ACCO2 - The end of eco-fraud! An open-source blockchain and science-based framework for carbon accounting (ACCO2) in the steel industry.

[GENERAL] Name and surname of main applicant

Oliver Sonst

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

Entity (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.

Yes

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

A blockchain-based framework that uses the science-based Kaplan mass balance method for carbon accounting. A step towards true sustainability, transparency and standardization in the steel industry.

[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.

MIT License

Copyright (c) [2024] [Stahlo]
Permission is hereby granted, free of charge, to any person obtaining a copy
of this software and associated documentation files (the "Software"), to deal
in the Software without restriction, including without limitation the rights
to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
copies of the Software, and to permit persons to whom the Software is
furnished to do so, subject to the following conditions:
The above copyright notice and this permission notice shall be included in all
copies or substantial portions of the Software.

THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
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 

10 - Reduce inequality within and among countries 

12 - Ensure sustainable consumption and production patterns 

16 - Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels 

[SOLUTION] Please describe your proposed solution.

8% of global CO2-emissions come from steel 

Transform, don’t greenwash! The steel industry's sustainability and fair market shift is hindered by insufficient availability of sustainable steel and self-serving CO2-accounting due to a lack of standardization. ACCO2 is an open-source blockchain and science-based framework on Cardano that introduces a forgery-proof carbon accounting methodology for the steel industry. This is crucial as green steel is scarce in the market and will remain so for at least another 5-15 years. The European Green Deal and other regulatory challenges will require a complete transformation of the giant steel industry.

Transformation is not possible without a mass-balanced process

Mass balancing, the potentially powerful transformation tool on the road to a world of green steel, will only be permissible without a hint of greenwashing but is often abused for exactly that. It is currently the only way to distribute the little green steel available and to create incentives that lead to a higher percentage of “green” steel. This is particularly problematic for smaller companies, as they often do not have the necessary resources or market position to gain access to these limited resources.

There is currently no standardized, transparent, and secure procedure for tracking CO2 emissions along the entire supply chain. Treating CO2 emissions like other accounting parameters could be a practicable solution, but it has not yet left the “academic world”. At the present moment, all this leads to complex and inefficient production and storage logistics. Imagine that sustainable and conventional products have to be produced and stored separately, even though the only difference between them is the emissions they cause.

Steel manufacturers are not sitting tight, using this grey zone and marketing their products as more environmentally friendly than they really are and applying non-transparent and self-made assessment standards.

“The market for fossil-free steel is still in its infancy. Reliable information is crucial for the smooth functioning of this new steel ecosystem.” - Oliver Sonst, CEO Stahlo GmbH 

No greenwashing and accountable transparency

These self-made assessment standards all differ, are not easily reproducible, and only provide a rough standardization of incoming and outgoing goods. The marketing of these methods varies greatly, and the observation period - i.e., when the goods arrive and leave - is crucial. It is clear that the goods cannot be “greener” at goods issue than at goods receipt. The entire warehouse cannot be more environmentally friendly at goods issue than it was at goods receipt.

You can only balance ecological improvements from a specific period and not combine them from different sources and times. Some companies go back to 2008, or balance their reduced flight activity due to Covid on the green share of their goods or include the switch to a few e-cars in their green balance. This is dubious, to say the least.

All of this is further called into question by the vagueness of the Greenhouse Gas Protocol (GHG), which is intended to realize and promote climate-friendly goals:

• Multiple counting of the same emissions: Companies often report the same emissions multiple times, leading to inaccuracies.

• Unreliable Scope 3 emissions: Estimating emissions from upstream and downstream activities (Scope 3) is highly inaccurate due to the complexity of supply chains.

• Greenwashing: Companies selectively present their emissions data to appear in a better light, which undermines the credibility of ESG (Environmental, Social, Governance) reports.

According to the Greenhouse Gas Protocol, both the steel manufacturer and, for example, a car manufacturer must include the steel manufacturer's emissions in their reports. This leads to double counting and makes it difficult to accurately attribute emissions. Without clear standards for carbon management through mass balancing, it is difficult for companies to offer sustainable steel products, which requires significant production changes. It eventually slows down the green progress of the steel industry. This is where the Green Steel Rulebook comes in, using smart contracts to establish sensible and tamper-proof rules for mass balancing practices.

ACCO2 and the Green Steel Rulebook

That's why we want to introduce ACCO2, an open-source blockchain and science-based framework for carbon accounting in the steel industry on the Cardano blockchain. It expands the Greenhouse Gas Protocol with comprehensive and real-world implementation tools based on the independent Green Steel Rulebook. It aims to provide small and large companies with clear guidelines on how the mass balance procedure may be carried out.

The regulatory and compliance guidelines of the Green Steel Rulebook are carefully reviewed and evaluated by an independent committee that will ask for participation of university professors such as Robert Kaplan (Senior Fellow and Marvin Bower Professor of Leadership Development, Emeritus at Harvard Business School. ), European lawyers, regulatory and industry experts such as the Fraunhofer Institute who are familiar with the challenges and the Cardano Community.

