Data Tokenization As A Decentralised Data Storage Mechanism: A Fully Decentralised Wallet Seed Phrase Recovery Manager.

[GENERAL] Name and surname of main applicant

Demilade Mayowa Jaiyeola

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Co-proposers and additional applicants

Jon Bauer

[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] Summarize your solution to the problem (200-character limit including spaces)

The goal is to research and identify effective on-chain data storage and management mechanisms and strategies to uncover a broader range of practical applications for the Cardano blockchain.

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

Yes

[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.”

Our project is dependent on Omni Ark, a Web3 consulting company for the provision of Treasury Management and Project Management Tooling.

[GENERAL] Will your project’s output/s be fully open source?

Yes

[GENERAL] Please provide here more information on the open source status of your project outputs

The project would be available under AGPL for open-source community use.

[METADATA] Horizons

Education

[SOLUTION] Please describe your proposed solution

Unlocking the Potential of Cardano’s Data Storage and Management: A Discovery Approach

The goal of this project is to analyze, identify, and document optimal mechanisms and strategies that leverage Cardano's UTxO datum structure and transaction metadata for data management and storage.

The "Decentralized Seed Phrase Storage and Management" solution serves as a prime use case for research, analysis, and evaluation due to its sensitivity and security requirements.

The rationale is that if these mechanisms can securely store and manage private and sensitive data like seed phrases, they can be effectively applied to any other type of data.

Discovering Ideal Core Data Processing Strategies:

We will strategically explore the fundamental building blocks of data management, exploring data encoding mechanisms, compression algorithms and cryptography, and other core techniques, to fully assess and push the boundaries of what is possible with data storage and management on the Cardano blockchain.

Problem Statement: Why On-chain Tokenization?

Current data storage solutions across various industries, including medicine, science, and entertainment, face significant challenges in security, cost, and scalability, limiting their effectiveness in a decentralized world. Specifically, the management of sensitive information like seed phrases suffers from risks such as data theft and single points of failure. These issues hinder broader blockchain adoption in practical, everyday applications.

Solution Statement:

This project harnesses the power of tokenized data management using UTxO datum structures and transaction metadata to fabricate a secure, user-friendly and fully decentralized Seed Phrase Recovery Manager for Cardano. 

In the this project would serve as a proof-of-concept to illustrate how data can be securely encrypted, stored, managed and retrieved on-chain. By distributing seed phrases through a decentralized storage mechanism, we enhance security and usability, making it nearly impossible for a single entity to compromise the system. This project aims to demonstrate the broader potential of tokenized data storage and management, enabling secure, practical applications across multiple industries while setting a new standard for decentralized data handling.

How it Works:

1. The user submits 23 out of 24 seed words, keeping 1 hidden for extra security.
2. Index of the hidden word and passphrase are provided.
3. The user-provided personal info is hashed and parameterized to create a script address for every user and for UTxO identification.
4. Dapp encrypts 23 words and indexes using AES encryption with the passphrase.
5. Dapp performs data size management techniques on the encrypted data storing it as UTxO Datum on-chain.
6. Other currently undiscovered data security and data management techniques will be analysed and disclosed in proper documentation.

Implementation:

• Parameterized smart contract on Cardano Blockchain using Plutus/Plutarch.
• On-chain logic mainly for storage, with an option to withdraw min ADA if needed.
• Off-chain code using Lucid for AES encryption and UTXO locking.

Recovery:

Users can recover their seed phrases by providing a passphrase along with their personal info which was provided at the point of account creation in that exact order. The Dapp decrypts and provides the 23 words + index, ensuring a safe recovery mechanism.

Security Optimization:

A series of tests and benchmarks between security optimisation techniques are currently being analysed and synthesized to attain the ideal and optimum security workflow architecture against all possible attacks without compromising efficiency, ease of use and decentralisation. some of these techniques include; implementing recursive encryption mechanisms, utilizing Transaction Token Patterns such as On-chain Merkle Trees and "linked lists" UTxOs, compression algorithms, encrypted randomly generated keys for data encryption etc.

Importance Of This Solution:

• Documentation about this project would offer in its code base, templated source code as a resource and as information to developers about how the Cardano blockchain can be utilised as a storage mechanism and to manage data for various use cases in a decentralised fashion.
• Offers a recovery mechanism for lost seed phrases.
• Simplifies information storage for recovery, encouraging users to define passphrases and personal info rather than storing their seed phases directly on their computer, on a piece of paper, or using some other insecure/expensive storage mechanism.
• Enhances security by allowing multiple storage locations without compromising funds.

