Midnight & Digital Identity: Secure Luggage Handling at Airports by Edda Labs

[GENERAL] Name and surname of main applicant

Erick Romero

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

Entity (Not Incorporated)

[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

No

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

Implement a secure luggage handling system using Decentralized Identifiers (DIDs), Verifiable Credentials, and Midnight smart contracts to enhance traceability, accountability, and prevent tampering.

[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.”

Cardano and Midnight blockchain.

[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

Our project is dedicated to full transparency and active collaboration with the community. We are committed to open-source development to foster innovation and trust within the ecosystem.

License Details: We have chosen the MIT License for all components of our project. This permissive license allows others to freely use, modify, and redistribute our software, including for commercial purposes. It supports open innovation while preserving the original copyright.

Scope of Open Source: The entire project, including smart contract templates, integration logic, and user interface components, will be made open source. This approach ensures that developers can freely contribute to and utilize our tools, enhancing their applications without legal barriers.

Community Engagement: By making our project fully open source, we aim to encourage community-driven development and ensure our solutions are continually refined and expanded to meet diverse needs. This commitment aligns with our goal to simplify the adoption of smart contract technology and to enhance the functionality and security of business platforms.

[METADATA] Horizons

Identity & Verification

[SOLUTION] Please describe your proposed solution

Context and Overview: Airports worldwide face ongoing challenges in luggage security. Incidents of tampering, theft, and misplaced accountability persist due to insufficient tracking and transparency. The current reliance on basic barcode tags and centralized systems leaves passengers vulnerable to issues beyond their control, undermining trust in airport security measures.

Our Solution: Enhancing Luggage Security with Decentralized Technology: We propose a transformative luggage handling system utilizing Decentralized Identifiers (DIDs), Verifiable Credentials (VCs), and Midnight—a blockchain platform employing zero-knowledge proofs. This approach creates a secure, transparent, and tamper-proof process from check-in to baggage claim, revolutionizing how luggage is managed and monitored.

Key Components of the Solution:

Unique Digital Identities: Assign a DID to each piece of luggage, checkpoint, and authorized personnel, ensuring all interactions are secure and verifiable.

Zero-Knowledge Proofs for Secure Ledger Updates:

• Midnight uses zero-knowledge proofs to authorize updates on its ledger.
• DIDs communicate with Midnight by providing cryptographic proofs, ensuring that only authorized entities can update luggage status without revealing sensitive information.
• This mechanism maintains passenger privacy while enforcing access rules and authorization protocols.

Privacy-Preserving Smart Contracts:

• Implement smart contracts on Midnight to immutably record every luggage interaction.
• Zero-knowledge proofs enable the enforcement of rules within smart contracts without exposing private data.
• Only authorized DIDs can trigger state changes, ensuring secure and compliant updates.

Verifiable Credentials at Each Stage:

• Authorized personnel issue VCs to the luggage's DID at each checkpoint, providing cryptographic proof of proper handling throughout its journey.
• VCs enhance accountability and enable seamless verification without compromising privacy.

Real-Time Passenger Engagement:

• Passengers can monitor their luggage in real-time using their own DID.
• Receive instant notifications of any anomalies, enhancing transparency and trust.
• Passenger information remains private, as sensitive data is not exposed on the public ledger.

Addressing Current Challenges: Our solution directly tackles existing vulnerabilities by enhancing traceability and accountability. Utilizing Midnight's zero-knowledge proofs ensures that updates to the luggage status are authorized without revealing private information, maintaining passenger privacy while preventing unauthorized handling and tampering. The integration of DIDs and VCs creates detailed, immutable audit trails, making it easy to identify and address issues promptly. Enhanced communication keeps passengers informed about their luggage status, reducing anxiety and building confidence in the system.

Benefits of Implementing This Solution: Implementing this system offers significant advantages for all stakeholders. Passengers gain peace of mind knowing their luggage is securely tracked and can verify its status at any time, with their personal information remaining confidential due to zero-knowledge proofs. Airports and airlines benefit from improved operational efficiency, reduced errors, and strengthened security measures, leading to enhanced reputation and customer satisfaction. Security agencies receive more reliable data and clearer accountability, aiding compliance with regulations and facilitating better resource allocation.