"The E-liability system provides a more reliable way of calculating the total pollution from assets under management as a weighted total of the portfolio companies’ end-of-period E-liabilities." - Robert S. Kaplan,
©Harvard Business Review

Cardano blockchain-based framework

Of course, all of this needs to be supported and made verifiable, and this is where the Cardano blockchain-based framework will provide tamper-proof transparency. It will establish the science-based Kaplan mass balance method for carbon accounting (e-liability) on the Cardano blockchain-based framework and execute it with smart contracts.

The process method, including the associated framework, is intended to make a fundamental contribution to the green lead market for the low-emission to emission-free production and distribution of green steel and, after appropriate modification, is able to also potentially serve other energy-intensive sectors such as the chemical, plastics and energy industries. The Cardano blockchain ecosystem can therefore have an extremely large and direct impact on achieving sustainability and the future of humanity! 

"Our proposed approach recognizes the integrated nature of pollution activities across the economy and encourages all businesses, regardless of sector, to take GHG emissions into account in their product design, purchasing, and selling decisions." - Robert S. Kaplan, ©Harvard Business Review

Currently, there is no standardized, transparent, and secure method to track CO2 emissions throughout the entire supply chain and treat them as other financial metrics. Companies wishing to offer sustainable products must prove that all parts of the product are made from sustainably produced steel. Since CO2 is linked to the physical object, this leads to a complex and inefficient production and storage logistics, as sustainable and conventional products must be produced and stored separately, even though they only differ in the emissions they cause.

Example: A manufacturer produces both sustainable and conventional steel products. Although both products have identical material properties, the manufacturer must operate two separate production lines and organize storage accordingly, leading to increased costs and logistical complexity.

Solution: mass balance method according to Kapplan

To meet these challenges, STAHLO and its partners rely on the mass balance method according to Robert S. Kaplan. This method makes it possible to treat CO2-emissions in the same way as other accounting parameters. Companies that purchase steel must include both the steel and the resulting CO2-emissions in their balance sheet. If a company wants to manufacture sustainable products, it buys sustainably produced steel, which means that fewer CO2-emissions are accounted for. The emissions saved can then be allocated to the sustainable products, which enables the joint production of sustainable and conventional products.

E-liability accounting as an extension of the mass balance method

Kaplan's e-liability accounting system integrates modern technologies and cost accounting methods to precisely allocate emissions across the entire value chain. This system solves the problems of the GHG Protocol by:

Accurately measuring emissions

Using chemical and engineering methods to accurately capture emissions.

Avoiding double counting

By allocating emissions to the units produced and transferring them through the supply chain, double counting is avoided.

Reduction of manipulation

Accurate allocation of emissions reduces incentives for greenwashing.

How it works

A company measures its total emissions during a reporting period and allocates them to the units produced. With each material transfer within the supply chain, the corresponding e-liability is passed on to the next actor. This creates a transparent and traceable system that records emissions along the entire value chain.

Advantages of the e-liability system

Transparency

All emissions are precisely recorded and traceably allocated along the entire supply chain.

Reliability

The system offers a high degree of accuracy and reliability in recording emissions, comparable to financial reports.

Efficiency

The precise allocation of emissions enables companies to take more efficient and targeted measures to reduce emissions.

Weaknesses of the mass balance procedure

Although the mass balance method is promising, it harbors risks of fraud and misconduct. Without strict controls and transparency, companies could manipulate emissions figures. In addition, implementing the method requires accurate recording and verification of all emissions along the entire supply chain, which poses a significant logistical challenge. Despite the many advantages, there are also challenges when implementing the e-liability system:

Technical challenges

The precise collection and processing of large amounts of data requires advanced measurement technologies and IT infrastructure.

Regulatory challenges

Clear and standardized reporting requirements and international cooperation are needed to establish the system worldwide.

Manipulation risks

Without strict controls and transparency, companies could continue to attempt to manipulate emissions data.

Development of the Green Steel Rulebook (GSR)

To address these weaknesses, STAHLO is developing the Green Steel Rulebook (GSR) in close cooperation with experts and industry partners. This set of rules is intended to identify all potential points of manipulation and implement appropriate measures to prevent them. The GSR is created in workshops and scientifically based working groups and is intended to meet the practical requirements of industry. It serves as the basis for carbon accounting using the mass balance method and prevents systematic greenwashing.

Technical implementation and framework development

Technical requirements and conditions are defined on the basis of the GSC. A framework with an SAP connection is developed to create a fully automated CO2-balancing system. This system is secured by smart contracts based on the public Cardano blockchain and offered as an open source solution. The blockchain technology ensures that the emissions of each production stage are recorded transparently and verifiably.

