Cardano-Powered RWA Tokenization for Real-World Diamonds

[GENERAL] Name and surname of main applicant

Steven Gaertner

[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)

4

[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)

Migrate Tiamonds from Ethereum to Cardano to tokenize and trade real-world diamonds with improved security, lower costs, and enhanced efficiency using Cardano's advanced blockchain capabilities.

[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.”

Our project depends on the following partners:

Diamond Certification Authorities: Partnerships with certification bodies like GIA (Gemological Institute of America) and LCX (Liechtenstein Cryptoassets Exchange - LCX.com) are essential to ensure the authenticity and provenance of tokenized diamonds. These certifications are crucial for maintaining trust and value. Additionally, LCX acts as a physical validator, verifying the physical existence and quality of the diamonds. This role involves legal responsibilities to authenticate and audit the physical diamonds backing the tokens, ensuring they meet the required standards and are free from conflicts.

Insurance Providers: Collaboration with insurance companies, such as Lloyd’s London, to insure the tokenized diamonds against loss or damage. This insurance is essential to provide investor confidence and protect the asset’s value, covering potential risks associated with physical and digital assets.

Security Physical Vault for RWA: Utilization of a secure vault service, like the one provided in Liechtenstein, to store the physical diamonds. This secure storage is critical to ensure the physical safety of the diamonds, thereby protecting the value of the tokenized assets.

[GENERAL] Will your project’s output/s be fully open source?

No

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

NA

[METADATA] SDG rating

To align Tiamonds on Cardano with the United Nations Sustainable Development Goals (SDGs), the SDG Proposer Tool was used to identify relevant goals, subgoals, and key performance indicators:

SDG Goal 8: Decent Work and Economic Growth

• Subgoal 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation.
• Key Performance Indicator: Growth rate of GDP per employed person.
• Relevance: Tiamonds on Cardano supports innovation and economic growth by leveraging blockchain technology for the diamond market, encouraging entrepreneurship and job creation.

SDG Goal 9: Industry, Innovation, and Infrastructure

• Subgoal 9.5: Enhance scientific research, upgrade technological capabilities, and encourage innovation.
• Key Performance Indicator: Research and development expenditure as a proportion of GDP.
• Relevance: Tiamonds on Cardano enhances technological capabilities and encourages innovation in the tokenization of real-world assets, contributing to advancements in blockchain infrastructure.

SDG Goal 12: Responsible Consumption and Production

• Subgoal 12.6: Encourage companies to adopt sustainable practices and integrate sustainability information into their reporting cycle.
• Key Performance Indicator: Number of companies publishing sustainability reports.
• Relevance: Tiamonds on Cardano promotes sustainable practices by ensuring ethical sourcing and transparent provenance of diamonds. Moreover, as tokenized diamonds do not leave the secure vault, there is no transportation or logistics involved, resulting in zero CO2 emissions during trading.

SDG Goal 16: Peace, Justice, and Strong Institutions

• Subgoal 16.6: Develop effective, accountable, and transparent institutions at all levels.
• Key Performance Indicator: Primary government expenditures as a proportion of the original approved budget.
• Relevance: Tiamonds on Cardano enhances transparency and accountability in the diamond market through blockchain technology, fostering trust and reducing fraud.

SDG Goal 17: Partnerships for the Goals

• Subgoal 17.7: Encourage and promote effective public, public-private, and civil society partnerships.
• Key Performance Indicator: Amount of United States dollars committed to public-private partnerships for infrastructure.
• Relevance: Tiamonds on Cardano aims to build effective partnerships with diamond certification authorities, insurance providers, and blockchain developers to ensure the successful migration and operation of the platform.

Diamond Sustainability, Origin, and Fair Trade

• Relevance: Tiamonds on Cardano ensures the tracing of diamond origins and adherence to fair trade practices. By certifying the provenance and ethical sourcing of diamonds, the platform supports sustainable and conflict-free diamond trade.

By integrating these SDGs, Tiamonds on Cardano aims to contribute to economic growth, innovation, sustainable practices, transparent institutions, and effective partnerships, aligning its migration to Cardano with global development priorities.

[SOLUTION] Please describe your proposed solution

How do you perceive the problem you are solving?

The primary problem is the high transaction costs, scalability issues, and security concerns associated with running Tiamonds on the Ethereum network. These issues hinder the efficient tokenization and trading of real-world diamonds, affecting market accessibility and user trust.

What are your reasons for approaching it in the way that you have?

We are migrating Tiamonds to the Cardano blockchain because of its superior scalability, lower transaction fees, and robust security features. Cardano's advanced blockchain capabilities will enhance the efficiency and reliability of the Tiamonds marketplace, making diamond investments more accessible and secure.

Who will your project engage?