Conclusion: By integrating decentralized identifiers, verifiable credentials, and Midnight's zero-knowledge proof-enabled blockchain technology into the luggage handling process, we address the critical shortcomings of the current system. This innovative solution offers a scalable, efficient, and secure method that enhances trust, improves transparency, and sets a new standard for luggage security in the aviation industry—all while preserving passenger privacy and enforcing necessary security rules.

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

Bringing Value to Cardano: Our project significantly enhances the Cardano ecosystem by showcasing the capabilities of Midnight, a fourth-generation blockchain that integrates privacy and decentralized identifiers (DIDs) through zero-knowledge technology. By applying these technologies to airport luggage security—a critical and real-world challenge—we demonstrate how privacy and rule enforcement can coexist in high-stakes environments. This project not only proves the practical applicability of Cardano's technology but also paves the way for industries seeking privacy-focused solutions to adopt blockchain technology natively.

Midnight's Impact on Cardano: As a partner chain that leverages security from other networks, Midnight has chosen Cardano as its decentralized security layer, effectively positioning Cardano as a Layer 0 blockchain. This collaboration is a monumental win for Cardano, as it will attract industries that require privacy and security as integral components of their operations, such as aviation. Furthermore, ADA holders will benefit directly: in addition to ADA staking rewards, they will receive Night, Midnight’s native currency, as additional incentives. This dual reward mechanism strengthens Cardano’s ecosystem, providing more value to its stakeholders and enhancing its role as a foundation for scalable, secure, and privacy-centric applications.

Real-World Application and Broader Ecosystem Benefits: By focusing on a tangible issue like airport luggage security, our project highlights Cardano's and Midnight's ability to support real-world, high-assurance applications. This adaptability broadens Cardano’s ecosystem by enabling diverse solutions that prioritize privacy and security. The successful development of this prototype can inspire other industries to explore Cardano and Midnight for their privacy-focused needs, reinforcing Cardano’s position as a versatile and robust platform for critical applications.

Measuring Impact: Since this is a prototype, we will measure the impact of our project through active engagement with the Cardano community. We will document all development processes on Discord and GitHub, allowing developers and community members to follow our progress, provide feedback, and offer recommendations. This collaborative approach fosters community involvement and helps us refine the solution based on collective insights. At the conclusion of the project, we will simulate the entire workflow of the application to demonstrate its functionality and potential benefits. This simulation will serve as a showcase for airports and relevant stakeholders in future iterations, illustrating the practical viability of the solution.

Long-Term Benefits: The success of this project promises immediate advancements in how industries perceive and utilize Cardano for privacy-focused applications. By providing a detailed prototype and engaging the community in its development, we set the stage for broader adoption of Cardano and its partner chains. The simulation of the workflow serves as a compelling demonstration for potential real-world implementations. This initiative fosters innovation while promoting sustained growth and adoption, contributing to Cardano’s reputation as a leader in blockchain privacy solutions. The collaboration between Cardano and Midnight offers unparalleled opportunities for developers, businesses, and ADA holders, driving forward a future of decentralized, privacy-centric applications across various sectors.

[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?

Proven Expertise in Zero-Knowledge Technology: Edda Labs secured first place in the inaugural virtual Midnight hackathon, competing against 35 participants and showcasing our expertise in zero-knowledge technology (https://midnight.network/blog/virtual-hackathon-winners). This achievement highlights our deep understanding of privacy-focused solutions and positions us as leaders in leveraging Midnight's capabilities. Our experience with zero-knowledge proofs is directly applicable to the proposed luggage security system, where privacy, secure authentication, and rule enforcement are paramount.

Established Track Record: Beyond our hackathon success, we have a proven track record of delivering impactful blockchain solutions. A prime example is our successfully completed Fund 11 Catalyst proposal, which received outstanding community feedback (Close-out video: youtube) (Project Milestones: https://milestones.projectcatalyst.io/projects/1100190). Our achievements demonstrate our ability to execute complex initiatives and contribute meaningfully to the Cardano ecosystem, particularly through innovative projects that leverage advanced blockchain technologies. This background equips us to tackle the challenges of implementing a secure, decentralized luggage handling system.

Expertise in Privacy and Zero-Knowledge Technology: Edda Labs specializes in developing secure, scalable, and user-friendly blockchain applications tailored to address specific challenges. Our deep expertise in zero-knowledge proofs and privacy-enhancing technologies equips us to build solutions like the proposed airport luggage security system, where privacy, rule enforcement, and accountability are essential. Our portfolio spans various applications, highlighting our versatility and commitment to advancing blockchain technology in real-world scenarios.