Practical implementation of smart contracts

Smart contracts play a crucial role in the implementation of e-liability accounting. For example, a smart contract could automatically update the corresponding e-liabilities for each material transfer within the supply chain. When a steel producer buys sustainably produced steel, the reduced carbon footprint is automatically recorded and integrated into the system. This transparency prevents manipulation and ensures that CO2-emissions are accurately tracked and accounted for.

Another use case for smart contracts is monitoring compliance with the rules set out in the GSC. A smart contract could automatically check whether all participants in the supply chain are reporting their emissions data correctly and in full. In the event of irregularities, the smart contract could trigger sanctions or generate reports to the relevant authorities.

Integration of the entire supply chain and transferability

The first proof of concept (PoC) is being developed in the steel industry. The successful tamper-proof documentation of the CO2-mass balancing process with smart contracts can then - with carefully controlled modification - be transferred to other economic and industrial sectors.

Impact and validation

The impact of the project is demonstrated by the publication of a scientific paper and the implementation of a PoC at STAHLO. This enables the measurability and extrapolation of the impact. The result will be a robust set of rules and a smart-contract-supported technical system that can be validated and further developed by others.

The integration of Kapplan's theses on e-liability balancing and the use of blockchain technology and smart contracts will create a transparent, verifiable and tamper-proof system. This not only promotes sustainability in the steel industry, but can also serve as a model for other industries.

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

The steel industry’s sustainability challenge presents a unique opportunity for the Cardano community. By integrating advanced CO2 accounting systems with Cardano's blockchain technology, we can create a transparent, efficient, and scalable solution. This integration not only addresses critical environmental issues but also significantly enhances the Cardano ecosystem.

Significant Increase in Network Activity

The integration of the steel industry's processes with the Cardano blockchain will lead to substantial transaction volumes. Given that the steel industry is one of the largest globally, this participation will enhance network credibility and stimulate ecosystem growth. The high transaction volumes will drive wider adoption, create more trust, and attract more people and companies to the Cardano community.

Contribution to Decarbonization

The Cardano community has the potential to make a substantial impact on climate change. By leveraging Cardano’s energy-efficient blockchain technology, our project promotes sustainable practices within the steel industry. This will draw significant attention to Cardano's efforts and position the community as a leader in climate action.

Cardano as Infrastructure in Traditional Industry

Our project demonstrates Cardano’s capability to address real-world challenges in traditional industries. Integrating Cardano with the steel industry enhances the blockchain’s credibility and adoption. This serves as a strong use case for Cardano’s applicability in other sectors, thereby broadening its real-world applications.

Blueprint for Decentralized Industrial Projects

This project serves as a blueprint for implementing decentralized solutions in large industrial contexts. It can inspire confidence in Cardano's capabilities and encourage other industries to undertake similar initiatives. Standardizing approaches within the Cardano ecosystem will make it easier for new projects to replicate success and avoid common pitfalls, fostering a culture of innovation and collaboration.

Quantitative Measures:

Transaction Volumes

Monitor the increase in transaction volumes on the Cardano blockchain as the steel industry integrates its processes.

CO2 Reductions

Measure the reduction in CO2 emissions achieved through the adoption of our CO2 accounting system.

Adoption Rates

Track the number of companies and industries adopting the Cardano-based solution.

Qualitative Measures:

Industry Feedback

Collect feedback from industry stakeholders to assess the system's effectiveness and user satisfaction.

Case Studies

Develop case studies demonstrating successful implementation and impact on sustainability goals.

Academic and Industry Recognition

Monitor publications and recognitions from academic and industry bodies.

Open-Source Framework

We will release the developed framework as an open-source solution. This allows other projects to leverage our work, fostering innovation and collaboration within the Cardano community.

Result Publications

The results and findings of our project will be documented and published. This will contribute to the broader body of knowledge and highlight Cardano’s role in advancing sustainable industrial practices.

Industry Partnerships

By forming strategic partnerships with other industries, we will extend the reach of our solution, showcasing Cardano’s applicability and benefits across various sectors.

Our project has the potential to bring significant value to the Cardano community by enhancing network activity, contributing to decarbonization, establishing Cardano as a viable infrastructure for traditional industries, and providing a blueprint for decentralized industrial projects. By measuring our impact and actively sharing our outputs and opportunities, we aim to foster a culture of innovation, collaboration, and sustainability within the Cardano ecosystem.

[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?

Capable with a visionary team

Stahlo is one of the most advanced and largest mill-independent steel service centres in Germany that is driven by distributing the maximum amount of decarbonized steel available. Since years the steel service company integrates and raises awareness for transparency tools against greenwashing in a market that still needs to rely on mass balance. Disruptive Elements is one of the earliest blockchain adopters, which uses its impeccable technology and visionary expertise for people-centered initiatives such as Welthungerhilfe, but also clients like Volkswagen AG and Condé Nast.
Mapmovingstory has been establishing new tech communications and storytelling for years, strategically positioning large industrial companies such as Linde, Ottobock, Stahlo, Woco, BASF in the market of today and tomorrow.

