Cardano's Transactions for Bank credits score

[GENERAL] Name and surname of main applicant

NKALLA EHAWE DIDIER JUNIOR

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

Individual

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

12

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

Yes

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

Provide users and banks with a MVP to leverage operations performed on the Cardano platform in the process of computation of credit score to improve the user's solvency level and financial inclusion.

[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?

No

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

N/A

[METADATA] Horizons

DeFi

[SOLUTION] Please describe your proposed solution

Context

Globally, around 1.7 billion adults are still unbanked, that means without an account at a financial institution or through a mobile money provider. In 2014, this number was 2 billion [confere https://globalfindex.worldbank.org/sites/globalfindex/files/chapters/2017%20Findex%20full%20report_chapter2.pdf]. Because account ownership is nearly universal in high-income economies, virtually all unbanked adults live in developing economies. This proportion of people is automatically excluded from traditional bank credit. If those people open their account on Cardano blockchain and could obtain bank credit, it will increase dramatically transaction on Cardano blockchain. The criteria for access to traditional bank credit do not take into account external data to the banking systems. This drastically reduces the number of people who can access bank credit. However, among these two categories of people set aside by the not really intelligent filter of the banks, there are undoubtedly customers of good character, producing values, making transactions, which, taken into account in the calculation of the credit score, would give them a solvency enabling them to access bank credit.

With the advent of cryptocurrency which offers enormous flexibility, freedom, security, decentralization, as well as cheaper fund transfers, many people have opted for this alternative. They produce a lot of values there. The Cardano platform with its ADA cryptocurrency has seen quite a high flow of transactions lately. These multifaceted transactions constitute values for the customer.

Moreover, crypto-currencies do not have a system that is efficient enough to grant credit, the basis for financing projects that are the main levers of development. On the other hand, traditional banking systems have a system for granting bank credit. But only access to traditional bank credit incorporates filters that exclude a good number of solvent people (who produce values not taken into account in the determination of conventional solvency). Transactions made on Cardano's platform would be quite important elements that would give financial institutions relevant arguments to not only improve the criteria for selecting applicants for bank loans, but also allow the inclusion of those who had no access at all to traditional banking services.

Methodology / approch

This will involve providing financial institutions (or any other third-party institution), at the customer's request, with organized multiform information, allowing them to integrate it into the process of calculating the credit score. It is about creating an interactive platform allowing anyone with an account on cardano (Cardano Wallet), to collect, group their transactions information so that they can be used in the process of calculating the credit score and to be able to make it available to the banking/financial institution of their choice. Make banking/financial institutions understand that on the Cardano blockchain multifaceted values are produced and should be taken into consideration in the assessment of the creditworthiness of customers.

The solution will include a client application (web client, mobile application) and a server application that interact with Cardano blockchain. On the client application, the user will be able to access the values he has produced resulting from his transactions on the Cardano blockchain. The server application will be a combination of artificial intelligence and machine learning that will extract transactions of a user on the Cardano platform, process them and organize them in formats desirable by the user and the bank institution. It will make those data available to banks after verification and express authorization by the user via the client application.

How it works?

1. From an interface, the user requests the collection on the Cardano blockchain, necessary information that can be taken into account in the calculation of the credit score.
2. The application accesses the customer's transactions on Cardano, collects the information, processes it and makes it available to any applicant. This data is updated as the user completes transactions.
3. From an interface, the third-party institution inserts the cardano wallet address of his customer requesting the credit and accesses the processed information.
4. The third-party institution chooses the format in which it needs the information to be formatted and imports it (many format wil be available: PDF, CSV, TEXT, XML, JSON, etc).
5. The import can be done through sending an email, sending it to a file server, downloading locally, to an API end-point, etc.

A use Case

Ewané is a young Plutus developer. He has developed applications on the Cardano blockchain. In his applications, he has integrated smart contracts that take (with the permission of the user) a delta from each user transaction for the benefit of his account. These applications constitute values for Ewané. 

Having knowledge of agriculture as the son of a farmer, Ewané would like to diversify his activities by launching an agricultural project. But he does not have the financial means to achieve his goals.

On the Cardano platform, its applications are gradually increasing in value. The interest of users in its applications, the penetration rate of its applications, the evolution curve of the number of users of its applications, the evolution curve of the number of transactions in its applications are growing .