Global Collaboration and Expansion: At Edda Labs, we are committed to fostering innovation and driving business growth within the blockchain ecosystem. Our active involvement in the Cardano community, including hosting the Cardano Constitutional Workshop in Peru, reflects our leadership in advancing governance and collaboration discussions. We are also supporting Cardano hubs across Latin America, including Argentina, Colombia, Chile, Paraguay, and Brazil, furthering regional innovation and contributing to the widespread adoption of Cardano technology. These initiatives align with our goal of enhancing business opportunities, fostering local and global innovation, and driving the long-term expansion of the Cardano and Midnight ecosystems.

Project Management and Financial Accountability: Led by professionals with extensive experience in project and business management, Edda Labs is committed to delivering projects with strict adherence to timelines and financial accountability. Our successful completion of a Catalyst-funded project and recognition in the Midnight hackathon attest to our disciplined approach and ability to meet expectations, earning praise from the community. We are confident in our capacity to effectively manage the development of the proposed luggage security system.

Innovative Solutions and Commitment to the Cardano Ecosystem: Edda Labs continues to push the boundaries of blockchain technology by developing privacy-focused solutions and applying advanced technologies such as Midnight, Aiken, Mesh, and reactive databases. By leveraging web frameworks and reactive programming, we build scalable and responsive applications that reinforce our commitment to driving decentralized solutions and advancing the Cardano ecosystem. Our work with Midnight highlights our dedication to integrating cutting-edge privacy technology, making us well-suited to deliver on the promises of the proposed airport luggage security project.

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

Project Planning and Infrastructure Setup

Duration: 2 months

Milestone Outputs:

Comprehensive Project Plan and System Architecture:

• Develop a detailed project plan outlining objectives, timelines, and resource allocation.
• Design the system architecture integrating DIDs, VCs, and Midnight smart contracts.

GitHub Repository Establishment:

• Set up a GitHub repository with the initial code structure and documentation.

Development Environment Setup:

• Configure development tools and environments necessary for the project.

Communication Channels:

• Establish channels on Discord and other platforms for community engagement and updates.

Acceptance Criteria:

• Project plan and system architecture are completed and reviewed by the team.
• GitHub repository is accessible with initial documentation and code structure.
• Development environment is fully operational for all team members.
• Communication channels are live and announced to the community.

Evidence of Completion:

• Project Plan and Architecture Documents: Available in the GitHub repository.
• GitHub Repository Link: Shared with the community.
• Development Environment Proof: Screenshots or reports confirming setup.
• Announcement of Communication Channels: Posts or messages indicating active channels.

DID and VC Implementation

Duration: 3 months

Milestone Outputs: 

Decentralized Identifiers (DIDs) Implementation:

• Develop functionality to assign unique DIDs to luggage, checkpoints, and authorized personnel.

Verifiable Credentials (VCs) System:

• Implement issuance and verification processes for VCs between entities.

User Interface (UI) Development:

• Create an initial UI for assigning DIDs and managing VCs.

Basic Functionality Testing:

• Ensure DIDs and VCs work effectively in a test environment.

Acceptance Criteria:

• Luggage and participants can be assigned DIDs successfully.
• VCs can be issued, presented, and verified between entities.
• UI allows users to interact with DIDs and VCs intuitively.
• Basic compatibility with both desktop and mobile platforms.

Evidence of Completion:

• Code Repository Updates: Code reflecting DID and VC implementation available on GitHub.
• Demonstration Video: Showcasing DID assignment and VC issuance/verification.
• Documentation: Initial guides and explanations published on GitHub.

Integration with Midnight and Smart Contracts

Duration: 4 months

Milestone Outputs:

Smart Contracts Development on Midnight:

• Create smart contracts to immutably record luggage interactions using Midnight's blockchain.

Zero-Knowledge Proofs Integration:

• Implement zero-knowledge proofs to authorize ledger updates securely without revealing sensitive information.

Privacy-Preserving Features:

• Ensure passenger data remains private through encryption and zero-knowledge protocols.

UI Enhancement:

• Update the UI to facilitate interactions with smart contracts and display relevant status updates.

Acceptance Criteria:

• Smart contracts are deployed and functional on the Midnight testnet.
• Authorized DIDs can update luggage status using zero-knowledge proofs.
• Privacy features effectively protect sensitive data.
• UI seamlessly integrates smart contract interactions.

