Xerberus: Scam Investigation Registry Engine (SIREN) in cooperation with Iagon

[GENERAL] Name and surname of main applicant

Simon Peters

[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

The Xerberus team represented by its three Co-Founders are leading the proposal supported by the Iagon team represented by its CEO.

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

8

[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)

SIREN is an open registry of fraud-associated wallets. Services that interact with the registry can take the necessary action on these associated wallets, such as denial of services.

[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.”

SIREN will rely on Iagon's decentralised storage solution.

[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

(To be added)

[SOLUTION] Please describe your proposed solution.

SIREN (Scam Investigation Registry Engine) is an open ledger designed to register scam wallets.

This ledger is accessible to the general community and developers alike. Our primary objective is to establish a straightforward mechanism for registering scam wallets and subsequently denying them access to services. By successfully accomplishing this, we aim to make life more challenging for scammers in the future. The most impactful aspect of this database is its potential integration with Centralized Crypto Exchanges, rendering it virtually impossible for scammers to transfer stolen funds from Cardano into fiat currencies.

SIREN is hosted using the decentralized storage network provided by Iagon.

SIREN comprises several components, funded by this proposal:

• Ledger: This serves as the core of our system, recording wallet addresses, scam amounts, victim addresses, and providing links to scam event report and more.
• Interface: The interface enables the general public to access the ledger, search for specific wallets, and read report
• Registry: The Registry Model represents the most sensitive part of SIREN as it manages submissions to the ledger. Please refer to the process section below to gain a thorough understanding of how the registration process operates.
• Xerberus Scam Engine: The Xerberus Scam Engine plays a crucial role since many scammers employ multiple wallets to swiftly move stolen funds out of a registered wallet. Xerberus tracks these funds and automatically registers any new wallet created by scammers, linking it to the original scam. Consequently, once a scammer is registered, they will face significant difficulties in "cleaning" their ill-gotten gains.
• API: Every builder within the Cardano ecosystem can utilize the API to check whether a user's wallet is on the registry. This API can be employed to deny services to specific users or to alert innocent users about engaging with registered scammers.r

The process for submitting a scam wallet is designed to be user-friendly, allowing victims to take step-by-step action while safeguarding against unfair registrations, given the potentially severe consequences. The process entails the following steps:

1. User Report: Victims are required to submit a report detailing how they were scammed.
2. Register a Scam and Victim Wallet: Victims must input their own wallet address and the address associated with the wallet that caused them harm.
3. Send 3 ADA from the Victim Wallet: To prevent database spamming and ensure that the claimant genuinely suffered a scam, users are required to send 3 ADA from the affected wallet. While the wallet may be compromised, the user still possesses the private key and can execute such a transaction promptly.
4. Xerberus Engine Check: The Xerberus engine will validate the connection between the victim's wallet and the scam wallet, confirming if any connection exists at all (a mechanism to prevent baseless claims). Furthermore, the engine will trace the wallets associated with scam wallets.
5. Successful Registration: If all steps have been successfully completed and a connection between the victim's wallet and the scam wallet is established, the registration process is concluded. The scam wallet, along with the corresponding report, will be displayed in the interface and can be accessed via the API.

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

The success of our project, SIREN (Scam Investigation Registry Engine), will bring several valuable benefits to the wider Cardano community:

• Enhanced Security: SIREN will contribute to a safer Cardano ecosystem by providing a mechanism to identify and blacklist scam wallets. This will protect users from falling victim to fraudulent activities and enhance the overall security and trustworthiness of the network.
• Deterrence of Scammers: The presence of SIREN will serve as a deterrent to scammers, making it more challenging for them to operate on Cardano. The risk of being added to the scam registry will discourage malicious actors from engaging in fraudulent activities.
• Trust and Confidence: As users perceive Cardano as a safer blockchain due to SIREN's presence, it will foster trust and confidence in the platform. This may attract more users, developers, and investors to the Cardano community.
• Reduction in Financial Losses: Victims of scams will have a platform to report and track fraudulent activities. This can lead to a reduction in financial losses for individuals and the Cardano community as a whole.
• Data Transparency: SIREN's ledger and interface will provide transparency into scam activities, enabling users to make informed decisions about interacting with specific wallets. This transparency is crucial for maintaining the integrity of the Cardano blockchain.

Measuring Impact:

To measure the impact of our project, we will employ both quantitative and qualitative metrics:

• Number of Scam Wallets Registered: We will track the number of scam wallets registered in the SIREN database over time, providing a quantitative measure of the project's effectiveness in identifying and preventing scams.
• Reduction in Reported Scam Incidents: Monitoring the decrease in reported scam incidents within the Cardano community will serve as a key qualitative indicator of the project's success in deterring scammers.
• User Feedback: We will collect qualitative feedback from users, including victims and community members, to assess their perception of the project's impact on security and trust within the Cardano ecosystem.
• Integration with Exchanges: Success will also be measured by the integration of SIREN with centralized crypto exchanges. The adoption of SIREN by exchanges will validate its effectiveness in preventing the movement of stolen funds from Cardano to fiat.