Ewané goes to a bank to lend money to start his agricultural project. Considering only the classic criteria (Payment history, Total amount owed, Length of credit history, Types of credit, New credit) for the granting of credit, Ewané would be refused credit. Because it would not meet several of the conditions considered by the bank. Its solvency would be certainly quite low. However, Ewané is a trustworthy man. Beyond trust, it produces value on the Cardano blockchain. These values could be used as a guarantee to increase Ewané's solvency and allow it to benefit from the credit.

With the application available, Ewané could convince the bank to take into consideration the values he produces on the Cardano platform in determining his creditworthiness. If the bank agrees to take these values into consideration, it will query the application, which will provide it with information on Ewané's solvency based on criteria such as:

• The balance of Ewané in ADA,
• Consistency in transactions,
• The interest that users have in its applications on Cardano platform,
• The penetration rate of its applications,
• The scalability of the number of users of its applications,
• The evolution curve of the number of transactions in its applications,
• The increase in the accumulation of deltas deducted from user transactions,
• etc

Parameters favoring the increase of Ewané's chances of obtaining credit and then financing his agricultural project.

Added value

 

1. For anyone active on Cardano and producing values that can be considered on other platforms is a real added value to the Cardano system. The application allows Cardano to make quite an important feature available to customers.
2. The app allows Cardano to contribute to the inclusion in bank credit of people initially excluded by traditional methods.
3. The app will drive people to adopt the Cardano blockchain, build loyalty among common users, and help financial inclusion for a population of over 1.7 billion people.
4. The application allows banks to integrate values other than those considered by traditional criteria into the credit score calculation process.
5. The application will allow Cardano to think about integrating the decentralized credit service into its platform thanks to the results of business intelligence (BI) and machine learning (ML) that will be made available. 

The project engages many experts in varying domains:

1. Expert in financial domain
2. Expert in Computer System (software application)
3. Expert in software security
4. Expert in BI (business intelligence) and machine learning (ML)

The Plutus Application Backend will integrate a backoffice for managing:

• users and their actions on the platforme,
• financial institution and their actions on the platform, 
• cardano transaction data,
• data collected on the terrain for survey,
• etc

and mesure it impact on population by showing the growing:

• curve of the number of persons accessing bank credit who did not initialy get access to bank credit.
• curve of the number of financial institution using the application.
• curve of the number of bank loans granted thanks to the use of the application

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

The future application will promote and encourage the adoption of the Cardano blockchain therefore will bring more users therefore more transactions, it will contribute to customer loyalty. The application will allow integration with other systems such as financial systems.

Added value to the Cardano ecosystem

1. For anyone active on Cardano and producing values that can be considered on other platforms is a real added value to the Cardano system. The application allows Cardano to make quite an important feature available to customers.
2. The app allows Cardano to contribute to the inclusion in bank credit of people initially excluded by traditional methods.
3. The app will drive people to adopt the Cardano blockchain, build loyalty among common users, and help financial inclusion for a population of over 1.7 billion people.
4. The application allows banks to integrate values other than those considered by traditional criteria (smart contracts) into the credit score calculation process.
5. The application will allow Cardano to think about integrating the decentralized credit service into its platform thanks to the results of business intelligence (BI) and machine learning that will be made available. 

[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?

Trackable record of past delivered projects

In Africa, we say, "A tree is recognized by its fruit," meaning past actions are the best judge. DIT Cameroon has secured funding for multiple Catalyst projects in previous funds and delivered on all promises. 

As co-founder of DIT-Cameroon, we have experiences and expertises to ckle the problem exposed in this project

Below are all the projects

Spread Plutus in Africa

• Close-out report for Spread Plutus in Africa: here
• Close-out video here

Planting Roots in Africa

• Close-out report for Planting Roots in Africa: here
• Close-out video here

Nurturing Roots Part 1

• Close-out report for Nurturing Roots Part 1: here
• Close-out video here

Wada documentary:

• Close out report for Wada documentary: here
• Close-out video here
• Documentary trailer here

Clubs + Hackathon

• Close out report for Clubs + Hackathon: here
• Close-out video here

Dev. Journey into DID Paradigm:

• Close-out report for Dev. Journey into DID Paradigm: here
• Close-out video here

Small Change Wallet:

• Close-out report for Small Change Wallet: here
• Close-out video here
• Dapp prototype  here

Djangui: local savings accounts mgmt

• Close-out report for Djangui: local savings accounts mgmt: here
• Close-out video here
• Dapp prototype  here
• GitLab Repo  here