Target Audience:

All self-custody crypto users, including those from other blockchain networks. Encourages central exchanges to provide enhanced security features for self-custody wallets. Delo

Impact Measurement:

• Source of reference and information for developers to implement specific solution components for various use cases.
• Evaluate impact through community adoption, user feedback, and the increasing number of users utilizing the solution within the blockchain ecosystem at large.

Prototype Access:

Access the prototype on GitHub, which includes a Next.js application with TypeScript and lucid-cardano for off-chain. Plutarch code is available separately. Blockfrost API keys and Nami wallet are required for connection.

Off-Chain Lucid Code:

https://github.com/rchak007/decentralSeedRecover/blob/main/pages/offChain.tsx

On-Chain plutarch Code:

https://github.com/rchak007/decentralSeedRecover/blob/main/pages/onChain.hs

Please see the Pilot Test with Cardano PreProd section here:

https://github.com/rchak007/decentralSeedRecover for testing simple GUI and the test results.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

Generally:

The proposed solution addressed the challenge of seed phrase management whether self-custody or centralized by relying on the benefits of Cardano's eUTXO model to store the seed phrase in a decentralized fashion as well as the use of Smart contracts to verify the validity of the owner of the seed phrases while recovering lost keys.

For Developers:

This project provides developers with a valuable resource: templated source code showcasing the utilization of the Cardano blockchain as a storage mechanism. It empowers developers to efficiently manage small data sets across diverse decentralized use cases.

Expanding the Cardano Ecosystem and Cardano Adoption:

This project is a blockchain-agnostic solution, meaning seed phrases of wallet owners from any other blockchain infrastructure like Ethereum can be stored securely on the Cardano Blockchain, which would automatically onboard users to the Cardano ecosystem.

Promote, Publisize and Advocate Cardano's Versatility:

As there are no solutions out there that currently check all the following: convenience, security, affordability and decentralisation, our solution proves the uniqueness, usefulness and versatility of the Cardano Blockchain. 

More info on our proposed solution: https://github.com/rchak007/decentralSeedRecover

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Project Feasibility Evaluation:

This solution underwent thorough review, evaluation, and approval by the Emurgo Cardano Solution Architect Program in the final project evaluation session, confirming its practicality and security.

Capability Of Team Members:

Our team consists of software engineers and Developers with a diverse set of skills in various fields including Web3 and blockchain development, frontend development and other traditional Web2 development-related skill sets as illustrated in the "Project team and Roles description section".

Project Management:

We would additionally, implement a robust treasury management system to effectively allocate funds for each milestone.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Research, Scaling Planning & Infrastructure Setup (1 month)

Objectives:

• Plan and Initiate an ideal research scheme for effective and optimal on-chain data tokenization.
• Establish the foundational infrastructure including hosting decisions and end-to-end tool stack selection.
• Design UI/UX workflow.
• Define the roadmap for further milestones, and end-to-end DApp Architecture.
• Evaluate and decide on using Blockfrost API or setting up a dedicated Cardano node.
• Explore business models and encryption strategies, including recursive encryption methods.

Deliverables:

• A scaled project architecture with a clear production infrastructural plan.
• A documented decision on hosting and tool stack, including rationale.
• A report on cascaded encryption methodology and its implementation strategy.

On-chain code optimization and Off-chain code safeguarding (3 months)

Objectives:

• Test and benchmark between data security and compression management techniques to attain ideal workflow optimization decisions.
• Develop and refine recursive encryption and other improved, On-chain and off-chain applications, techniques and mechanisms using Plutarch and Lucid respectively including other application systems design methods.

Deliverables:

• A robust and optimized on-chain validation system, implemented in Plutarch.
• Completed and tested off-chain code, ensuring secure and efficient encryption and data management processes.
• Overall optimized, scalable and secure Application.

User Interface and Experience Development (2 months)

Objectives:

• Design and develop a user-friendly and intuitive front-end for the web application.
• Ensure UI/UX aligns with the needs and expectations of self-custody crypto users.
• Collecting targeted user feedback into the design.

Deliverables:

• A fully functional, scalable, and visually appealing front-end interface.
• User experience testing results and subsequent improvements.

Testing and Optimization (1 month)

Objectives:

• Conduct comprehensive testing, including debugging and high and low-level system optimization.
• Ensure system reliability, security, and performance.
• Smart Contracts Auditing.

Deliverables:

• A detailed testing report, including identified issues and resolutions.
• An optimized system ready for deployment.

Deployment and Documentation (1 month)

Objectives:

• Prepare for and execute the deployment of the solution.
• Complete all necessary technical documentation, including discovered efficient data tokenization strategies, mechanisms, structures and frameworks, token size management analysis and a user guide for the seed phrase platform and other relevant technical documentation.
• Finalize licensing and prepare for public release.

