Enterprise-Grade B2B Payments in ₳ - Bridging the Gap Between Coinbase and Oracle NetSuite with Bitwave

[GENERAL] Name and surname of main applicant

Alberto De Pablo

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

Entity (Incorporated)

[GENERAL] Co-proposers and additional applicants

Jim Thompson, VP of Sales & Partnerships 

• Linkedin
• Email: Jim.Thompson@bitwave.io

[GENERAL] Requested funds in ada

150000

[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)

Bitwave's + Coinbase: Facilitating compliant global B2B payments for early-stage & Fortune 500 companies, streamlining bulk payments, eliminating privacy concerns & auto-sync into Oracle Netsuite.

[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.”

Coinbase is our custodian partner for Bitwave Payments. Today, Bitwave Payments supports these tokens: USDC, BTC, MATIC, and ETH. Unfortunately, ₳ is not yet supported. 

This proposal aims to develop a user-friendly interface for ₳ support on the Bitwave platform and to promote adoption through enterprise incentives within the ecosystem. Bitwave can begin integration, and our partner, Coinbase, should not delay our product roadmap.

[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

Data Integrity: SOC 1 Type I & SOC 2 Type I Certification 

Bitwave's code will remain private to comply with enterprise information security standards. The company has achieved SOC 1 Type I and II & SOC 2 Type I and II certification for enterprise data integrity. These certifications validate Bitwave as a trusted source of financial data for public auditors. As a result, the audit process for publicly traded enterprises and Cardano ecosystem projects is streamlined.

[METADATA] SDG rating

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

[SOLUTION] Please describe your proposed solution

Enterprise-Grade Payments via Coinbase Prime [Custodian Integration & Partnership]

Payment Adoption Challenges 

Bitwave aims to solve the fundamental issues of enterprise payments on blockchain networks, including Cardano. It achieves this by providing stability, user-friendliness, easy integration with traditional payment systems, compliance assistance, and effective cross-border transaction capabilities. 

By solving these challenges, Bitwave enhances Cardano's usefulness and appeal for business transactions. This, in turn, promotes wider acceptance and facilitates smoother operations for those who use the Cardano ecosystem. 

Here's how Bitwave's features solve specific challenges:

ERP API Connectivity

Challenge Solved:

• Manual bill and invoice closure is time-consuming and prone to errors. Traditional processes require significant manual data entry and reconciliation efforts.

Bitwave Solution:

• Bitwave automates the closure process in the ERP/General Ledger system, generating journal entries automatically for simplified reporting. This automation eliminates tedious data entry and enhances reporting accuracy.

Effortless Enterprise Approval Workflows

Challenge Solved:

• Approval payment processes can be cumbersome for large enterprises (e.g., multinational corporations and financial institutions), especially in environments that require strict compliance and control. Manual approval workflows are prone to errors and can slow down financial operations.

Bitwave Solution:

• Bitwave automates and secures the workflow process, simplifying the management of role-based permissions and reducing the complexity of approvals. This ensures enterprise-grade access control while delivering rapid insights to financial teams and eliminating manual errors.

Compliance with Global Regulations

Challenge:

• Meeting regulatory requirements involves staying updated with changing regulations, accurately reporting transactions, and implementing effective anti-money laundering (AML) procedures. Non-compliance can lead to legal penalties and reputational damage.

Bitwave Solution:

• Bitwave's platform provides payment tools to help businesses simplify tracking and reporting and ensure compliance with tax obligations and AML regulations specific to digital asset transactions. By automating compliance reporting and offering AML frameworks, Bitwave ensures businesses adhere to regulatory standards. This reduces the risk of non-compliance, penalties, and administrative workload, allowing companies to focus on core activities instead of regulatory intricacies.