Sharing Outputs:

We are committed to sharing the outputs and opportunities resulting from our project with the Cardano community and relevant stakeholders:

• Regular Reports: We will provide regular reports on the number of registered scam wallets, the reduction in reported scam incidents, and user feedback. These reports will be made publicly available to the Cardano community.
• Collaboration with Exchanges: Our goal is to collaborate with centralized crypto exchanges to integrate SIREN into their platforms. This integration will be communicated to the Cardano community, highlighting the added security layer provided by SIREN.
• Community Engagement: We will actively engage with the Cardano community through forums, social media, and community events to gather feedback, address concerns, and promote awareness of SIREN's impact.
• Documentation and Resources: We will create documentation and educational resources to assist users, developers, and exchanges in understanding and integrating with SIREN.

The success of SIREN will bring value to the Cardano community by enhancing security, deterring scammers, building trust, reducing financial losses, and providing transparency. We will measure impact through quantitative and qualitative metrics and share our outputs through reports, collaborations, community engagement, and educational resources.

[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?

Behind this proposal, there are two teams with a proven track record, each contributing their expertise to meet the central requirements of the project: tracking down scam wallets and hosting a decentralized ledger.

Xerberus Labs LTD:

Xerberus Labs LTD is a registered company in the UK under company number 14966821. They have a remarkable track record in investigating and reporting on abused and stolen funds. Their research reports have garnered significant attention, with nearly 250,000 reads, and they have been cited by news outlets like CoinTelegraph and others for their reporting. Additionally, Xerberus has developed a powerful analytics platform that is actively utilized by the Xercher Community. It's worth noting that Xerberus is on the verge of making this platform fully accessible to the public, further showcasing their commitment to transparency and accessibility.

Iagon:

Iagon is a well-known community project that has successfully developed and operates a fully functioning decentralized cloud storage service. This cloud storage service, with its decentralized nature, is set to play a crucial role in hosting the infrastructure required for this project. The experience and capability of the Iagon team in the field of decentralized cloud storage will be instrumental in ensuring the reliability and security of the hosting environment for the SIREN project.

Together, the combined expertise and accomplishments of Xerberus Labs LTD and Iagon make them a formidable team to tackle the core objectives of the SIREN project, which involves both tracking scam wallets and providing robust decentralized ledger hosting. Their proven track record and ongoing commitment to transparency and innovation make them well-suited to bring this project to fruition for the benefit of the Cardano community.

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

Project Kick-off and Planning concluded in Month 2

• Establish project team roles and responsibilities.
• Finalize project scope, objectives, and detailed requirements.
• Develop a comprehensive project plan with timelines and deliverables.
• Secure any necessary legal and regulatory approvals.

Development of SIREN Components concluded in Month 4

• Begin development of the core components of SIREN, including the Ledger, Interface, Registry, Xerberus Scam Engine, and API.
• Ensure that the decentralized storage network provided by Iagon is integrated and operational.

Alpha Testing and Iteration concluded in Month 5

• Conduct alpha testing of the SIREN system with a select group of users, including victims of scams and community members.
• Gather feedback on user experience and system functionality.
• Iterate on the system based on alpha test results to improve usability and address any issues.

Beta Testing and Security Audit concluded in Month 6

• Launch a beta version of SIREN, open for participation to a wider audience within the Cardano community.
• Conduct a thorough security audit to identify and address vulnerabilities.
• Continue gathering user feedback to further refine the system.

Integration with Services concluded in Month 7

• Begin discussions and negotiations with Cardano Services for the integration of SIREN into their platforms, such as minting platforms, to deny serious scammers. 
• We deliver comprehensive integration guidelines.

Full Deployment and Community Awareness concluded in Month 8

• Officially deploy the fully functional SIREN system, including all components, to the Cardano community.
• Launch a comprehensive awareness campaign to inform Cardano users, developers, and exchanges about the availability and benefits of SIREN.
• Monitor the usage and impact of SIREN, including tracking the number of registered scam wallets and reduction in reported scam incidents.

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

he core team behind Xerberus consists of four highly accomplished and competent members.

