Cardano's NFC Solution to Counterfeit-Proof Commerce using Asymmetric Encryption

[GENERAL] Name and surname of main applicant

Riz Pabani

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

Entity (Incorporated)

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

Develop an NFC which includes asymmetric cryptographic encryption so it can be used to sign messages or even transactions.

[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.”

Yes we are relying on working with NFC chip manufacturers to enable cryptographic encryption - we will negotiate these bilaterally and use our budget to pay for samples. They would also need to add a process step to their chip manufacturing process to provide a trustworthy seed for generating the key pairs.

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

No

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

An npm package that will enable developers to easily integrate the chips in their product websites will be an outcome of this proposal. This library will be available as an open source project on GitHub.

[METADATA] Horizons

E-commerce

[SOLUTION] Please describe your proposed solution

We discovered a promising new chip that is tiny, flexible, machine washable, and can even be implanted under the skin. It is low-cost and can be integrated into almost any product. The chip supports RFID and has a longer range than current NFC tags.

In contrast, the Ethereum ecosystem's HaLo chip, which also offers asymmetric encryption, is expensive, not designed for mass production, relatively large, inflexible, not machine washable, and does not support Cardano's native encryption method.

We plan to implement code for this chip to support Cardano's asymmetric encryption method, incorporate it into a hardware design, and collaborate with the manufacturer to add a random seed area during production. This will enable the chips to sign messages when tapped with a phone, allowing us to verify potentially every product with a trust anchor on Cardano.

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

This technology opens up the entire market to combat counterfeits, as it can be used in various industries for nearly every product. This includes a lot of community products and brands with merchandise as well.

[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?

Fabian Bormann is part of the team and has a background in hardware programming, along with extensive knowledge of Cardano. He is active in the community with various projects and is a CIP author. Fabian was also involved in a project that used verified products on Cardano with NFT DNA 424 chips. The project includes a research component and an early abort mechanism in our milestones, in case, for example, the proof of concept with the chip programming fails.

• Important note about my person: Please note that notwithstanding any association with the Cardano Foundation, this submission is made solely in my personal capacity and on my own behalf and account

Riz Pabani is a strategist with expertise in technology, project management, and strategic planning. With a rich background spanning financial services, blockchain, enterprise, and government sectors, he excels in driving operational excellence and integrating innovative technologies. His deep passion for the revolutionary impact of blockchain and artificial intelligence underscores his commitment to redefining business practices.

Sacha Windisch is an accomplished entrepreneur with over two decades of experience spanning management consulting, technology, Finance and blockchain. His career reflects a blend of strategic innovation and operational excellence. His expertise in leveraging technology for business transformation makes him an ideal figure to lead our initiatives in the Americas.

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

Milestone Outputs

• The chips have been ordered and programmed, and the chip company is engaged in the overall goal. The hardware-related code for the EdDSA encryption method has been shown to be feasible, and a preliminary implementation has been completed.
• Otherwise, the project will be terminated at this early stage.

Acceptance Criteria

• A Cardano key pair has been created within the chip and it was able to sign a static message

Evidence of Milestone Completion

• A video and screencast demonstrating the chip signing a message and proving this message using an online verify-data-signature website from the Cardano ecosystem

Milestone Outputs

• Develop a proof of concept for chip programming by creating a working prototype that can sign any message using EdDSA when interacting with a phone.
• Write code to integrate this process into a website, allowing the chip to sign a message, extract the public key from a successfully verified message, and resolve it to the entity that first registered it on-chain.

Acceptance Criteria

• The code for interacting with the chips will be open-sourced and should be easy to integrate into websites that can access mobile NFC features.

Evidence of Milestone Completion

• A video and screencast demonstrating an end-to-end process with the chips, including registering the public key on-chain, placing the chip in a demo product, signing a random message, and verifying its signature and authenticity.

Milestone Outputs

• Final report & video

Acceptance Criteria

• A presentation video that effectively communicates the project's impact and future potential.

Evidence of Milestone Completion

• Presentation video published on social media channels

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

Project Manager: Riz Pabani

• Oversee project progress and ensure timely delivery
• Manage communication to chip manufacturer
• Coordinate resources and budget

Marketing Specialist: Sacha Windisch

• Create educational content about the product
• Reach out to onboarding partners and funnel the feedback

Fullstack Developer: Fabian Bormann

• Important note about my person: Please note that notwithstanding any association with the Cardano Foundation, this submission is made solely in my personal capacity and on my own behalf and account

• Hardware-related implementation
• JavaScript development

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

Estimate Duration for Each Milestone

• Milestone 1: 2 months
• Milestone 2: 2 months
• Milestone 3: 1 month

Allocate Resources to Each Milestone

• Milestone 1: PM (50%), Developer (100%)
• Milestone 2: PM (50%), Developer (100%)
• Milestone 3: PM (100%), Marketing Lead (100%), Developer (50%)

Assuming equal monthly rates for simplicity:

• PM: 10,000 ADA/month
• Marketing Lead: 10,000 ADA/month
• Developer: 12,000 ADA/month

Monthly Burn Rates for Each Milestone

• Milestone 1: 2 months * 17,000 = 34,000 ADA
• Milestone 2: 2 months * 17,000 = 34,000 ADA
• Final milestone: 1 month * 26,000 = 26,000 ADA

Subtotal

• Subtotal: 94,000 ADA

Remaining budget for other expenses (e.g., hardware, software licenses, marketing expenses): 56,000 ADA

• Hardware and Development: 800 ADA (NFC chips, testing equipment, development boards)
• Software and Services: 28,400 ADA (Licenses, cloud hosting, security audits)
• Legal and Compliance: 16,200 ADA (Regulatory consultation, IP protection)
• Miscellaneous and Contingency: 10,600 ADA (Travel, supplies, unexpected expenses)

Total: 150,000 ADA

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

The verification process would require the product manufacturer to record a transaction on-chain, linking the chip's public key to a physical product. This could generate a significant transaction volume on Cardano, resulting in fees paid to the protocol and contributing to treasury building.

The project offers significant value to the Cardano ecosystem by:

1. Introducing innovative, low-cost NFC technology with native Cardano support, expanding the ecosystem's real-world applications.
2. Enhancing Cardano's position in supply chain management and product authentication, potentially attracting new users and partners.
3. Developing open-source code that can be leveraged by other projects, fostering innovation within the ecosystem.

Cost justification:

1. Team rates are competitive with industry standards for blockchain and IoT development, reflecting the specialized skills required.
2. Hardware costs (37% of other expenses) are necessary for developing and testing a physical product, ensuring reliability and scalability.
3. Marketing and business development costs (23% of other expenses) are crucial for driving adoption and showcasing Cardano's capabilities to potential partners.
4. Legal and compliance expenses (12% of other expenses) are essential for navigating regulatory landscapes, protecting IP, and ensuring long-term viability.