Together with the cooperation partners Disruptive Elements and mapmovingstory, the merger of the three companies for ACCO2 forms a congenial team that has set itself the task of successfully combating greenwashing with effective and realistic digital solutions that are brought to life on the Cardano blockchain framework. The Green Steel Rulebook will include white paper research and summarize the results in clear and groundbreaking guidelines that will enable the steel industry to shape the environment according to sustainable and humanistic principles. The advisory board includes Robert S. Kaplan from…, the Fraunhofer Institute (Stahlo is already working with the institute on sustainability-oriented projects through the Friedhelm Loh Group) and further persons form the extensive network that is guaranteed by industrial player Stahlo/FLG Group and team.

All participating applicants are in business for at least two years. Companies can be easily verified by the german commercial office.

Stahlservice GmbH & Co. KG

https://www.stahlo.de/en

https://www.stahlo.de/en/company-group

Stahlo is one of the most advanced and largest mill-independent steel service centres in Germany. Its offer consists of a fully comprehensive portfolio for all key materials in the sheet metal market. At its locations in Dillenburg, Gera and Nordhausen, the company custom-manufactures slitted coils, cut-to-size and standard sheets, blanks and contoured blanks in all standard grades, up to and including high and ultra-high-strengths.

Stahlo was founded in 1983 in Dillenburg, Germany, and is a member of the Friedhelm Loh Group. The Group is now active worldwide with 12 production sites and 94 international subsidiaries. The Friedhelm Loh Group employs 11,600 people and generated revenues of approximately Euro2.5 billion in 2021. In 2021, the family-run business was named one of Germany’s leading employers by the Top Employer Institute, for the twelfth year running.

Under its current CEO, Oliver Sonst, Stahlo, as an industry pioneer, continues to drive supply chain transparency and secure certificate management to strengthen trust in the new “green” supply chain ecosystem.

“Being an independent steel service centre puts us in an ideal position to satisfy the need for reliable information” - Oliver Sonst, CEO Stahlo

With the “SteelGate” application, presented at Euroblech 2022, Stahlo stirred up the somewhat secretive steel industry with a solution for implementing carbon tracking along the steel supply chain digitally, transparently and above all securely. The demonstrator showed how blockchain technology can be used and presented its capabilities and possibilities.

Stahlo was one of the first in the steel industry to address the challenges of green steel, developing a classification label to classify the emissions contained in steel coils and expanding this into its current Stahlo SteelCompass, which drives customer portfolios to adapt to green steel. Stahlo has a global network with the biggest players in the steel industry, a solid financial backing from the extremely strong FLG Group and is driven by a successful CEO’s vision for a green future.

Disruptive Elements GmbH

https://disruptive-elements.com/

Disruptive Elements GmbH is a digital agency and venture builder at the forefront of AI, ED-TECH, Web 3 and blockchain technologies. We thrive on collaborating with NGOs, leveraging our expertise to drive impactful initiatives in this realm.

Composed of visionaries, developers, and project implementers, we empower decision-makers and businesses to navigate the digital landscape by providing comprehensive (IT) methodologies and implementation expertise, leading to market-ready solutions.

Here is a selection of projects that Disruptive Elements GmbH has successfully implemented in the field of innovation:

Stahlo Stahlservice GmbH & Co.KG:

Development of a CO2-tracking system for green steel supply chains. The blockchain-based application ensures traceability and authenticity of green steel throughout the entire steel supply chain, from the steel mill to the end product.

Dibooq: The Network for Vacation Rentals:

Development of a blockchain-based notarial layer for the DiBooq platform. This is the first real-time occupancy calendar for vacation rentals, providing agencies and owners with access to current calendar and booking data at any time.

SmartPlaces:

Strategic consulting and whitepaper development for the startup Smart Places. Smart Places incentivizes real social interactions. By introducing "Connect2Earn," users are rewarded for interacting with others in the ecosystem. Through the use of blockchain technology, data can be monetized in a decentralized zero-knowledge environment.

Welthungerhilfe:

We supported #innolab2023TechEdition by Welthungerhilfe, focusing on Blockchain. Collaborating with a team from Bangladesh, we developed Zero Hunger solutions. After online and fieldwork, a 3-day Berlin sprint, and the Bonn #SharkTankEvent, we showcased a peer-to-peer #priceOracle prototype. Thanks to our team and the Cardano Foundation, we moved closer to a hunger-free future.

In addition to the aforementioned clients, our portfolio includes esteemed companies such as:

Volkswagen AG

HERE Technologies, ADAC, Continental in the field of mobility and autonomous driving

Roland Berger in the area of agile project development and prototyping (Bank of the Future LBB / ADAC,)

Condé Nast, Funke Mediengruppe, and RTV media solutions GmbH

In the areas of digital publishing and digital product development

United Soft Media (USM)

In the field of entertainment / game development

Sparwelt AG, remind me GmbH

In the areas of e-commerce and FinTech

Teletax GmbH, UBS AG, Sparkassenstiftung, and LearnIO

In the area of learning portal, blended learning

Sparwelt, Stahlo, L | EARN

In the area of blockchain and AI

Hamburger Volksbank

In the area of Data Unios

MapMovingStory GmbH

https://www.mapmovingstory.com/de

Mapmovingstory has been establishing new tech communications and storytelling for years, strategically positioning large industrial companies such as Linde, Ottobock, Stahlo, Woco, BASF in the market of today and tomorrow.

