Remittance dApp on Cardano Blockchain

[GENERAL] Name and surname of main applicant

Jose Ramon Velazquez Caceres

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

Individual

[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

No

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

Build a PoC for a Cardano dApp for remittances that offer secure and transparent transactions with smart contracts integration allowing for a cost effective and seamless cross-border money transfer.

[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?

No

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

Deciding not to open-source the development of our remittance dApp serves to safeguard our proprietary technology, maintain our competitive edge, and protect sensitive business information. This approach also helps prevent potential security vulnerabilities and ensures compliance with regulations. Moreover, it allows us to preserve the uniqueness of our features, maintain control over development processes, and effectively manage updates and releases.

[SOLUTION] Please describe your proposed solution

Here's how it might work in more detail:

1. Listing and Fulfillment: The sender lists a remittance request on the platform, specifying the amount to be sent and other necessary details. Fulfillers browse these listings and offer to fulfill them.
2. Agreement: Once a sender accepts a fulfillment offer, an agreement is reached between the sender, the fulfiller, and the platform.
3. Escrow and Smart Contract: The agreed-upon amount of money is placed in escrow, and a smart contract is initiated. The smart contract ensures that the funds will be released to the fulfiller upon successful completion of the transaction.
4. Transaction Processing: The fulfiller proceeds to send the money to the recipient using the specified remittance channels.
5. Fee Calculation: Upon completion of the transaction, the platform calculates the fee owed to the fulfiller. This fee could be either 1% of the transaction amount or half of the smart contract fee.
6. Fee Distribution: The platform deducts its own fees, if any, and distributes the remaining amount to the fulfiller as their earnings.
7. Rating and Feedback: Both parties have the opportunity to rate and provide feedback on the transaction experience, helping to maintain trust and transparency within the platform.

By offering fulfillers a percentage of the transaction amount or the smart contract fee as their earnings, the platform incentivizes participation and provides an additional source of income for users. This model can help attract more fulfillers to the platform, leading to increased liquidity and efficiency in remittance transactions.

In contrast to the exorbitant commissions levied by traditional remittance services, our decentralized remittance dApp built on the Cardano blockchain will offer a significantly reduced commission rate of just 2%. This represents a substantial cost-saving opportunity for individuals sending money to Latin America compared to the average fees of 7% to 10% charged by conventional providers.

By implementing smart contracts within our dApp, we're able to automate and streamline the remittance process, ensuring that the 2% commission fee is charged consistently. Importantly, this fee isn't pocketed by a central authority but is distributed back to the community. Anyone in the community can gain the commission for fulfilling the remittance, thus allowing for income generation opportunities within the community.

Moreover, our commitment to transparency extends to incorporating Know Your Customer (KYC) procedures and user registration, ensuring compliance with regulations and enhancing security. Users can trust that they are receiving a fair and competitive rate for their transactions. With a clear and straightforward fee structure, there are no hidden costs or surprises, empowering users with greater control over their finances and fostering trust in our platform.

Assuming a 5% market penetration of the total remittance volume to Latin America, which amounts to $5 billion annually, and applying our 2% commission rate, the potential revenue generated could reach $5 million annually. This not only sustains the platform but also allows for further development and expansion, ultimately benefiting both users and the broader community.

In summary, by offering a commission rate of just 2%, our Cardano-based remittance dApp provides a cost-effective and efficient alternative to traditional remittance services for individuals sending money to Latin America. Through the innovative use of blockchain technology, smart contracts, and stringent compliance measures, we're not only reducing fees but also paving the way for a more inclusive and accessible financial ecosystem for all.

Technical Solution:

1. Dapp for Customers
2. Mobile dapp. Mobile application so that local fulfillers can fulfill the remittances and send the fiat money to the receivers/beneficiaries
3. Web dapp. Web application for the administration of the platform
4. Blockfrost.
5. Gateway to access the Cardano blockchain
6. Cardano Blockchain
7. Decentralized network where smart contracts are executed to lock or release assets (crypto)

Building Blocks

Below is the communication between the blocks that need to be constructed.

1. Authentication
2. All users must register to access the platform, authentication communicates with the Authentication API, which in turn communicates with the database.
3. Account Status
4. The main section of the system, where clients can view the status of their remittances and fulfillers can see the available remittances yet to be fulfilled with their excepted commissions.
5. Remittances
6. Remittances are created and fulfillers can manage them.

Technology Requirements

1.- Flutter.

The mobile application will be developed with the Dart programming language using Flutter.

2.- React

The creation of the web system will be created with react.

3.- Data base

The database engine that we will use to store the off-chain information is Postgres

4.- Aiken

Smart contracts will be created with Aiken language

Timeline (in spanish)

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

The success of our project will bring significant value to the Cardano Community in several ways. Firstly, by showcasing the practical applications of the Cardano blockchain in addressing real-world challenges, our remittance dApp demonstrates the platform's potential to revolutionize financial services and promote financial inclusion globally. This serves to enhance Cardano's reputation as a leading blockchain solution that offers tangible benefits to individuals and communities.