Privacy Concerns in Payment Transactions [Account Abstraction]

Challenge Solved:

• The industry has privacy concerns about disclosing a single company address for all payments, which can reveal sensitive financial information. Bitcoin wallets such as XPUB allow separate addresses per customer or invoice. Still, they have limitations, such as relying on the payee for payment amount input and lacking smart contract controls. In the EVM ecosystem, using HD wallets for privacy is challenging due to a lack of user-friendly exposure.

Bitwave Solution:

• Bitwave Payments recognizes the significance of privacy in financial transactions. To enhance privacy and security, we use smart contracts and account abstraction. Our approach helps eliminate the requirement of a single address for all payments, adding an extra layer of control. With Bitwave's solution, businesses can specify the token amount to exchange, ensuring precise and secure payments. Our solution integrates smart contract functionalities to safeguard financial information and streamline payments for businesses in the blockchain ecosystem.

Seamless Bulk Payments

Challenge Solved:

• Traditional cryptocurrency payments can be cumbersome, requiring multiple steps and systems. The lack of integration with existing financial systems often leads to fragmented visibility and payment control.

Bitwave Solution:

• Bitwave Payments lets businesses quickly initiate and complete bulk payments from their Coinbase account in order to pay vendors. It seamlessly integrates with existing accounting software and systems.

Flexible Pricing Rules

Challenge Solved:

• Handling invoices in multiple denominations, especially in a mix of fiat and crypto, complicates accounting and financial reporting. It also adds to the workload due to the need for constant recalculations based on volatile crypto prices.

Bitwave Solution:

• Bitwave's pricing engine supports invoices in any denomination and automates pricing rules, significantly reducing manual workload. This flexibility and automation simplify accounting for crypto transactions, even during volatility.

Minimized Operational Costs

Challenge Solved:

• Traditional payment and financial reporting operations are often separated, resulting in higher costs for reconciliation, customer service, and transaction processing.

Bitwave Solution:

• Bitwave consolidates these operations, reducing costs and providing a seamless financial experience across the enterprise's financial stack. This consolidation results in more efficient operations and cost savings.

Simplified Vendor Onboarding

Challenge Solved:

• Onboarding new vendors can be complex. It involves manually recording wallet information, performing security checks, and managing smart contracts.

Bitwave Solution:

• Bitwave simplifies vendor onboarding by automating the recording of wallet information in the general ledger. This streamlines the process of adding new vendors and managing payments.

Bitwave Features and Differentiators 

Bitwave offers a tailored CFO tech stack for large enterprises, SMBs, and crypto-native projects. Bitwave Payments is a unique feature that differentiates Bitwave from other accounting solutions.

This feature goes beyond generic, simple payment execution tools by potentially onboarding: 

Fortune 500 Enterprises and Global Non-Profits

• Bitwave Payments is engineered to cater to the sophisticated needs of large enterprises, including Fortune 500 companies. Our platform offers customizable integration capabilities with various ERP systems and Custodians. This integration ensures enterprises can manage and execute payments with supported assets on Coinbase Prime (i.e., ₳), aligning with their stringent financial protocols and regulatory requirements.

Accountants, Bookkeepers, and Auditors - Bitwave Certified Users

• Accountants have access to detailed transaction histories and valuation records, which aid in conducting thorough and accurate financial reviews for various entity views. 
• Projects benefit from a simplified audit process by having a single source of truth for Cardano payments.

Crypto-Native Enterprises and Early-Stage Projects Managing Digital Assets

• Operational efficiency and the ability to handle high volumes of transactions without increasing their administrative burden.
• Clarity in financial reporting, improved decision-making, and the ability to adopt a proactive approach to asset management.
• Integration of ₳ payment txn details into their traditional ERP systems.

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

Integrating Bitwave's enterprise-grade software with Cardano's infrastructure shows that the ecosystem has matured. 

• It proves that Cardano can support complex, real-world business applications beyond speculative trading and investment. This maturity is essential for attracting long-term participants and establishing Cardano as a leading enterprise protocol.