Deliverables:

• A deployed and operational decentralized seed phrase manager.
• Comprehensive documentation covering data management techniques and analysis for developers and for users of the seed phrase manager.
• Produce a finalized definition of Terms and Conditions under decided Licensing.

Launch and Marketing (2 months)

Objectives:

• Technical documentation release.
• Implement an onboarding strategy for new users, including educational materials.
• Develop and execute a marketing plan to promote the solution to target audiences, including self-custody crypto users and centralized exchanges.
• Create a structured report to the community about project delivery.

Deliverables:

• A comprehensive technical documentation released to the community.
• A successful launch with user onboarding materials and support systems.
• Marketing campaign reports, including reach, engagement, and user feedback.
• Community feedback report.

[RESOURCES] Who is in the project team and what are their roles?

Chakravarti Raghavan: https://www.linkedin.com/in/chuck-r-02031a220

• Programming Languages: Haskell, Typescript, Java. 
• Frontend Development: Next.js, Tailwindcss.
• Backend: Haskell 
• Web3 and Blockchain: Plutus, Plutarch, Lucid.

Harun Mwangi: https://www.linkedin.com/in/harunslinked

• Programming Languages: Java, Haskell, Typescript.
• Frontend Development: Next.js, Tailwindcss. 
• Mobile Development: Android.
• Backend Development: Node.js, Postgresql.
• Web 3 Development: Plutus, Aiken, Lucid.

Demilade Jaiyeola (Demmy): https://www.linkedin.com/in/oluwademilade-jaiyeola/

• Programming Languages: Haskell, Typescript.
• Frontend Development: React.js.
• Backend Development: Haskell, Typescript.
• Web3 and Blockchain: Development: Plutus, Plutarch, Atlas, Mesh.

Curtis Myers: https://www.linkedin.com/in/curtis-myers-1798239/

• Programming Languages: Haskell, Typescript
• Frontend Development: React.js, next
• Backend Development: Haskell, Typescript, python
• Web3 and Blockchain: Development: Plutus, Mesh, Aiken, gamechanger
• Project Development: GitHub, CICD, infrastructure automation, project management

Russel Que: https://www.linkedin.com/in/russel-q-7ab064a/

• Programming Languages: Haskell, Typescript
• Web3 and Blockchain: Plutus, Aiken.
• Mobile Development: Android.

Jon Bauer: https://www.linkedin.com/in/jonbauer/

Mobile Development: iOS/Swift.

Web3 and Blockchain: Identus/Atala PRISM, Plutus, Lucid.

Product / Project Management:

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

PROJECT BUDGET BREAKDOWN

Factors for consideration:

Milestone 1:

1. Planning and evaluating decisions on:

• Technical data management research = ₳5,000
• Dapp Architecture and Design. = ₳15,000.
• Backend/Onchain Infrastructural cost = ₳8,250.
• UI/UX workflow. = ₳17,500.
• System architecture design = ₳9,500.

Total = ₳55,250.

Milestone 2:

1. On-chain and Off-chain code development:

• Code optimization complexity: Plutus/Plutarch expertise. = ₳12,500.
• Research and Implementation of recursive encryption and other security and data optimization mechanisms = ₳7,500.
• Development Environment. = ₳5,000.
• Documentation. = ₳5,000.

Total = ₳30,000

Milestone 3:

1. Development of Minimum Viable Frontend Features and Expectations:

• Frontend stack development = ₳20,000
• Development Environment. = ₳2,500
• User feedback Integration = ₳5,000

Total = ₳27,500

Milestone 4:

1. Testing Operations:

• Systems Testing = ₳7,500.
• Debugging and code optimization. = ₳12,500
• Security and data-size Optimization. = ₳17,500
• Specialized Testing Tools and Equipment. = ₳3,000

Total = ₳40,500

Milestone 5:

1. Deployment and Documentation.

• Offchain depolyment and hosting = ₳10,000
• Infrastructural cost = ₳1,250
• Technical documentation and user guide creation. = ₳7,500
• Licensing Finalisation. = ₳1,875

Total = ₳20,625

Final Milestone:

1. Product Marketing. = ₳17,500
2. User support system. = ₳5,000

Total = ₳22,500

Total cost in Ada at price $0.34 = ₳196,375 Ada

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

Answer:

• This project would express the versatility of use cases in which, the Cardano blockchain can facilitate.
• This project would also increase trust within the user community by having a backup for their seed phrase. The sense of safety in having a wallet seed backup would build end-user trust and would encourage the onboarding of more members into the Cardano community.

The cost of the project reflects the cost of the following:

• Smart Contract Development, Optimization and Testing.
• Frontend Development and Testing.
• Dapp Deployment and Hosting.
• Onboarding.