Secondly, our project contributes to the growth and adoption of the Cardano ecosystem by attracting users and developers to the platform. As more individuals recognize the efficiency, transparency, and cost-effectiveness of our remittance solution, they are likely to explore other applications and services offered on the Cardano blockchain, thereby increasing its user base and ecosystem diversity.

To measure the impact of our project, we will employ both quantitative and qualitative metrics. Quantitatively, we will track key performance indicators such as the volume of remittances processed through our dApp, the number of users onboarded, and the amount of fees saved by our users compared to traditional remittance services. Qualitatively, we will gather feedback from users to assess their satisfaction with the platform, their perceived value of the service, and any suggestions for improvement.

In terms of sharing our outputs and opportunities, we will adopt a multi-faceted approach. Firstly, we will publish regular updates and reports detailing the progress of our project, including key metrics, milestones achieved, and insights gained. These updates will be shared through our website, social media channels, and community forums to engage with stakeholders and solicit feedback.

Additionally, we will actively participate in the Cardano Community through events, meetups, and online forums to share our experiences, lessons learned, and best practices with fellow developers, entrepreneurs, and enthusiasts. By contributing to the collective knowledge and expertise of the Cardano Community, we aim to foster collaboration, innovation, and growth within the ecosystem.

Overall, our project's success will not only benefit users of our remittance dApp but also contribute to the broader Cardano Community by showcasing the platform's capabilities, driving adoption, and fostering collaboration and knowledge sharing. Through transparent reporting and active engagement, we will ensure that the outputs and opportunities arising from our project are accessible and beneficial to all stakeholders in 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?

Capabilities: Currently our team members have been working on completing projects like F7 dTeach dApp Ayllu. The technical aspects of the F7 Grow Latin America project likely involve the development of a decentralized edtech platform using Cardano's blockchain technology. This would include aspects such as smart contracts for secure transactions, decentralized storage for content, identity management, and possibly integration with other blockchain protocols for scalability and interoperability. Additionally, there may be considerations for user interface design, backend infrastructure, and data privacy and security measures.(https://projectcatalyst.io/funds/7/f7-grow-latin-america-grow-cardano/new-d-edtech-platform-for-latam)

Our team is also working on a F11 Blockchain Voting System dApp. The technical aspects of the proposed Cardano blockchain voting system include the development of smart contracts to facilitate secure and transparent voting processes. This involves creating a decentralized network where each participant can securely cast their votes, which are then recorded immutably on the blockchain. Features may include cryptographic protocols for voter authentication, encryption for ballot secrecy, and mechanisms for tallying and auditing votes.(https://projectcatalyst.io/funds/11/cardano-use-cases-concept/blockchain-voting-system).

in terms of fund management are team is dedicated to trasnperency and has worked with F6, F7, F8, and F11 projects managing funds between 5-figure and 6-figure.

Our team also has extensive experience in community engagement and event management is evidenced by our successful organization and hosting of 24 events through our F7 project. These events have provided valuable opportunities for knowledge-sharing, networking, and collaboration within the Cardano community. For more information about our past events and their outcomes, please visit the following link: https://projectcatalyst.io/funds/7/f7-grow-latin-america-grow-cardano/networkingeducation-latam

Our team even successfully completed projects such as the F8 Documentary, show casing Cardano to the world through real world project (https://projectcatalyst.io/funds/8/f8-film-media-fam-creatives-unite/documentary-south-america)

Our remittance dApp project on the Cardano blockchain is poised for success, with a clear pathway to feasibility. By leveraging our technical expertise in blockchain development and smart contract implementation, we're confident in our ability to seamlessly integrate blockchain technology into the remittance process. Through diligent market research, we're identifying opportunities and understanding the regulatory landscape to ensure compliance and meet user needs. Active engagement in the Cardano Community will further bolster our project, fostering support, collaboration, and user adoption. With careful planning and execution, we're poised to deliver a transformative solution that not only showcases Cardano's capabilities but also addresses real-world challenges in the remittance sector.

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

Montha 1-3

Milestone Number : 1

Milestone Title: Planning

Milestone Outputs:

• Scheme of the project, definition of macro tasks and tasks.
• Define detailed system architecture and select technologies.
• Interface design.

Acceptance criteria:

• The project scheme and definition of macro and detailed tasks are clearly established and understandable.
• The system architecture and selected technologies are detailed in documentation and provide a solid foundation for the project's future development.
• The interface design aligns with specified design requirements and is functional for end users.

Evidence of milestone completion:

• Project roadmap.
• Architecture design

Months 4-7

Milestone Number: 2

Milestone Title: Developer

Milestone Outputs:

• Development of the mobile dApp for sender and fulfillers

Acceptance criteria:

• The mobile system must be adjusted to the technology and specifications described in the planning.

Evidence of milestone completion:

• Mobile dApp.