Regenerative NFTrees

• Close-out report for Treedano: Regenerative NFTrees: here
• Ongoing report for Treedano: Regenerative NFTrees: here
• Close-out video here
• Dapp prototype demo  here
• GitLab Repo  here

Mentalyse : Learn through fun

• Close-out report for Mentalyse: : Learn through fun: here
• Ongoing report for Mentalyse: Learn through fun: here
• Close-out video here
• Dapp prototype demo here
• Dapp prototype  here
• GitLab Repo  here 

Lost |&| Found:

• Close-out report for  Lost |&| Found: here
• Ongoing report for: Lost |&| Found: here
• Close-out video here
• Dapp prototype  here
• GitLab Repo  here

Highly diverse and Capable Team on the ground

DIT is a multilingual team that has actively produced Web3 training content and prototype DApps in both French and English over the past three years. Our diverse, determined team is committed to their mission of integrating Web3 in Africa, with a focus on local community paradigms.

Hess: Co-Founder and CFO at DIA, Wada Hub Liaison, Wada Cameroon Hub Co-Lead, Maths & Physics teacher, bilingual (French & English)

Manfo: Co-Founder and CEO at DIA, Cameroon Team Co-Lead, Senior software architect & developer, 12+ years of experience programming, 6+ years in functional programming paradigm (F#, Haskell, Elm, PureScript), Multilingual (French, English, Italian, Ngiembo), Famer

 

Nkalla: Co-Founder and CTO at DIA, Senior software architect & developer, 12+ years of experience programming, 4+ years in functional programming paradigm (Haskell), Mathematics teacher (Education Systems Engineering), Multilingual (French, Italian, English, Mbo), Famer

Mermoz: Cultural liaison at DIA, Researcher in African Crypto communication, writer, farmer, poet and engineer. 

Maureen: Community builder, event & communication coordinator. 

Ntet: Junior software architect and developer, 4+ years of programming experience, 1+ year in functional programming paradigm (Haskell), Smart contract development (Plutus) multilingual (French, English, Bassa).

Neudjieu: Junior Software Engineer with 2 years of experience, multilingual (French, English, Medumba), 2D/3D Computer Graphic Designer experience. Entrepreneur oriented and self-taught who loves new challenges.

Tiotsop: One year of experience in applying machine learning and data science to financial markets. His work has been on extracting insights from financial data, enhancing decision-making processes, and addressing challenges specific to this domain, multilingual (French, English, Italian, Ngiembo).

Maffouo: Maffouo holds a Bachelor degree in Physics, he is a Physics teacher and Farm supervisor. He is passionate about applying physics to his farming endeavor. Bilingual (French, Ngiembo).

Community held events / Hackathons

• January 2022 Hackaathon: Introduction to Haskell

• Recorded Session
• Lectures & challenge material
• 1K USD in prizes awarded to participants

• June 2022 Hackathon: The fundamentals
• Recorded Session
• Lectures & challenge material
• 1K ADA in prizes awarded to participants

• November 2023 Hackathon: DID, SSI, DLTs

• Recorded Session
• Lectures & challenge material
• 1,2K ADA in prizes awarded to participants

Summary:

Total funding received & accomplishments over the past 2-3 years ($168K) 

• Acquired and furnished IT Center (DIT Cameroon) in Douala: 2021 - Present
• Established library with 300+ IT, Farming, Anthropological books and more
• Secured initial funding for 9 projects on Cardano Project Catalyst  ($157k)
• Completed First Haskell, Plutus, DLTs and Software Architecture Training Campaign 21+ interns trained over 2 years
• Hired top 2 interns now collaborating with with us
• Held 3 prized hackathon in parallel to our training initiative 
• Held multiple blockchain related in person and online events
• Launched Second Training Campaign (Extending it to Wada’s Ghana, DRC and Burkina Faso hubs)
• Delivered 9 out of 9 projects funded on the Project Catalyst Platform 4 of them are fully functioning Dapp prototypes.
• Acquired 111 Acres of land on which we are currently implementing one of our core Treedano: Regenerative NFTrees project as a proof of concept. 
• Planned and hosted a Cardano summit within our hub
• Planned and hosted a Intersect Constitutional working group
• Planned and hosted a Intersect Constitutional workshop
• Started setting up our network of Cooperatives (DIA Web of Coops)

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

Initial preparation and framing (02 Weeks)

1. Preparation of the administrative aspect of the project
2. Familiarisation meeting between domain expert and engineers
3. Preparation of document giving authorization to provide and collect information
4. Setting up a planning workshop to produce de project schedule
5. Writing of the inception report and validation

