Cardano-Midnight ZKBridge: Port Assets between Midnight and Cardano

[GENERAL] Name and surname of main applicant

Rahul Konudula

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

Entity (Incorporated)

[GENERAL] Requested funds in ada

120000

[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)

Midnight Bridge: This bridge enables Cardano's assets to leverage Midnight advanced features for secure transactions for privacy focused usecases. This also allows two-way portability of assets.

[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

The project will be open source under MIT License. This will allow anyone to do whatever they wish with the original code, as long as the original copyright and license notice is included either in the distributed source code or software.

[METADATA] SDG rating

SDG Goals

8 - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9 - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

17 - Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development

SDG Subgoals

17.19 - By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries

9.1 - Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all

9.b - Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities

[SOLUTION] Please describe your proposed solution

Cardano users face limitations in accessing advanced features and broader investment opportunities beyond its native DeFi ecosystem. To address this gap, the Midnight ZK Bridge proposes a secure two-way gateway between Cardano and Midnight ZK, facilitating seamless token transfer while preserving user privacy. This paper outlines the functionality, benefits, and significance of the Midnight ZK Bridge in enhancing the Cardano ecosystem and advancing decentralized finance (DeFi).

Introduction:

The emergence of decentralized finance (DeFi) has transformed the financial landscape, offering users unprecedented control over their assets and transactions. However, within the Cardano ecosystem, users are confined to the functionalities of its native DeFi ecosystem, restricting access to cutting-edge features and broader investment opportunities available on other platforms such as Midnight ZK. To bridge this gap and empower Cardano users with enhanced privacy and interoperability, the Midnight ZK Bridge is proposed.

Functionality:

The Midnight ZK Bridge serves as a secure two-way gateway, enabling seamless transfer of Cardano native tokens to Midnight ZK and vice versa. The core functionalities include:

1. Minting zkCNTs: Users can deposit Cardano tokens into the bridge, which then mints privacy-preserving zkAssets on the Midnight ZK blockchain. These zkAssets represent the original tokens while shielding transaction details, akin to the privacy afforded by cash transactions.
2. Verifiable Contracts: Secure and verifiable smart contracts deployed on both Cardano and Midnight ZK govern the minting and burning of zkCNTs, ensuring trustless operation and guaranteeing the value of the underlying Cardano tokens.
3. Selective Disclosure (Optional): Inspired by advanced privacy protocols, the bridge may offer users the ability to selectively disclose transaction information, enabling them to prove transaction legitimacy without revealing all details, thus balancing privacy and transparency.

Benefits for the Cardano Ecosystem:

The Midnight ZK Bridge offers several benefits to the Cardano ecosystem:

1. Enhanced User Privacy: Cardano users gain access to Midnight ZK's privacy features, enabling them to conduct transactions shielded from public scrutiny, thereby empowering them with greater financial control and security.
2. Expanded DeFi Opportunities: The bridge unlocks a wider range of DeFi applications and services available on Midnight ZK, including innovative lending, borrowing, and trading options, thus maximizing users' financial potential.
3. Increased Interoperability: By fostering interconnectivity between Cardano and other blockchains, the Midnight ZK Bridge promotes a more unified and vibrant DeFi landscape within the broader blockchain ecosystem.

Conclusion:

The Midnight ZK Bridge plays a crucial role in the future of DeFi by prioritizing user privacy, promoting interconnectivity, and enhancing user choice. By enabling seamless token transfer while preserving privacy and security, the bridge facilitates a more user-centric and inclusive financial environment within the Cardano ecosystem and beyond.

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

Empowering Cardano Users with Privacy

The Midnight ZK Bridge unlocks a new era of privacy for Cardano users. By leveraging zk-SNARKs and secure smart contracts, the bridge allows users to seamlessly transfer Cardano native tokens (CNTs) to Midnight ZK and conduct DeFi transactions shielded from public scrutiny. This empowers users with greater financial control and security, attracting a wider audience to the Cardano ecosystem.

Expanding DeFi Horizons for Cardano

The bridge acts as a gateway to the diverse DeFi landscape on Midnight ZK. Cardano users gain access to a wider range of innovative DeFi applications and services, unlocking new investment and earning opportunities previously unavailable within the Cardano ecosystem. This fosters a more vibrant and competitive DeFi environment, benefiting both users and developers within Cardano.

Improving interoperability

The Midnight ZK Bridge is a crucial step towards a more interoperable future for DeFi. By facilitating secure communication and asset flow between Cardano and Midnight ZK, the bridge contributes to a more unified and interconnected blockchain landscape. This benefits the entire DeFi community by promoting collaboration, innovation, and the overall growth of the decentralized finance space.

[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?

The team is composed of experts in blockchain technology and financial services with a proven track record for delivering high-quality Cardano-built solutions with transparency and accountability. Our existing products have served to enhance the Cardano ecosystem in a tangible way, we have strong strategic partnerships and we intend to deliver the project with the same level of quality that the Cardano Community has come to expect from us.

With a collective experience of over 30 years in the blockchain domain, our team is well-equipped with the necessary expertise to develop and deliver this project.