Months 8-11

Milestone Number: 3

Milestone Title: Web Dapp

Milestone Outputs:

• Development of the web dApp for sender and fulfillers
• Creation of the blockchain components and systems

Acceptance criteria:

• The web system must be adjusted to the technology and specifications described in the planning.
• The smart contract and other technical blockchain components and system must be functional

Evidence of milestone completion:

• Web dApp.
• Componente blockchain

Month 12

Milestone Number :4

Milestone Title: Deploy

Milestone Outputs:

• integration and flow of all components of the system (front end, back end, blockchain component, legal)
• Testing

Acceptance criteria:

• Todos los componentes deben estar 100% funcionando.
• La pruebas deben ser satisfactorias

Evidence of milestone completion:

1. Submission of the project close-out report, including all relevant documentation, data, and analysis.

• Remittance dApp fully functional and active

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

Jose Velazquez- Marketing / Legal / Project Management

Jose posses a well connected network within the New York Cardano community with mentors from Milkomedia and Merchify. Jose has legal and governmental connections within South America allowing for project implementation. Jose has Project Managament experience managing funds from F6 Projects, F7 projects, F8 Projects, F11 Projects. Jose is active within the catalyst proposers, catalyst network and latam cardano network within telegram. Jose has facilitated hosting 24 events across Ecuador and Paraguay providing catering, guest speaker logistics, event venues and itineraries as well as managed and completed 5-figure and 6-figure catalyst proposals

linkedin.com/in/jose-velazquez-809665186

David Tacuri- Developer / Lead Full Stack Developer / Smart Contract Developer

David possesses technical expertise in various programming languages and databases. David has experience educating about block and is the CEO of his own blockchain educational game Cardania. David has experience building dApp. David has many years of experience as a developer, coding and managing electoral systems within Ecuador. Currently, David is in the end stages of building a blockchain voting system and a dTeach learn=to-earn modality platform. David is active within the catalyst proposers, catalyst network and latam cardano network within telegram

https://www.linkedin.com/in/david-patricio-tacuri-lema-256a08b1/

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

• Development Costs:
• Project management: 27272 ADA
• Smart Contract Development: 15909 ADA
• Build the smart contract logic and architecture
• Frontend Development: 30680 ADA
• Designing and developing user interfaces for the dApp.
• Backend Development: 12272 ADA
• Building the server-side logic and database architecture.
• Security Audits and Testing:
• Smart Contract Audits: 4525 ADA
• Engaging third-party auditors to review and ensure the security and functionality of smart contracts.
• Functions: 727 ADA
• Marketing and Outreach:
• Community Engagement Events and Meetups: 1510 ADA
• Organizing and sponsoring events to build awareness and engage with the Cardano community.
• Social Media Marketing: 1510 ADA
• Running targeted advertising campaigns and promotions on social media platforms.
• Content Creation (Blogs, Videos, etc.): 1510 ADA
• Producing high-quality content to educate and inform users about the benefits of the remittance dApp.
• Operational Expenses:
• Hosting and Infrastructure: 5,000 ADA
• Procuring and maintaining server infrastructure to host the dApp and ensure scalability and reliability.
• Legal and Compliance: 4525 ADA
• Consulting with legal experts to ensure regulatory compliance and mitigate legal risks.
• Reserve Fund (for Unexpected Expenses): 10,000 ADA
• Setting aside a portion of the budget to address unforeseen expenses or emergencies.

The chart provides the exact numbers and this comprehensive breakdown allocates funds across various aspects of the project explaining it further. It including development, security, marketing, operations, and risk management. It reflects the necessary investments to deliver a robust, secure, and well-promoted remittance dApp on the Cardano blockchain while accounting for potential contingencies. Adjustments can be made based on project priorities, market conditions, and feedback from stakeholders.

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

The cost of the project represents value for money for the Cardano ecosystem by delivering a high-quality, impactful solution that contributes to the ecosystem's growth and adoption. While the costs outlined may appear significant, they are justified by the complexity and scope of the project, as well as the potential benefits it brings to users and the broader community.

Development Costs: The allocation for smart contract, frontend, and backend development reflects the need for skilled professionals to create a reliable and user-friendly dApp. These costs are based on prevailing freelance rates for blockchain and web development services, ensuring that we can attract and retain top talent to deliver a polished and functional product.

Security Audits and Testing: Investing in security audits and penetration testing is essential to mitigate the risk of vulnerabilities and ensure the safety of users' funds and data. While these costs may seem high, they are necessary to uphold the integrity and trustworthiness of the dApp, especially in the context of handling financial transactions.

Marketing and Outreach: The budget for community engagement, social media marketing, and content creation is aimed at raising awareness and driving adoption of the remittance dApp within the Cardano ecosystem. While these costs contribute to the overall project expenses, they are crucial for reaching potential users and establishing a strong presence in the market.

Operational Expenses: Hosting and infrastructure costs, as well as legal and compliance expenses, are essential for ensuring the stability, scalability, and legality of the dApp. While these may seem like overhead costs, they are necessary to maintain the long-term viability and sustainability of the project.

The justification for the costs of the project is based on industry standards, prevailing market rates, and the complexity of the task at hand. Additionally, the potential return on investment (ROI) in terms of user adoption, transaction volume, and ecosystem growth further supports the value proposition of the project.

Overall, while the costs may seem substantial, they are proportional to the value and impact that the remittance dApp aims to deliver. By providing a cost-effective, efficient, and inclusive solution for cross-border money transfers, the project represents value for money by advancing the mission and objectives of the Cardano ecosystem.