A- Milestone outputs

Inception report

B- Acceptance criteria

The inception report must include :

1. The report of the familiarisation meeting
2. Information collection questionnaire
3. Overall project planning for each week

C- Evidence of milestone completion

Inception report

Study and Analysis of the domain (10 Weeks)

1. Identification of different actors involved in the project
2. Advance research and documentation in the geolocalization domain
3. Identification of the needs and services of the actors involved
4. Analysis, Evaluation and synthesis of the data and needs obtained
5. Writing a document presenting the system and the needs expressed (Specification)
6. Organization of an Ad-hoc workshop to validate te specifications.
7. Validation of the specification with the actors involved

A- Milestone outputs

Specification and requirement documents

B- Acceptance criteria

Specification and requirement documents must include three parts:

1. Part 1: Part 1 must present the project owner as well as the motivations from which the project took shape.
2. Part 2: The second part must present the project as a whole. More precisely, it must pose the problem that the solution will solve, present the context in which the problem arises and how the project will provide solutions. It will also present the project's objectives. It must also express Functional as well as Non-Functional Specifications.
3. Part 3: The third part includes the project progress (Planning, teams, tasks and activities) as well as specific deliverables

C- Evidence of milestone completion

Specification and requirement documents

Prototype Application design (14 Weeks)

1. Identification of the appropriate technical features
2. Identifying different components with their functions
3. Modeling business features in for all components
4. Determining appropriate technologies for each component
5. Designing of the global architecture of the platform
6. Writing documents relates to the design system
7. Validation of system design documents

A- Milestone outputs

Design documents (UI/UX design, Technical design)

B- Acceptance criteria

The Design documents must include :

1. Technical analysis report
2. Design report (UI/UX design, Technical design)

C- Evidence of milestone completion

Design documents

Acquisition of hardware and software infrastructure (02 Weeks)

1. Acquisition of hardware and software infrastructure
2. Installation, system configuration and security on the acquired hardware and software

A- Milestone outputs

Infrastructure available (virtually or physically)

B- Acceptance criteria

1. Photo of devices
2. Account to access to the infrastructure on the cloud

C- Evidence of milestone completion

Availability of infrastructure

Application development (26 Weeks)

1. Acquisition of development environment
2. deployment of development environment
3. Development and integration of technical feature
4. Development, integration and test of business features

A- Milestone outputs

Link and access account to the source code on the git hub platform

B- Acceptance criteria

1. Testing features on the test platform

C- Evidence of milestone completion

Functioning prototype including all features and use-cases

Deployment (02 Weeks)

Access link to the online application and on Google play store.

Close out report & Close out Meet up

• Produce and edit a comprehensive close out report.
• Produce and edit close out video
• Host a final community meetup to review project outcomes and impact. 

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

Content Creator, Instructor, Lecturer

• Nkalla 
• Manfo
• Mermoz

Workshop Lead / Hackathon Monitor / Evaluator

• Nkalla 
• Manfo
• Dzubang

Event Organizer, Community Manager, Secretary

• Megan 
• Maureen

Administration

• Megan

On ground NFtree Operations Lead, 

• Maffouo
• Nkalla

Farm Manager, Farm related Workshop Lead

• Maffouo

Software Analyst / Tester

• Ntet
• Neudjieu
• Maureen
• Mermoz
• All community members

On ground IT related workshop support, Instructor assistant

• Ntet
• Neudjieu

AI Expert

• Tiotsop

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

• Cloud Server Acquisition: $30 x 12 + $30 x 12 + $80 x 12 = $1680
• Development server: $30 per month
• Test Server : $30 per month
• Production server: $80 per month
• GPS acquisition (to capture tree position that will be transform in NFT) $500
• Software Acquisition: $800
• gitlab professional 
• Kubernetes 
• Jenkins
• Slack
• Google Play account $50
• Etc

• Core Team motivations ($500 x 2 + $300 x 2 per month x 12 months): $19 200
• Manfo: $500 per month
• Hess: $300 per month
• Nkalla: $500 per month
• Dzubang: $300 per month
• Support Team motivations ($200 ea per month x 4 x 12 months): $9 600
• Ntet: $200 per month
• Raoul: $200 per month
• Maffouo: $200 per month
• Maureen: $200 per month
• Misc: $2 000

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

Bank institutions will have their accounts on Cardano ecosystem and they will make many transactions.