Development Team:

Our development team boasts significant expertise in blockchain technology, with a strong focus on the Cardano ecosystem. They have played a pivotal role in several successful projects on Cardano and are skilled in developing dApps on Cardano.

Zero-Knowledge Proofs:

Our team includes pioneers in the Midnight ZK framework, possessing both knowledge and practical experience in applying Zero-Knowledge Proof (ZKP) methodologies.

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

Outputs:

• Requirements Specification: Detailed functional and non-functional requirements for the bridge, including user roles, data flow, and security requirements.
• Architectural Design: High-level architectural design of the bridge, detailing the components that will facilitate the minting and burning of zkCNTs and the integration with Midnight ZK.

Acceptance Criteria:

• Architectural design, ensuring it meets the necessary standards for secure and efficient operation.

Evidence:

• Architectural design documents and system integration flow diagrams.

Outputs:

• Core Bridge Implementation: Development of the core functionalities of the Midnight ZK Bridge, enabling the deposit of Cardano tokens and the minting of zkAssets on Midnight ZK.

Acceptance Criteria:

• Core bridge functionalities are implemented and demonstrate basic operational capacity.

Evidence:

• Code repository links showing the implementation of the bridge's core functionalities.

Outputs:

• Basic Unit and Integration Tests: Tests to verify the basic functionality of the bridge, including token deposit, zkAsset minting, and initial contract verification.

Acceptance Criteria:

• Test reports demonstrating coverage and pass rates.

Evidence:

• Any identified issues are addressed and patched.

Outputs:

• Comprehensive Documentation: Complete documentation including setup guides, operational manuals, and technical specifications for end-users and developers.
• Project Close-Out Report: A comprehensive report summarizing the development process, outcomes, key learnings, and strategic recommendations for future scaling.
• Promotional and Educational Video: A video that explains the functionalities, benefits, and operation of the Midnight ZK Bridge, highlighting its role in enhancing privacy and DeFi opportunities for Cardano users.

Acceptance Criteria:

• The PoC is stable on test networks and demonstrates all planned functionalities effectively.
• Documentation is comprehensive, providing clear guidance for all aspects of the bridge.
• The close-out report gives a detailed overview of the PoC development, with constructive feedback and pathways for future development.
• The video effectively communicates the value and functionalities of the bridge to a broad audience.

Evidence:

• Links to the open-source repos.
• Digital copies of all comprehensive documentation.
• Project close-out report.
• Link to the promotional and educational video.

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

Rahul Konudula, CEO - Trivolve

He has founded companies across real estate, international commodities, and mineral mining that have been running successfully for more than a decade with 8 figure annual revenue in USD. He has over eight years of experience in the RWA sector, focusing on bringing innovative solutions by integrating AI and Blockchain and consistently being one of the leading contributors to industry advancements in South India.

Trivolve Tech

We are a prominent AI and Blockchain development studio based in Dubai and India, specializing in creating innovative solutions for the Asia-Pacific region. With a dedicated team of 31 professionals, we have been serving over 20 enterprise clients, including governments, venture capital firms, and Fortune 500 companies, for more than three years. Our expertise extends to consulting for leading Cardano projects, leveraging our extensive experience in product development.

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

Milestone 1:

Total Duration: 45 Days

• Senior Cardano Developer: 15000 ADA
• Smart Contract & ZK Developer: 20000 ADA
• Solution Architect: 5000 ADA

Total: 40000 ADA

Milestone 2:

Total Duration: 45 Days

• Senior Cardano Developer: 15000 ADA
• Smart Contract & ZK Developer: 20000 ADA
• Solution Architect: 5000 ADA

Total: 40000 ADA

Milestone 3:

Total Duration: 30 Days

• Senior Cardano Developer: 10000 ADA
• Smart Contract & ZK Developer: 15000 ADA
• Solution Architect: 5000 ADA

Total: 30000 ADA

Final Milestone:

Total Duration: 30 Days

• Smart Contract & ZK Developer: 10000 ADA

Total: 10000 ADA

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

Cardano community gain access to Midnight ZK's privacy features, allowing them to conduct DeFi transactions on Cardano dapps without revealing their financial activities on the public blockchain. This brings greater control over their financial data and potentially attracts privacy-conscious users to the Cardano ecosystem. Users can explore innovative ZK enabled DeFi opportunities, like compliant and privacy-centric zero collateral lending and similar applications. Users can move their Cardano native tokens (CNTs) back and forth between Cardano and Midnight ZK effortlessly. Bringing more participation and adoption in both the chains.

This opens doors to a new user base seeking privacy-focused DeFi experiences, potentially increasing adoption and user engagement for their dapps. By integrating the bridge into their dapps, builders can incorporate Midnight ZK's advanced ZK functionalities. This allows them to create more innovative and privacy-centric dapp on Cardano.

We utilize a lean development methodology, emphasizing the prioritization of development and enhancements based on feedback from partners, the community, and users, which ensures efficient and cost-effective use of resources. Our strategic employment of a geographically diverse team spanning the US, Singapore, and India allows us to optimize development costs while upholding high quality and efficiency standards.

This method, along with our dedication to transparency and strategic financial planning, guarantees that the proposal delivers great value for money.