Robin Hellmann Consulting

https://www.hey-robin.com

Robin holds a Master of Science in Mechanical Engineering from RWTH Aachen, with a strong focus on sustainability and innovation throughout his academic and professional journey. His career has steadily evolved towards an innovation-driven environment, excelling as a freelance engineer and consultant specializing in Web3 and AI projects.

In his role as a Project Manager and Product Owner, Robin brings a hands-on approach to project implementation, ensuring success from conception to completion. He is also an experienced workshop leader, conducting innovation and AI workshops to foster creativity and technological advancement.

Robin has successfully led projects in diverse fields, from DeFi to social networks within the Web3 sphere, and possesses extensive experience in fundraising and tokenomics design. His commitment to impactful projects extends to close collaborations with NGOs like Welthungerhilfe and WWF, leveraging innovation to create positive outcomes for communities and the environment.

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

Onboarding to Cardano Catalyst, Problem and Market Analysis

Introduction

This milestone focuses on familiarizing the team with the Cardano Catalyst system and conducting a comprehensive problem and market analysis. The goal is to understand the challenges in the green steel industry and the market needs for sustainable steel products.

Milestone Outputs:

• Team trained on Cardano Catalyst.
• Detailed problem analysis report.
• Mapping of existing solutions and frameworks.
• Comprehensive market analysis report.

Acceptance Criteria:

• All team members complete an internal Cardano Catalyst training program.
• Problem analysis identifies key challenges and stakeholder needs.
• Market analysis includes competitor analysis and market demand assessment.

Evidence of Milestone Completion:

• Training certificates or completion reports for the team.
• Published problem analysis report reviewed by stakeholders.
• Market analysis report approved by project leads.

Development, Validation, and Certification of the Green Steel Rulebook

Introduction

This milestone aims to develop the Green Steel Rulebook, which will provide comprehensive guidelines for sustainable practices in the steel industry. The rulebook will be validated and certified by independent experts, like NGOs and the Cardano Community.

Milestone Outputs:

• Draft of the Green Steel Rulebook.
• Feedback and validation from industry experts and Community .
• Certification of the rulebook by an independent authority (e.g., Fraunhofer Institute).

Acceptance Criteria:

• Rulebook draft covers all necessary guidelines and standards for sustainable steel production.
• Rulebook validated through multiple feedback sessions with industry experts.
• Certification from an independent authority confirming the rulebook's validity and applicability.

Evidence of Milestone Completion:

• Finalized Green Steel Rulebook document.
• Documentation of feedback sessions and validations.
• Certification document from the independent authority.

GSR Framework and System Architecture

Introduction

This milestone involves translating the Green Steel Rulebook into technical requirements, equations, and system architecture. The goal is to create a cohesive system design that integrates all rules and logic.

Milestone Outputs:

• Technical requirements, such as algorithm specifications and pseudocode, based on the guidelines of the Green Steel Rulebook.
• System architecture design.
• Initial prototype to validate the architecture.

Acceptance Criteria:

• Technical specifications are comprehensive and align with the rulebook guidelines.
• System architecture covers all aspects of the integrated system.
• Prototype successfully demonstrates the feasibility of the architecture.

Evidence of Milestone Completion:

• Published technical specification document.
• Approved system architecture diagrams and documentation.
• Prototype testing reports demonstrating successful initial validation.

Development, Implementation, and Audit of Smart Contracts

Introduction

This milestone focuses on developing and implementing smart contracts to enforce the rules defined in the Green Steel Rulebook. The smart contracts will then undergo rigorous auditing.

Milestone Outputs:

• Developed smart contracts.
• Integrated smart contracts into the system architecture.
• Completed audit reports.

Acceptance Criteria:

• Smart contracts implement all specified rules and logic.
• Integration tests confirm seamless interaction between smart contracts and backend systems.
• Audits identify no critical vulnerabilities or issues.

Evidence of Milestone Completion:

• Source code repository with smart contracts.
• Integration testing documentation and results.
• Audit reports from internal and external auditors.

MVP and Testing

Introduction

This milestone involves the assembly of the system components into a Minimum Viable Product (MVP) and conducting extensive testing to ensure functionality and security.

Milestone Outputs:

• Fully functional MVP.
• User interface for interacting with the MVP.
• Comprehensive testing reports.

Acceptance Criteria:

• MVP demonstrates all core functionalities as defined in the specifications.
• User interface is intuitive and user-friendly.
• Testing covers all critical scenarios and identifies no major issues.