Evidence of Completion:

• Updated Code on GitHub: Reflecting smart contracts and zero-knowledge proof integration.
• Demonstration Video: Showing smart contract operations and privacy features in action.
• Enhanced Documentation: Detailed explanations of smart contracts and privacy mechanisms on GitHub.

Simulation and Testing

Duration: 2 months

Milestone Outputs:

Comprehensive Workflow Simulation:

• Simulate the entire luggage handling process, from check-in to baggage claim.

Testing Under Various Scenarios:

• Conduct tests to assess system performance in different conditions and edge cases.

Bug Fixes and Optimization:

• Identify and resolve any issues, optimizing system performance and reliability.

Community Feedback Collection:

• Engage with the community on GitHub and Discord to gather input and suggestions.

Acceptance Criteria:

• Successful end-to-end simulation of the luggage handling workflow.
• All predefined test cases pass successfully.
• Major bugs are resolved, and performance is optimized.
• Feedback from the community is reviewed and incorporated where feasible.

Evidence of Completion:

• Test Reports: Detailed results available on GitHub.
• Final Demonstration Video: Showcasing the complete workflow simulation.
• Updated Documentation: Incorporating test results and addressing community feedback.

Documentation and Project Wrap-Up

Duration: 1 month

Milestone Outputs:

Final Documentation Completion:

• Compile comprehensive technical specifications, user guides, and system documentation.

Close-Out Report:

• Summarize development progress, challenges faced, and lessons learned.

Community Sharing and Engagement:

• Share the project's outcomes and simulation with the community on GitHub and Discord.

Presentation Materials Preparation:

• Develop materials to showcase the project to potential stakeholders, such as airports and security agencies.

Acceptance Criteria:

• All documentation is finalized, thoroughly covering all aspects of the project.
• Close-out report is completed and made accessible.
• Project and simulation are shared with the community, and discussions are initiated.
• Presentation materials are prepared and ready for future stakeholder engagement.

Evidence of Completion:

• Documentation and Reports: Available on GitHub for public access.
• Final Demonstration Video: Highlighting all features and the project's value proposition.
• Community Updates: Posts on Discord and other platforms announcing project completion.
• Presentation Materials: Slide decks, brochures, or videos prepared for stakeholder presentations.

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

Erick Romero | Blockchain & Full-Stack Developer & Business Strategy

Background: Engineer

LinkedIn: Erick Romero

Twitter: @ErickRomeroEdda

Erick plays a pivotal role in the technical design and architecture of Edda Labs' blockchain projects. As the Blockchain & Full-Stack Developer, he leads the development of smart contracts, ensuring they are modular, secure, and fully aligned with project goals. Erick combines deep expertise in blockchain technology, software development, and project management, strategically guiding each initiative to ensure technical excellence.

With over 15 years of experience in the tech field, Erick has actively participated in the Plutus Pioneer Program, Aiken-Mesh PBL, Marlowe Pioneer Program, Midnight Pioneer Program and the Cardano Blockchain Certified Associate. He has a robust understanding of zero-knowledge technology and its application in smart contracts, thanks to his role as a lead developer in the Midnight hackathon, where Edda Labs secured first place. Additionally, Erick is the co-host of the Cardano Constitutional Workshop in Peru. Fluent in English, Spanish, and Portuguese, Erick's ability to communicate across languages aligns with the project’s multilingual content creation goal. His background in project management is bolstered by a master’s degree in renewable energy and an MBA, ensuring financial discipline and transparency across all projects.

 

Tainá Bugs | Full-Stack Developer & Product Design & Product Owner

Background: Engineer & Designer

LinkedIn: Tainá Bugs

Twitter: @tainabugs

Tainá is a highly skilled Full-Stack Developer with expertise in Next.js and its App Router, managing both backend and frontend functionalities to deliver integrated solutions swiftly and effectively. In addition to her development work, Tainá is responsible for product design, ensuring that client needs are effectively reflected in the application in the most efficient and user-centric way. Her technical expertise allows her to work across all layers of the application, from server-side logic to client-side interactivity, ensuring a seamless user experience.