Simon Peters is the Director of Xerberus LTD. From 2019 to 2022, he served as the CEO of DECUS Network, a corporate venture based in Berlin. Under Simon's leadership, DECUS secured one million USD in venture funding, and the custody infrastructure he led the development of is currently used by institutional players within the EU. Throughout this period, Simon collaborated with several Tier 1 banks within the EU and conducted activities at the intersection of emerging regulations, institutional adoption of blockchain technology, and creation of technology capable of fulfilling the specific requirements of these intersections. Within 2.5 years, DECUS Network and its clients were fully integrated into the BlockSize Capital Group. The technology developed under Simon's leadership is now employed by firms like Micobo GmbH, serving prestigious clients such as HSBC, Deutsche Bank, Allianz, and others. This experience makes Simon an excellent fit to work on Xerberus for the Cardano community: https://www.linkedin.com/in/snj-peters/

Noah Detwiler (Data Hippo) is the Chief Scientist of Xerberus LTD, responsible for developing the data models supporting Xerberus' Risk Assessment of Cardano native assets. As a physicist, he graduated with distinction and was recognised as an outstanding student on the Dean's List from Ariel University. Noah's background as an applied econophysicist equips him with a profound understanding of the application of mathematical models and statistical analysis to complex economic systems. His proficiency in intricate data modelling, coupled with his expertise in physics and econometrics, empowers him to devise innovative solutions for complex challenges, such as managing the noisy and sparse nature of blockchain data. Throughout his journey, he has honed his skills as a proficient SQL and Python programmer: https://www.linkedin.com/in/noachdetwiler/

Matthias Guilbert is the primary front-end developer at Xerberus. Matthias has had an extraordinary life journey that consistently required him to overcome the impossible. He served in the military for five years before applying the learnings from the French Navy Special Forces to the civilian business world, leading various challenging projects, occasionally in conflict zones. He ultimately became a software developer focusing on real-world solutions enabled by tech products. Matthias' greatest strength is the MERN stack. He is an avid technology enthusiast and continuously learns new programming languages: https://www.linkedin.com/in/matthias-guilbert/

Our fourth full-time core team member and first employee is Mihir. He is a skilled back-end developer who has been coding since his early teenage years. He worked various positions and is a critical support for our development efforts. (https://github.com/Mi88ir?tab=overview&from=2023-07-01&to=2023-07-11)

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

• Iagon Hours: A consistent 40 hours across all months, with an associated cost per month which totals to $17,600.
• Xerberus Backend Hours: Hours vary per milestone, starting with 120 hours in the first two months and adjusting as needed in the subsequent months, with a total cost of $69,600.
• Xerberus Frontend Hours: These begin at the M4 milestone and carry forward, with a total of 40 hours each month from M4 to FM, totaling $36,000.
• Freelancer: Costs are allocated during months where additional hours from a freelancer are needed, totaling $16,000.
• Buffer: An additional amount set aside each month for unexpected costs, totaling $10,000.

The total budget in USD is $79,600/ 265,333.33 ADA given an ADA price of $0.3.

For those interested in participating in this project, particularly in a freelancer capacity, you are encouraged to reach out to the Xerberus Team. Given the inclusion of an external freelancer in the budget, there may be opportunities for skilled individuals to contribute. To get in touch with the Xerberus Team or inquire about the project, joining the Xerberus Discord!

☝️ The budget table provided outlines the cost distribution for a project over an 8-month period, broken down by milestones (M1 to FM for Final Milestone), months, and the allocation of hours and associated costs for different roles including Iagon, Xerberus Backend, Xerberus Frontend, and an external Freelancer. Additionally, there's a buffer for each milestone to accommodate unforeseen expenses.

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

The costs associated with the development of SIREN (Scam Investigation Registry Engine) represent significant value for money for the Cardano ecosystem for several reasons:

1. Strategic Impact: SIREN addresses a critical pain point within our ecosystem by creating a robust mechanism to deter scammers and secure the ecosystem. By registering scam wallets and denying them service, SIREN enhances the security and trustworthiness of the entire ecosystem, which is invaluable for user confidence and the long-term adoption of Cardano.
2. Cost Justification: The project costs are aligned with industry standards and the average wage for similar roles in the software and blockchain industry. The budgeted costs for Iagon and Xerberus team members are based on average hourly rates for software development and project management roles. For instance, the hourly rates for backend development are typically $40-$50, and for specialized freelance roles, they can go up to $60, which is considered standard. These rates are justifiable given the expertise required to ensure the project's success and are proportionate to the average wage and freelance rates in the industry.
3. External Freelancer Utilization: The involvement of an external freelancer allows for specialized skills to be brought in on an as-needed basis, optimizing the cost efficiency of the project. This approach ensures that the project can leverage specialized knowledge without the overhead of a full-time salary, further representing value for money.
4. Operational Efficiency: The budget includes a buffer, which is a prudent measure to account for unexpected costs without needing additional funding. This demonstrates careful financial planning and risk management.

[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