Payments Increase Network Adoption

Every transaction a business performs on the Cardano network, such as paying vendor bills or processing payroll, adds to its transaction volume. Bitwave has developed a solution that provides efficient options for bulk payments and individual transactions using ₳. This increases the utility of the Cardano native token within the ecosystem for real-world business needs.

Measuring Ecosystem Impact: 

• Total amount of processed ₳ payments
• Number of enterprises utilizing ₳ as payment
• Total number of processed ₳ payments

Global Transactional Capability

Payments are essential for projects that aim to operate and scale globally, ensuring they can engage with partners, suppliers, and clients worldwide without any obstacles.

Measuring Ecosystem Impact: 

• Types of Industries utilizing ₳ as a form of payment (i.e. Financial Institutions, Non-Profits, Crypto-native)

Future Product Enhancements:

• If the community finds this initiative successful, we plan to upgrade our CFO tech stack by introducing on-chain payments to enhance the features of Cardano. This upgrade will enable us to expand our support and include all Cardano native tokens. Additionally, users will be able to access these tokens through non-custodial wallets without the need for a custodian or exchange listings. Currently, Bitwave supports on-chain payments for Ethereum and Polygon.

[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?

Bitwave Integrates with Coinbase Prime

Bitwave is the only Digital Asset Accounting platform partnered with Coinbase! 

Our integration offers a secure B2B crypto-payment solution for enterprises. This product feature enables finance teams to initiate, send, and monitor crypto payments easily. With our Bitwave Payments module, CFOs and Accountants can quickly pay vendor invoices using popular digital assets such as USDC, ETH and soon, ₳.

Bitwave's CFO tech stack for digital assets empowers more than 300 enterprises, including Fortune 500 companies and crypto-native projects. Many Bitwave Certified Users are currently tracking and accounting for Cardano transactions. Our existing user base, as well as the anticipated increase in Cardano activity, demonstrate our ability and readiness to support the ecosystem's growth.

Our platform is relied on by CFOs and finance teams to keep track of their on-chain and custodial transactions, which include staking, lending, and executing trading strategies. This demonstrates our ability to cater to the requirements of both enterprise-level clients and crypto-native projects. Furthermore, our extensive knowledge and emphasis on serving large enterprises further increase the potential for the success of our project.

Key metrics demonstrating industry leadership and compliant infrastructure: 

• $96 billion Transaction Volume: Showing significant financial activity and enterprise scalability confidence in our platform.
• 1.2 Million NFT Tracked: Showcasing our expertise in managing digital assets.
• 30+ DeFi Protocol Integrations: Our platform provides clients seamless access to various defi strategies.

Strategic Partnerships and Expertise

Bitwave collaborates with leading accounting firms and technology providers. Their expertise in digital asset accounting provides an unmatched level of service and insight in the industry.

Bitwave <> Deloitte

Subledger Integration

Deloitte's specialization is highlighted by the numerous practitioners who have completed Bitwave's certification

Bitwave & RSM Alliance

Unparalleled advisory & managed services w/ partner expertise

EEA DeFi Risk Assessment Guidelines

Enterprise Ethereum Alliance Public Review 16 January 2024

Deloitte describes Bitwave as a “digital asset subledger that feeds into common ERP systems to enable programmable money, including payments with vendors, customers, and employees. The platform enables accounting, auditing, and reporting of data captured in distributed ledgers—capabilities that can be critical for scaling adoption..”

Wall Street Journal: Decentralized Finance May Transform How Money Is Managed 

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

₳ Payment Implementation via Coinbase Integration & Partnership

Output: 

• This milestone signifies the successful addition of ₳ support for custodial B2B payments, ensuring compliant vendor onboarding through our Custodian partner, Coinbase.

Acceptance Criteria:

• Vendor Payment Capability in ₳: 
• Bitwave clients enrolled in Bitwave Payments should be able to perform global B2B payments in ₳. 
• Operational Vendor Onboarding: 
• The procedure overview for enrolling vendors wanting to receive payments in ₳ should fully function, ensuring seamless, compliant, and efficient.
• The penny-test system must successfully send a nominal amount (for example, 0.01 ₳) to a specified Cardano address, as provided by the vendor.