Our project will engage a diverse group of stakeholders, including:

• Investors: Individuals interested in diversifying their portfolios with real-world assets like diamonds.
• Diamond Certification Authorities: Bodies like GIA and LCX to ensure the authenticity and provenance of tokenized diamonds.
• Insurance Providers: Companies like Lloyd's London to insure tokenized diamonds, providing added security.
• Cardano Developers: To assist in the integration and development of smart contracts on Cardano.
• Environmental Advocates: By ensuring the sustainable and ethical sourcing of diamonds, and reducing carbon emissions through minimal transportation.

How will you demonstrate or prove your impact?

We will measure our impact through several key metrics:

• Transaction Volume: Tracking the increase in the number and value of diamond transactions on the Cardano blockchain.
• Cost Efficiency: Comparing transaction fees and operational costs before and after migration.
• User Adoption: Monitoring the growth in the number of users and investors on the Tiamonds platform.
• Sustainability Reports: Publishing reports on the environmental benefits achieved through reduced carbon emissions and adherence to ethical sourcing.

What is unique about your solution?

The unique aspect of our solution lies in its ability to tokenize real-world diamonds on a scalable, secure, and cost-efficient blockchain. By leveraging Cardano’s advanced capabilities, we can provide:

• Enhanced Security: Utilizing Cardano’s robust security features to protect diamond investments.
• Lower Costs: Significantly reducing transaction fees compared to Ethereum.
• Environmental Sustainability: Diamonds remain in a secure vault, eliminating the need for transportation and reducing carbon emissions.
• Ethical Assurance: Ensuring the provenance and fair trade of diamonds through certification and auditing.

Who will benefit?

• Investors: Gain access to a secure, efficient, and transparent diamond investment platform.
• Cardano Ecosystem: Demonstrates Cardano’s capability to handle real-world asset tokenization, attracting more users and projects.
• Environmental Advocates: Benefit from reduced carbon emissions due to the elimination of diamond transportation.
• Ethical Consumers: Assurance of conflict-free and ethically sourced diamonds.

Why is this important to Cardano?

This project showcases Cardano’s potential to revolutionize the tokenization of real-world assets, highlighting its capabilities in handling high-value, secure transactions. It will attract new users, increase transaction volumes, and contribute to the overall growth and adoption of the Cardano ecosystem. By demonstrating Cardano’s strengths in a real-world application, we will help position it as a leading blockchain platform for secure and sustainable investments.

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

Value to the Cardano Community

Economic Growth and Innovation:

• By migrating Tiamonds to Cardano, we will showcase the blockchain's capability to handle real-world asset tokenization, specifically for high-value items like diamonds.
• This will attract new investors and users to the Cardano ecosystem, driving economic activity and fostering innovation.

Increased Security and Transparency:

• Utilizing Cardano’s advanced security features will enhance trust among investors by providing a secure platform for trading tokenized diamonds.
• The transparent nature of blockchain technology will ensure that all transactions are visible and verifiable, reducing fraud and increasing confidence in the marketplace.

Environmental and Ethical Impact:

• The elimination of transportation for traded diamonds reduces carbon emissions, contributing to Cardano’s commitment to sustainability.
• Ensuring the ethical sourcing and fair trade of diamonds aligns with global standards and promotes responsible consumption.

Measuring Impact

Quantitative Measures:

1. Transaction Volume and Value: Track the number and total value of diamond transactions on the Cardano blockchain before and after migration.
2. User Growth: Monitor the increase in the number of active users and investors on the Tiamonds platform.
3. Cost Efficiency: Compare transaction fees and operational costs on Cardano versus Ethereum to highlight savings.
4. Environmental Metrics: Measure the reduction in carbon emissions due to the lack of physical transportation for diamonds.

Qualitative Measures:

1. User Feedback: Collect feedback from users and investors regarding their experience and satisfaction with the new platform.
2. Partnerships and Collaborations: Evaluate the quality and number of partnerships formed with certification authorities, insurance providers, and blockchain developers.

Sharing Outputs and Opportunities

Community Engagement:

• Reports and Case Studies: Publish detailed reports and case studies showcasing the project’s progress, impact, and lessons learned.
• Webinars and Workshops: Host webinars and workshops to educate the Cardano community about the benefits and functionalities of the new Tiamonds platform.

Collaborations:

• Partnership Announcements: Publicize partnerships with certification authorities, insurance providers, and developers to highlight the collaborative efforts driving the project.
• Open Forums: Engage with the community through open forums and discussion panels to gather insights and foster collaboration.

Marketing and Outreach:

• Social Media Campaigns: Use social media platforms to share updates, milestones, and success stories, reaching a broad audience within and beyond the Cardano community.
• Industry Conferences: Present the project at blockchain and fintech conferences to attract interest and investment from industry leaders and innovators.

By systematically measuring and sharing our project’s impact, we will demonstrate the tangible benefits of migrating Tiamonds to Cardano, thus enhancing the ecosystem’s appeal and fostering a thriving community of users and developers.

[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?

Existing Capabilities

• Blockchain Expertise: Tiamonds has successfully operated on Ethereum, demonstrating our capability in blockchain technology. Our team includes experienced developers and security experts.
• Strong Partnerships: We have established relationships with GIA, LCX, and Lloyd’s London, ensuring transparency and reliability.
• Operational Excellence: Our project managers have a track record of delivering complex projects on time and within budget. We adhere to stringent security protocols to protect platform integrity.