Evidence of Milestone Completion:

• Deployed MVP on a test environment.
• User interface design and usability testing reports.
• Comprehensive testing documentation and issue resolution logs.

Feedback, Review, and Report

Introduction

The final milestone aims to collect feedback from industry partners and users, review the system, and prepare a comprehensive report to guide further development and publication.

Milestone Outputs:

• Collected feedback and review notes.
• Final report summarizing the project and its outcomes.
• Published report paper.

Acceptance Criteria:

• Feedback is collected from a representative sample of industry partners and users.
• Final report includes detailed analysis and recommendations for future development.

Evidence of Milestone Completion:

• Feedback and review documentation.
• Approved final report.
• Video milestone.

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

Disclaimer: None of the applicants has been funded by Cardano Catalyst thus far.

Oliver Sonst / CEO Stahlo GmbH

https://www.linkedin.com/in/oliver-sonst-trustedexcellence/

Oliver is an experienced CEO with a 25-year successful and proven track record in the automotive supply and steel industry. As a visionary leader, he has shaped Stahlo into a company synonymous with trusted excellence. Oliver has a degree in mechanical engineering and is passionate about innovation and sustainability in the steel industry. He is committed to securing Stahlo's position as a leading supplier of green steel and ensuring that the company remains at the forefront of the industry's transition to a greener future.

Steffen Bittner / Green Steel Business Development Stahlo GmbH

https://de.linkedin.com/in/steffen-bittner-181598225

With over 10 years of experience in the steel industry and his degree in industrial engineering Steffen has made the transition from automotive sales to business development. In his position at Stahlo Stahl-Stahlservice GmbH & Co KG he is focusing on sustainability, carbon footprint and the development of the accompanying customer services. According to him transparence and responsibility are the enabler for the upcoming transformation.

Jürgen Kleeberger / Founder Disruptive Elements GmbH

https://www.linkedin.com/in/j%C3%BCrgen-kleeberger-39449511/

As a strategic thinker and digital product developer, Jürgen Kleeberger successfully digital enhanced industry sectors in different areas, e.g. logistics, media publishing, mobility services etc. Focusing on emerging technologies and having a deep understanding for the companies needs, he was in charge of digitizing communication processes and developing digital product strategies. His ongoing passion for current technology trends and management methods enables him to help companies implement solutions at the pulse of time and to meet the challenges of digital transformation that they face. In short, he supports decision-makers to lead digital initiatives with agile methods and implementation expertise to provide market-ready solutions.

Robin Hellmann / Founder Robin Hellmann Consulting

https://www.linkedin.com/in/robin-hellmann-2927b529b/

Robin possesses deep expertise in innovative techniques and sustainability. After successfully obtaining a Master of Science in Industrial Engineering from the prestigious RWTH Aachen University, he dedicated himself to projects in the innovation environment, building expertise in areas such as blockchain, AI, and educational technology. He offers consulting, project management, and conceptual work for these sectors. In his work with large NGOs, like WWF Germany, as well as industrial partners, he has proven himself and is always seeking new challenges to make the world a slightly better place.

Rosbeh Ghobarkar / Co-Founder Mapmovingstory - CDO Chief digital officer 

https://www.linkedin.com/in/rosbehghobarkar/

For over 25 years, I have successfully executed more than 300 diverse digital projects, acquiring a wide range of expertise. My educational journey spans various degrees in Design, Communications Sciences, and Leadership. From producing websites to developing interactive applications for web and mobile devices, as well as advising on startups in the Web 3.0 arena, my experience is extensive. Collaborating closely with experts, I have overseen projects for a diverse clientele, ranging from universities to end products. I am particularly fascinated by the digital transformation towards ESG in industrial enterprises. Together with my partner Matthias Held, I have successfully implemented projects in this field, pioneering new approaches. As an avid enthusiast of tokens and cryptocurrencies, I firmly believe that hardware technology, LLM, Big Data, and especially the capabilities of Web 3.0 represented by Bitcoin, Ethereum, XRP, and Cardano, are indispensable for driving sustainable digital transformation. I am extremely enthusiastic about the Cardano project and look forward to being part of the "No Greenwashing with Cardano" group. My passion and expertise make me a valuable addition to your team.

Matthias Held / Co-Founder Mapmovingstory - CSO Chief strategic officer

https://www.linkedin.com/in/matthias-held-467b4221/

Strategy and brand development. Well over 20 years consulting companies during transformation with trust culture, positioning, personal and company ambition measurement. Business development with merging recommendation and research of corporate companies (and segments) with StartUps. Servicing the automotive supplier industries (SaarGummi Group, Woco Group), health industries (Ottobock, Zometa), real estate (Secret Escapes, Trump organization), energy sector (Linde), steel industries (Stahlo). Prior to this servicing media partners with brand positioning, storytelling, content development, tv branding & film productions. Production of btob communication tools for the company Ottobock. Employer branding consulting and production of marketing tools for employer branding implementation (social media, web, fairs, events).