With over 10 years of experience in the tech field, Tainá brings a diverse background as a civil and metallurgical engineer, as well as a designer. She has also completed the Cardano Blockchain Certified Associate program and, as part of the team that won the Midnight hackathon, she has hands-on experience in implementing zero-knowledge technology within smart contracts. Additionally, she is a co-host of the Cardano Constitutional Workshop in Peru. Fluent in English, Spanish, and Portuguese, Tainá is well-positioned to support the project's goal of producing multilingual content. Her blend of full-stack development, product design, and blockchain expertise positions her as a key asset in delivering innovative and user-centric solutions.

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

Total Budget: 150,000.00 ADA

You can see the detailed budget here: https://docs.google.com/spreadsheets/d/12zuxWdKiyi1DI0YbNi0mCMAYDDPH56pk/edit?usp=sharing&ouid=110349680417320756134&rtpof=true&sd=true

Milestone 1: Project Planning and Infrastructure Setup

Duration: 2 months

Total for Milestone 1: 25,300 ADA

• Blockchain Developer (Zero-Knowledge Proof and Real-Time Database Integration): 13,000 ADA
• Full-Stack Developer & UI/UX Design: 10,000 ADA
• Contingency: 2,300 ADA

Milestone 2: DID and VC Implementation

Duration: 3 months

Total for Milestone 2: 36,575 ADA

• Blockchain Developer (DID and VC Development): 19,500 ADA
• Full-Stack Developer & UI/UX Design: 13,750 ADA
• Contingency: 3,325 ADA

Milestone 3: Integration with Midnight and Smart Contracts

Duration: 4 months

Total for Milestone 3: 49,225 ADA

• Blockchain Developer (Smart Contracts and Zero-Knowledge Proofs Integration): 26,000 ADA
• Full-Stack Developer & UI/UX Design: 18,750 ADA
• Contingency: 4,475 ADA

Milestone 4: Simulation and Testing

Duration: 2 months

Total for Milestone 4: 25,300 ADA

• Blockchain Developer (Simulation Development and Testing): 13,000 ADA
• Full-Stack Developer & UI/UX Design: 10,000 ADA
• Contingency: 2,300 ADA

Milestone 5: Documentation and Project Wrap-Up

Duration: 1 month

Total for Milestone 5: 14,300 ADA

• Blockchain Developer (Documentation and Finalization): 6,500 ADA
• Full-Stack Developer & UI/UX Design: 6,500 ADA
• Contingency: 1,300 ADA

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

Our budget of 150,000 ADA is strategically allocated to deliver a high-impact solution that addresses a critical issue in the aviation industry. By focusing resources on essential development roles—specifically, a Blockchain Developer and a Full-Stack Developer—we ensure efficient use of funds while maximizing the project's effectiveness.

Key aspects demonstrating exceptional value for money:

• Significant Cost Savings for the Aviation Industry: Mishandled luggage costs airlines globally an estimated $2.1 billion annually (source: SITA Baggage IT Insights). By reducing incidents of tampering and loss through our secure tracking system, airlines can save substantial amounts, offering a strong return on investment for adopting this technology.

• Efficient Resource Utilization: Employing a lean development team minimizes overhead costs without compromising the quality of the deliverables. This streamlined approach ensures that most of the budget is dedicated to core development activities that directly contribute to the project's success.

• Scalable and Reusable Solution: The technology and framework developed can be scaled across airports worldwide and adapted for other industries requiring secure asset management. This scalability enhances the long-term value and impact of the initial investment.

• Leveraging Advanced Blockchain Technology: By utilizing Midnight's zero-knowledge proofs and Cardano's blockchain, we deliver a state-of-the-art solution that is secure, transparent, and future-proof. This reduces the need for frequent updates or overhauls, resulting in cost savings over time.

• Enhancing Cardano's Ecosystem Value: Demonstrating a real-world application of Cardano and Midnight elevates the platform's reputation and attractiveness to other developers and industries. This can lead to increased adoption and potentially enhance the value of ADA for holders.

• Potential for Revenue Generation: The prototype can pave the way for commercial applications, licensing opportunities, and partnerships with airlines and airports. The revenue potential from such collaborations can significantly exceed the initial project investment.

• Addressing a Critical Security Need: Enhancing luggage security improves passenger satisfaction and trust, potentially leading to increased airline revenues. Investing in solutions that directly impact customer experience offers high value for money.

By strategically allocating our budget to focus on these high-impact areas, we ensure that every ADA invested contributes to a solution with the potential for substantial industry-wide benefits. Our project not only addresses a costly problem but also sets the foundation for future innovations and applications, maximizing the return on investment.