Validating Feasibility

• Feasibility Studies: We will conduct technical feasibility studies and pilot projects to test migration and platform performance on Cardano.
• Stakeholder Engagement: We will gather feedback from the Cardano community and involve an advisory board of experts to guide the project.

Ensuring Trust and Proper Fund Management

• Transparent Financial Management: We will maintain detailed budgeting and regular financial reporting, including third-party audits. Milestone-based funding releases will ensure proper use of resources.
• Governance and Compliance: We will comply with relevant regulations and Cardano’s governance frameworks. A comprehensive risk management plan will be in place to mitigate potential risks.
• Reporting and Accountability: Regular updates will be provided to the Cardano community through reports and forums, ensuring transparency and stakeholder engagement.

By leveraging our expertise, partnerships, and robust management practices, Tiamonds on Cardano is well-positioned to deliver the project with high levels of trust and accountability, ensuring its success and positive impact on the Cardano ecosystem.

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

Research & Planning (Month 1)

• Tasks:
• Conduct detailed research on Cardano's blockchain capabilities and smart contract functionalities.
• Develop a comprehensive migration strategy for the Tiamonds marketplace.
• Outline technical requirements and initial design for the proof of concept.
• Acceptance Criteria:
• Completion of a detailed project plan and technical specifications document.
• Approval from key stakeholders and advisors.

Design & Initial Prototyping (Month 2)

• Tasks:
• Design the user interface and user experience (UI/UX) for the Cardano-based Tiamonds platform.
• Develop initial prototypes of smart contracts for diamond tokenization.
• Create a basic prototype for integrating with diamond certification authorities (GIA, LCX).
• Acceptance Criteria:
• Completion of UI/UX design and initial smart contract prototypes.
• Basic integration prototype with certification authorities.

Advanced Prototyping (Month 3)

• Tasks:
• Develop more advanced prototypes for smart contracts and platform functionalities.
• Perform initial testing of the prototypes on the Cardano testnet.
• Refine the prototypes based on testing results and stakeholder feedback.
• Acceptance Criteria:
• Advanced prototypes for key platform functionalities.
• Documented testing results and identified improvements.

Presentation Preparation & Cardano Summit (Month 4)

• Tasks:
• Finalize the proof of concept and basic prototypes.
• Prepare a comprehensive presentation summarizing the project’s journey, achievements, and future plans.
• Deliver the presentation at the Cardano Summit in October 2024.
• Acceptance Criteria:
• Completion of the final proof of concept and prototypes.
• Successful presentation at the Cardano Summit with positive feedback from attendees.

These 4 milestones will ensure that the project achieves proof of concept, design research, and basic prototyping within a four-month timeframe, culminating in a presentation at the Cardano Summit in October 2024.

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

Steven Gaertner - Director, Tiamonds

Oversees the overall project direction, strategic decisions, and stakeholder engagement.

Monty Metzger - CEO at LCX and Founder at Tiamonds

Provides leadership and strategic vision, ensuring alignment with LCX’s objectives and compliance with regulatory standards.

Anurag Verma - Director of Technology, LCX

Manages the technical aspects of the project, including integration with LCX systems and overseeing the development of smart contracts.

Rishabh - Business Development

Leads business development efforts, identifying potential partnerships and market opportunities.

Vikash - Project Manager

Manages project timelines, resources, and ensures all milestones are met. Coordinates between different teams to ensure smooth project execution.

Ritesh - Software Developer

Develops the software components required for the project, including backend systems and integration with the Cardano blockchain.

Dharmveer - Blockchain and Backend Developer

Focuses on developing and testing smart contracts on Cardano, ensuring security and efficiency.

Mrinal - UI/UX Designer

Designs the user interface and user experience for the Cardano-based Tiamonds platform, ensuring it is user-friendly and meets project requirements.

Ravinder - QA Tester

Conducts thorough testing of the platform to identify and fix bugs, ensuring the system is robust and reliable.

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

The project has a total budget of 200,000 ADA, with 100,000 ADA funded by Project Catalyst and 100,000 ADA from Tiamonds. The funds will be allocated for research and planning (10,000 ADA), design and initial prototyping (32,000 ADA), advanced prototyping and testing (28,000 ADA), and presentation preparation for the Cardano Summit (28,000 ADA), with a 2,000 ADA contingency fund. Additional resources funded by Tiamonds include smart contract developers, security audits, marketing campaigns, community engagement, and legal services, ensuring comprehensive project support and successful delivery.

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

The project represents value for money by leveraging Cardano's lower transaction costs and advanced blockchain features, significantly reducing operational expenses compared to Ethereum. The combined budget of 200,000 ADA, including additional funding from Tiamonds, ensures comprehensive development and robust security measures, providing a cost-effective solution for the tokenization and trading of real-world diamonds on Cardano.