Cardano Smart Contract Auditing Tool that saves millions of dollars from being stolen

[GENERAL] Name and surname of main applicant

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

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

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

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

Build an auditing tool for Cardano smart contracts to ensure they meet security best practices and adhere to Cardano’s design principles. Every developer can audit their contract using the tool.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

[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?

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

The project will be released under the MIT License, ensuring transparency and granting developers the freedom to use, modify, and distribute the code without restrictions. The code will be hosted on GitHub, providing an open and collaborative platform for engagement with the community.

[METADATA] SDG rating

Our project aligns with the Sustainable Development Goals,

Goal 9: Industry, Innovation, and Infrastructure : Our Project fosters innovation by providing security tools for the developers and the industry.

Goal 16: Peace, Justice, and Strong Institutions : Enhancing the security and reliability of smart contracts on the Cardano blockchain promotes trust, transparency, and accountability within the ecosystem, aligning with the goal of promoting peaceful and inclusive societies.

Goal 17: Partnerships for the Goals : collaboration and partnerships are essential for achieving the SDGs. Our project engages the Cardano community, developers, and stakeholders, fostering collaboration and knowledge sharing to address challenges and drive progress towards sustainable development.

[SOLUTION] Please describe your proposed solution

Problem statement : 

According to the Chainalysis data in 2023 1.1 Billion dollar value is stolen in Defi hacks. From this 28.3 % of attacks happened on smart contract exploitation. In 2024, according to the Certik quarter report 42.6 Million dollar worth of tokens were stolen due to code vulnarability. This data shows how critical the smart contract security sector is. 

With the rapid growth of decentralized finance (DeFi) and smart contract-based applications on the Cardano blockchain, ensuring the security and reliability of smart contracts is very crucial. However, the complexity of smart contract development and the potential for vulnerabilities pose significant risks to users and the ecosystem as a whole.

Traditional auditing methods may not be sufficient to address the unique challenges and requirements of Cardano smart contracts, leading to potential security breaches, financial losses, and damage to the reputation of projects and the Cardano ecosystem. 

Proposed Solution :

The plan we propose is to create an all-inclusive Cardano Smart Contract Auditing Tool in order to tackle these issues. With the aid of this instrument, stakeholders, developers, and auditors will be able to evaluate the security, dependability, and compliance of smart contracts implemented on the Cardano blockchain. Through the integration of advanced auditing features, automatic analysis, and practical insights, the tool will facilitate users in recognizing and efficiently mitigating possible risks and vulnerabilities inside their smart contracts.

Key Features:

• Static Analysis: Find common security vulnerabilities, coding mistakes, and design flaws in smart contract code that could affect the contract's functioning and integrity by doing a static analysis investigation.
• Dynamic Analysis: Perform dynamic analysis by simulating various scenarios and interactions with the smart contract to detect runtime issues, edge cases, and potential attack vectors.
• Automated Testing: Implement automated testing capabilities to verify the correctness and robustness of smart contracts through unit tests, integration tests, and property-based testing.
• Security Guidelines: Provide comprehensive security guidelines, best practices, and recommendations tailored specifically for Cardano smart contract development to help developers adhere to industry standards and mitigate security risks.
• Customizable Rules Engine: Enable users to define custom audit rules, policies, and thresholds based on their specific requirements, regulatory compliance needs, and risk tolerance levels.
• Reporting and Documentation: Generate detailed audit reports, including findings, recommendations, and risk assessments, to facilitate communication and decision-making among stakeholders. Additionally, provide documentation and educational resources to support developers in understanding and addressing identified issues.

In summary, the Cardano Smart Contract Auditing Tool aims to raise the bar for smart contract security and reliability on the Cardano blockchain, empowering developers to build safer, more robust decentralized applications while fostering trust and confidence in the Cardano ecosystem.

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

The Cardano Smart Contract Auditing Tool will have a positive impact on the wider Cardano community in several ways:

• Enhanced Security: By empowering developers to identify and mitigate potential vulnerabilities in their smart contracts, the tool will enhance the overall security and resilience of the Cardano blockchain, reducing the risk of exploits, hacks, and financial losses.
• Increased Confidence: Users, investors, and stakeholders will have increased confidence in the integrity and reliability of Cardano-based decentralized applications, knowing that smart contracts are thoroughly audited and adhere to industry best practices.
• Foster Innovation: By providing developers with tools and resources to build safer and more robust smart contracts, the tool will foster innovation within the Cardano ecosystem, encouraging the development of new and innovative decentralized applications that drive adoption and growth.
• Promote Adoption: A more secure and reliable ecosystem will attract a wider range of users, developers, and projects to Cardano, leading to increased adoption and usage of the platform for various decentralized applications, financial services, and real-world use cases.
• Community Engagement: The availability of a comprehensive auditing tool will foster collaboration, knowledge sharing, and community engagement within the Cardano developer community, encouraging peer review, code contribution, and continuous improvement of smart contract security practices.

Overall, the Cardano Smart Contract Auditing Tool will contribute to the long-term sustainability and success of the Cardano ecosystem by promoting security, confidence, innovation, adoption, and community engagement.

[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?

Our team comprises highly experienced professionals with a proven track record in blockchain development, full-stack development, and specifically, Cardano development. 

I am a full stack blockchain developer with a very good experience in developing decentralized applications (Dapps) and leading projects. I've led numerous blockchain projects, including smart contract auditing Projects. With years of experience in blockchain development, I've worked on numerous projects, from DeFi and DApp development to smart contract auditing, showcasing both my technical expertise and soft skills.

