Open-Source Smart Contracts for AI: Facilitating Model Inference Payments on Cardano

[GENERAL] Name and surname of main applicant

AigenSpace Team

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

Entity (Not Incorporated)

[GENERAL] Requested funds in ada

95000

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

7

[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)

We will develop open-source smart contracts on the Cardano blockchain to automate and secure AI model inference payments, ensuring efficient, transparent transactions in AigenSpace.

[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?

Yes

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

License Choice - We intend to use the MIT License for our smart contract code. This license is widely recognized in the open-source community for its permissiveness and ease of use, allowing others to freely use, modify, and distribute our code.

[SOLUTION] Please describe your proposed solution.

Understanding the Problem

The current AI marketplace, particularly for model inference transactions, faces challenges in transaction security, efficiency, and transparency. The lack of a standardized, automated payment system hinders the scalability of AI services and impacts the trust and participation of AI developers and users.

Our Approach

We propose to address these challenges by developing open-source smart contracts on the Cardano blockchain. This approach leverages the inherent security, transparency, and efficiency of blockchain technology, particularly the advanced capabilities of Cardano, such as lower transaction costs and higher throughput.

Key Aspects of the Solution

• Security and Transparency: Utilizing the Cardano blockchain ensures secure and transparent transactions. Smart contracts will record every transaction immutably, building trust among marketplace participants.
• Automated Payment Processing: The smart contracts will automate payments based on model usage metrics, reducing manual intervention and errors, and ensuring timely compensations.
• Open-Source Collaboration: By open-sourcing the smart contracts, we invite collaboration and innovation, ensuring the system is continuously improved and adapted to changing needs.

Engagement and Impact Demonstration

• Community Engagement: We will engage with AI developers, blockchain experts, and the broader Cardano community for feedback, testing, and improvement of the smart contracts.
• Proof of Impact: The success of the project will be demonstrated through metrics such as the number of transactions processed, the adoption rate by AI developers and users, and the reduction in transaction disputes.

Uniqueness and Benefits

• Innovative Integration: This is one of the first initiatives to integrate smart contract technology for AI model inference payments on the Cardano blockchain.
• Broad Impact: Beneficiaries include AI developers seeking fair and timely compensation, businesses and individuals requiring AI services, and the blockchain community interested in innovative uses of smart contracts.
• Alignment with Cardano’s Vision: This project aligns with Cardano's vision of promoting technological innovation and decentralization, providing a practical application that demonstrates the blockchain's potential beyond traditional finance.

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

Success for the Cardano ecosystem

• Showcasing Cardano's Utility: Implementing smart contracts for AI model inference payments highlights the versatility and capability of the Cardano blockchain beyond conventional financial applications, showcasing its potential in cutting-edge technology sectors like AI.
• Strengthening Trust and Security: By leveraging Cardano's robust security features for transactional processes in the AI marketplace, the project reinforces the perception of Cardano as a secure and reliable platform for diverse blockchain applications.
• Community Growth and Engagement: This project can attract a new demographic to the Cardano community, including AI developers, users, and enthusiasts, contributing to the growth and diversification of the Cardano ecosystem.
• Encouraging Innovation: Our initiative sets a precedent for innovative uses of Cardano's smart contract capabilities, potentially inspiring further blockchain-based solutions in various industries.

Measuring Impact

• Transaction Volume and Adoption Rate: Quantitative analysis of the number of transactions processed through these smart contracts and the rate of adoption by AI developers and users.
• Community Feedback and Engagement: Qualitative assessments through surveys, forums, and feedback sessions with the Cardano community to gauge satisfaction, usability, and areas for improvement.

Sharing Outputs and Opportunities

• Open-Source Repositories: All code, documentation, and tools will be available in open-source repositories, such as GitHub, for easy access and collaboration.
• Community Forums: Regular updates and discussions will be organized through Cardano community forums and platforms to engage with community members, share insights, and gather feedback.
• Partnerships and Collaborations: We will actively seek partnerships within the Cardano community to expand the application of our project and explore new collaborative opportunities.

[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?

Demonstrating Capability

• Experienced Team: Our team consists of skilled professionals with extensive experience in blockchain technology, smart contract development, and AI systems. This includes developers proficient in Cardano's smart contract language, Plutus, as well as experts in AI model development and marketplace dynamics.

Trust and Accountability by Regular Progress Updates: Stakeholders will receive frequent progress updates, including milestones achieved, challenges faced, and solutions implemented. This ensures continuous engagement and transparency throughout the project lifecycle.