Dominik Fiolka / CTO Disruptive Elements GmbH

Dominik Fiolka (Development) is a seasoned full-stack developer who brings extensive experience to his role as CTO and Architect at Disruptive Elements. With a background in full-stack development, Dominik has been instrumental in implementing a wide range of projects tailored to meet customer needs. His solution-oriented and pragmatic approach ensures that projects are delivered efficiently and effectively. Dominik has contributed his expertise to various projects, including those for renowned clients such as HERE, Volkswagen, L|EARN, and WIRED Germany. His dedication to delivering high-quality solutions that meet client expectations makes him an invaluable asset to the development team.

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

The following cost breakdown provides a detailed overview of the budget allocated for each major milestone in the project. Each milestone represents a critical phase, ensuring that the project progresses smoothly from initial onboarding to final delivery.

The budget is meticulously planned to cover all necessary activities, including training, development, testing, certification, and marketing. By breaking down the costs, we aim to demonstrate the careful consideration given to every aspect of the project, ensuring transparency and justifying the investments made at each stage. This structured approach ensures that every euro spent is accounted for and contributes to the overall success and sustainability of the project.

Furthermore, the costs have been very conservatively calculated to ensure prudent financial management.

Disclaimer: Additional monetary funds can be provided by Stahlo GmbH under the right conditions and when necessary.

Milestone 1: Onboarding to Cardano Catalyst, Problem Analysis and Market Analysis

Description: The first milestone involves preparing the team for the Cardano Catalyst project. This includes a comprehensive introduction and training of the team members to ensure everyone has a unified understanding of the project. Following this, a detailed problem analysis is conducted through interviews and surveys to identify existing challenges. Finally, a market analysis is carried out to examine the market for similar projects and determine market needs. All findings are documented in a comprehensive report.

Cost Justification: Training and onboarding are essential to create a common knowledge base and ensure effective collaboration. Problem analysis and market analysis are necessary to make informed decisions and secure project success.

Individual Items:

• Onboarding and training: 5 days
• Problem analysis: 12 days
• Market analysis: 7 days
• Documentation: 3 days

Total Cost: 67,500 ADA

Milestone 2: Creation, Validation, and Certification of the Green Steel Rulebook (GSR)

Description: The second milestone focuses on the development of the Green Steel Rulebook (GSR). This process starts with concept creation, followed by detailed content development that defines guidelines and requirements for sustainable steel production. The contents are then validated and certified to ensure compliance with the highest standards. The milestone concludes with the publication of the GSR to ensure transparency and acceptance among stakeholders.

Cost Justification: The development and certification of the GSR are crucial to establish clear and binding standards for sustainable steel production. This strengthens credibility and promotes adherence to environmentally friendly practices.

Individual Items:

• Concept creation: 25 days
• Content development: 25 days
• Validation and certification: 15 days
• Publication: 5 days

Total Cost: 175,000 ADA

Milestone 3: GSR Framework and System Architecture

Description: In the third milestone, the Green Steel Rules (GSR) are implemented into a technical framework. This includes developing the system architecture, which forms the backbone of the project. The architecture is thoroughly validated to ensure it is robust and efficient. A prototype is developed to test the functionality and integrity of the system architecture and identify potential weaknesses early on.

Cost Justification: A well-thought-out and validated system architecture is the heart of any successful software solution. This milestone ensures that the technical foundations are solid and that the project is sustainable in the long term.

Individual Items:

• Technical implementation of the rules: 20 days
• System architecture development: 20 days
• Architecture validation: 10 days
• Prototyping: 15 days

Total Cost: 162,500 ADA

Milestone 4: Development, Implementation, and Testing of Smart Contracts

Description: In the fourth milestone, smart contracts are developed and integrated into the system architecture. These smart contracts are essential for automation and ensuring rule compliance. Internal and external audits are conducted to guarantee the security and reliability of the smart contracts. Comprehensive testing ensures that the smart contracts function flawlessly and have no vulnerabilities.

Cost Justification: The development and implementation of smart contracts are a central part of the project. Audits and tests are essential to ensure the integrity and security of the solution, which enhances the trust of users and stakeholders.

Individual Items:

• Smart contract development: 35 days
• Integration into the system architecture: 25 days
• Auditing: 15 days
• Testing: 15 days

Total Cost: 225,000 ADA

Milestone 5: MVP and Testing

Description: This milestone focuses on the development of a Minimum Viable Product (MVP) and its comprehensive testing. The MVP is an early version of the product with just enough features to satisfy initial users and gather feedback. After development, the MVP undergoes extensive testing to ensure it is stable and user-friendly.

Cost Justification: Developing an MVP allows for early feedback from users and helps to further develop the product based on real requirements. This reduces the risk of later corrections and increases the chances of the final product's success.

Individual Items:

• MVP development: 50 days
• Testing: 20 days

Total Cost: 175,000 ADA

Final Milestone: Feedback, Review, and Reporting

Description: In the final milestone, comprehensive feedback sessions and reviews are conducted. Necessary adjustments are made based on the collected feedback. Finally, a detailed report is created that documents the results and the entire project process. This report serves as an important foundation for future projects and as evidence of the work performed.

