20h per week for 8 weeks @ $50/h
• 1 Designer for 10h per week for 8 weeks @ $30/h
• 1 Project Manager 2h per week for 8 weeks @ $30/h

Total $10,880

Server expenses $15/month x 4 months = $60

TOTAL in USD = 27,200 USD

TOTAL in ADA @ 0.3 = 90,867 ADA

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

The project will onboard new businesses and users into Cardano. Every new use of the platform gets a Cardano wallet that they can use with other Cardano apps

It will create a real-world use case for NFTs on Cardano by attaching them to Custom Jewellery pieces and let buyers collect and compare them against pieces owned by others.

[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