Validating Feasibility

• Proof of Concept: Early in the project, we will develop a proof of concept to validate the technical feasibility and effectiveness of our approach. This will involve creating a basic version of the smart contracts and testing them in a controlled environment.
• Community Feedback and Beta Testing: We will involve the Cardano community in beta testing phases, gathering feedback to refine and optimize our solution. Community engagement is also vital for ensuring that our solution aligns with user needs and expectations.

Iterative Development and Testing:

Our project will follow an iterative development approach, allowing us to continuously test, refine, and validate our solutions. This adaptive process helps in promptly addressing any challenges or changes in project requirements.

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

Project Planning And Research

• Resource Allocation: Assign roles and responsibilities, and allocate necessary resources.
• Technology Research: Conduct in-depth research on the Cardano blockchain and existing smart contract solutions.
• Community Engagement: Initiate discussions with the open-source community for collaboration and support.
• Development Framework Setup: Establish the development environment and tools needed for smart contract creation.

Smart Contract Development and Evaluation

• Smart Contract Coding: Begin coding the smart contracts, incorporating open-source community input.
• Iterative Testing: Conduct continuous testing (unit, integration, functional) to ensure contract reliability and security.
• Feedback Integration: Regularly incorporate feedback from developers, users, and blockchain experts.
• Pilot Evaluation: Collect and analyze data to assess the performance and impact of the smart contracts.

Refinement and Deployment

• Refinement: Based on pilot feedback, refine and optimize the smart contracts and integration processes.
• Community Review: Present refined smart contracts to the open-source community for final review and suggestions.
• Documentation Update: Update all project documentation, including user manuals and technical guides.
• Launch Event: Officially launch the smart contract system

• Continuous Monitoring: Regularly monitor the system for performance and security.
• Community Engagement: Maintain active engagement with the open-source community for ongoing improvements and updates.
• Open Sourcing: Open Source the smart contracts and provide the necessary project documentation

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

Project Lead & Blockchain Developer: Christoph

• Role: Oversees the entire project, ensuring that milestones are met and align with the project's objectives.
• Responsibilities: Strategic planning, team coordination, stakeholder communication, Writing and testing smart contract code, blockchain integration.

AI Model Specialist & Community Manager: Samy

• Role: Ensures that the AI models are compatible with the smart contract framework, Manages engagement with the open-source community
• Responsibilities: AI model integration, performance optimization, user feedback integration, Facilitating community contributions, managing feedback, ensuring open-source standards, project documention

Samy and Christoph have a combined experience of more than 10 years in blockchain development and as machine learning specialists.

If the project is funded Christoph and Samy are planning on onboarding additional senior developers to the project. This will not be a problem due to there vast network of developer connections.

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

Development Phase

• Smart Contract Development: Costs associated with developing the smart contracts, including internal review and performance optimization
• Estimated Cost: 49,000
• Testing Infrastructure: Costs associated with setting up a controlled environment for testing the smart contracts, including testnet tokens and cloud services.
• Estimated Cost: 8,000
• Professional Services (Legal & Compliance): Consulting fees for legal experts to ensure compliance with regulatory requirements and drafting smart contract terms.
• Estimated Cost: 5,000

Pilot Phase

• Pilot Implementation and Monitoring: Costs for deploying the smart contracts on a limited scale, including monitoring tools and analytics.
• Estimated Cost: 8,000

Publicity and Community Engagement

• Marketing and Promotion: Costs for marketing campaigns, promotional materials, and community engagement events.
• Estimated Cost: 7,000

Project Management and Administration

• Project Management Tools: Software and Salary for project tracking, coordination, and management
• Estimated Cost: 5,000
• Reporting and Documentation: Work time for generating comprehensive project reports and documentation.
• Estimated Cost: 13,000

Total Estimated Budget: 95,000

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

Cost Justification

• Proportional to Industry Standards: The estimated costs align with the average market rates for blockchain development and legal expertise. We benchmarked these costs against typical freelance rates and consultancy fees in the technology sector.
• Economical Use of Resources: The budget prioritizes economical resource allocation, ensuring that each expense directly contributes to project milestones.

Value Addition to the Cardano Ecosystem

• Innovation in AI and Blockchain Integration: This project represents a pioneering step in integrating AI with blockchain, specifically within the Cardano ecosystem. It showcases the potential of Cardano in supporting advanced technological solutions.
• Enhancing Cardano’s Utility: By leveraging Cardano for AI model inference payments, we significantly enhance the blockchain’s utility, demonstrating its versatility beyond traditional applications.
• Community Engagement and Growth: The project's open-source nature encourages community participation, fostering growth and innovation within the Cardano ecosystem.

Long-Term Sustainability: The project’s emphasis on compliance and scalability ensures its long-term sustainability, providing ongoing value to the Cardano community.

[IMPORTANT NOTE] The Applicant agrees to Fund 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