Cost Justification: Comprehensive feedback and thorough reviews are crucial to evaluate the project and identify areas for improvement. The final report documents the project results and provides transparency to stakeholders.

Individual Items:

• Feedback and review: 30 days
• Report creation: 20 days

Total Cost: 125,000 ADA

Branding & Communication

Description: This milestone involves developing a marketing strategy to maximize the project's reach. A major focus is on communication with industry partners to foster collaborations and increase the project's visibility. This includes creating marketing materials, maintaining contacts, and participating in relevant events.

Cost Justification: An effective marketing strategy and strong communication with industry partners are crucial to position the project successfully and build long-term partnerships.

Individual Items:

• Development of the marketing strategy: 50 days
• Communication with industry partners: 50 days

Total Cost: 250,000 ADA

Consultants, Certifications, and Audits

Disclaimer: The costs for external services are taken into account here. With costs of 325,000 ADA and a total budget of 1,505,000 ADA (22%), we comply with the requirement of 30% external costs.

Description: This milestone includes consulting with experts in the fields of law, accounting, and technology, certifying the Green Steel Rulebook (GSR) by specialist bodies, and conducting audits of the smart contracts. These measures ensure that the project meets the highest legal and technical standards.

Cost Justification: Consulting with experienced experts is necessary to ensure that the project meets all relevant requirements. Certifications and audits are essential to guarantee the quality and security of the project and build trust among stakeholders.

Individual Items:

• Consultants: 20 days
• Certifications: 10 days
• Audits: 1 day

Total Cost: 325,000 ADA

Total Project Budget

Total Budget: 1,505,000 ADA

The detailed cost items and descriptions of the individual milestones provide transparency and show that the expenses are well-thought-out and justified. Each milestone covers an important aspect of the project and significantly contributes to the overall success.

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

To calculate the project costs, estimates were based on the milestones to be achieved, the involved stakeholders, and the expected workloads. The daily rates correspond to the reduced rates (for impact projects) of the stakeholders involved in the project within the European region. All companies participating in the project are based in Germany and are subject to the given cost structures.

A justification for the calculated costs can be found in the cost breakdown section. This section aims to highlight the positive effects on the Cardano ecosystem and the Cardano community, which justify the project costs.

Enhancing Network Activity and Credibility

High Transaction Volumes

The steel industry, one of the largest globally, will significantly increase transaction volumes on the Cardano blockchain. Each process within integrated companies, such as CO2-emission balancing, will interact with the blockchain, driving up network activity. This surge in transactions will enhance the credibility of the Cardano network and stimulate ecosystem growth.

Wider Adoption

As a traditional industry adopts Cardano's solutions, it will attract more companies and individuals to the ecosystem. The increased trust and credibility will encourage further adoption of Cardano's blockchain, fostering a larger and more robust community.

Contribution to Decarbonization Efforts

Climate Impact

The Cardano community has a strong commitment to sustainability. By promoting the use of Cardano's energy-efficient blockchain technology for CO2 tracking in the steel industry, the project supports global decarbonization efforts. This alignment with climate goals will draw positive attention to Cardano's contributions to sustainability, enhancing its reputation and appeal.

Real-World Application and Integration

Infrastructure for Traditional Industries

Demonstrating Cardano's capability to address real-world challenges enhances the blockchain's credibility and adoption. This project serves as a proof-of-concept that Cardano can provide practical, scalable solutions for traditional industries, encouraging further integrations and use cases.

Blueprint for Decentralized Industrial Projects

The project will serve as a model for implementing decentralized solutions in other sectors. It showcases Cardano's ability to handle complex industrial needs, inspiring confidence in its capabilities and encouraging other industries to undertake similar initiatives.

Measurable Impact and Knowledge Sharing

Quantitative and Qualitative Measures

The project’s impact will be measured through increased transaction volumes, reductions in CO2 emissions, and adoption rates. Qualitative feedback from industry stakeholders and case studies will further demonstrate its success. This dual approach ensures comprehensive assessment and continuous improvement.

Open-Source Framework and Publications

By releasing the developed framework as an open-source solution, the project fosters innovation and collaboration within the Cardano community. Publications and community interactions will share insights and successes, promoting transparency and collective growth.

Strategic Partnerships

Forming partnerships with other industries extends the project's reach, showcasing Cardano’s versatility and benefits across various sectors. This cross-industry collaboration strengthens the overall ecosystem and highlights Cardano's real-world applicability.

Conclusion

Investing in the integration of blockchain technology with the steel industry represents excellent value for the Cardano ecosystem. The project enhances network activity, supports decarbonization, demonstrates real-world applicability, and provides a replicable model for other industries. By measuring impact and sharing knowledge openly, the project ensures sustained growth and innovation within the Cardano community, justifying its cost and promising significant returns.