Kidus Abebe, our senior full-stack developer, with his proficiency in frontend and backend development, as demonstrated by his portfolio and GitHub projects will be our UI and backend developer.

Additionally, we will hire two senior full-stack Cardano developers, further strengthening our capabilities in Cardano-specific development.

To ensure high levels of trust and accountability in delivering our project, we will adhere to rigorous development practices, including continuous testing, code reviews, and adherence to industry best practices and standards. Our approach will involve regular progress updates, transparent communication, and collaboration with stakeholders to ensure alignment with project goals and expectations. Furthermore, we will leverage our expertise in agile methodologies to iterate on our approach iteratively, incorporating feedback and validation from users and stakeholders to validate the feasibility of our approach. Overall, our team's collective experience, dedication, and commitment to excellence position us well to deliver the project with the highest levels of trust and accountability.

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

Planning and Design (Duration: 1 month)

Objective:

• Define the scope, objectives, and features of the auditing tool based on research findings and industry best practices.
• Develop a detailed project plan, including timelines, resource allocation, and risk assessment.
• Build the UI/UX of the application

Acceptance Criteria:

• Clearly defined project Scope and features documentation
• Finished UI/UX design
• Project architecture design

Tool Development(Duration: 3 months)

Objective:

• Design and develop the core functionalities of the auditing tool, including static and dynamic analysis capabilities, automated testing frameworks, and customizable audit rules.
• Implement a user-friendly interface for accessing and interacting with the auditing tool, ensuring ease of use and accessibility for developers of all skill levels.
• Conduct rigorous testing and debugging to ensure the reliability, accuracy, and performance of the tool across different environments and scenarios.

Acceptance Criteria:

• Built Website
• Functional Cardano smart contract testing and auditing website

Beta Testing and Feedback(Duration: 1 months)

Objective:

• Launch a beta version of the auditing tool for testing and feedback from the Cardano developer community.
• Gather user feedback, suggestions, and bug reports to identify areas for improvement and refinement of the tool's functionalities, usability, and performance.

Acceptance Criteria:

• Report of the beta testers feedback
• Clearly identified improvement areas report

Tool Refinement, Optimization, Documentation (Duration: 1 months)

Objective:

• Incorporate feedback and insights gathered during beta testing to refine and optimize the auditing tool, addressing any issues, enhancing features, and improving overall user experience.
• Conduct additional testing and validation to ensure that the final version of the tool meets the highest standards of security, reliability, and usability.
• Create comprehensive documentation, tutorials, and educational resources to guide developers in using the auditing tool effectively and understanding its features and capabilities.
• Develop training materials and conduct workshops or webinars to educate the Cardano developer community about smart contract security best practices and how to utilize the auditing tool for their projects.

Acceptance Criteria:

• Fixed website based on identified areas from the testing phase
• Documentation Paper
• Video tutorials of the testing tool

Tool Release and Adoption (Duration: 1 months)

Objective:

• Officially release the auditing tool to the Cardano developer community, making it publicly available for download or access.
• Promote the tool through various channels, including social media, forums, developer communities, and industry events, to encourage adoption and usage among Cardano developers.

Acceptance Criteria:

• Publicly available website for Cardano smart contract testing and auditing
• Promotional data and statistics 

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

1.Fraol Bereket - Senior blockchain developer and lead developer

• LinkedIn: https://www.linkedin.com/in/fraol-bereket-bekele/
• GitHub: https://github.com/fraolb
• Website: https://fraol-portfolio.vercel.app/
• Email: Fraolbereket@gmail.com

2.Kidus Abebe - Senior Full stack developer

• LinkedIn: https://www.linkedin.com/in/kidusabebe101/
• GitHub: https://github.com/kidus101
• Website: https://kidus-portfolio-website-live.vercel.app/
• Email: kidusabebe101@gmail.com

3. Two Senior Full stack Cardano Developers

• We will hire two full stack Cardano developers

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

Milestone 1: Planning and Design

• Project planning and management: 15,000 ADA
• UI/UX design: 10,000 ADA

   - Total: 25,000 ADA

Milestone 2: Tool Development

• Developers cost (4 Developers for 5 months, 3000 ADA per month): 60,000 ADA
• Software development tools and licenses: 20,000 ADA

   - Total: 80,000 ADA

Milestone 3: Testing and Quality Assurance

• Beta testing and feedback gathering: 20,000 ADA
• Testing tools and resources: 10,000 ADA

   - Total: 30,000 ADA

Milestone 4: Tool Refinement, Optimization, Documentation

• Create comprehensive documentation, tutorials: 20,000 ADA
• Develop training materials and conduct workshops: 10,000 ADA

   - Total: 30,000 ADA

Milestone 5: Tool Release and Adoption

• Promote the tool on social media, forums, developer communities, and industry events

   - Total: 20,000 ADA

Overall Total: 185000 ADA

This breakdown ensures that each milestone has sufficient funding to achieve its objectives effectively, while also accounting for contingency and miscellaneous expenses to cover unforeseen costs or adjustments during the project lifecycle.

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

The design cost is around 10000 ADA 4500$(1 ADA ~ 0.45 USD). Which is almost average price to build a quality UI/UX design that functions on multiple platforms. Like Laptops, mobile phones or extra-large screen sizes.

The costs for the developers are 3000ADA which is around 1350$(1 ADA ~ 0.45 USD). This is the average salary of full stack blockchain developers.

For the testing phase we aimed to have around 500 beta testers that participate on testing and giving feedback and receive 40 ADA per person.

Next to that we have building training materials and workshops. We will hire professional content creators to showcase our product in the professional manner in YouTube channel, blog websites and the company's site.

At last, we will promote our project in different social medias and events.