Evidence:

• Bitwave will produce and share a publicly accessible Google document named: "Milestone 1 - Bitwave Custodial Payments Implementation"
• This document will contain:
• Live UI/UX Support:
• Screenshots demonstrating live UI/UX support for ₳ Payments on the Bitwave platform via custodian partner. 
• Live Transactional Activity:
• Evidence of payment activity is reflected in Bitwave’s accounting functionalities.
• Screenshots or visual proof of the vendor onboarding process emphasizing how vendors can opt to receive payments in ₳.
• A screenshot of the penny test activity within Bitwave.

Example Evidence: 

A blockchain transaction is labeled with a vendor and bill, which gets synced to an ERP system.

Example Amazon Web Service (AWS) Payment using ₳: 

1-Hour CPE Course for Cardano Payments

Output: 

• Bitwave will design, develop, and host a one-hour Continuing Professional Education (CPE) webinar. This webinar will provide a comprehensive overview of ₳ custodial payments, vendor onboarding processes, and bulk payment capabilities via integrated custodians such as Coinbase. Additionally, it will demonstrate the integration of these payment details into traditional ERP systems, showcasing the practical applications and compliance adherence.

Acceptance Criteria: 

• Webinar Content: The webinar must cover ₳ custodial payments, the vendor onboarding process, and payment activity. It should also illustrate the methods for integrating these payment systems into traditional ERP systems, enhancing transparency and operational efficiency. 
• Open Access and Educational Value: The webinar should be accessible to all interested parties and structured so that licensed professionals attending can qualify for CPE credits, ensuring real-world professional educational value.

Evidence:

• Bitwave University Listing: The recording will be available on Bitwave University after the webinar. This ensures that those who could not attend the live session can access and benefit from the content asynchronously. This archived resource will be particularly valuable for accountants and finance professionals seeking to earn CPE credits.

Driving Enterprise Adoption Through Ecosystem Subsidies:

The strategic allocation of grants to subsidize onboarding fees for enterprises directly incentivizes adoption. By offering tangible financial benefits to builders and CFOs, we aim to accelerate businesses' migration to the Cardano network, enriching the ecosystem with a broader array of enterprise-grade applications and use cases.

This initiative is designed to:

• Lower the financial barriers to entry for enterprises considering deploying on Cardano.
• Demonstrate the tangible benefits of integrating Cardano into their financial workflows through direct experience with Bitwave Payments.
• Foster a positive feedback loop where successful enterprise adoption stories encourage further participation within the ecosystem.

Business Development & Strategic Partnerships:

• Bitwave proposes a strategic partnership with the Cardano Foundation, IOHK, and EMURGO Portfolio companies. This partnership aims to identify and onboard qualified enterprise entities and early-stage projects to ensure that the subsidy reaches organizations that have the potential to make significant contributions to the Cardano ecosystem. The goal is to maximize the grant's impact and enhance the ecosystem's overall performance.

Output:

• To facilitate and simplify their integration into the Cardano ecosystem, we will subsidize subscription fees for 5 enterprises or projects, using up to 10K ₳ each.

Acceptance Criteria:

• Completion of Onboarding: Each enterprise will be fully onboarded onto the Bitwave platform with integrated Cardano payment capabilities. They will be provided an allocated ₳ subsidy to assist with their initial setup and integration.
• Operational Integration: Enterprises should effectively utilize Bitwave solutions in their financial operations within a specified timeframe, demonstrating successful integration and functionality.
• Network Effects and Ecosystem Growth: Our platform facilitates vendor direct onboarding by adopting crypto payments, which contribute to the overall activity and utility of the network. This increased activity attracts more users, developers, and entrepreneurs, promoting ecosystem growth and innovation through network effects.

Evidence - Public Announcements and Case Study

• For each successful onboarding, public announcements through Bitwave's official channels will be made. This will verify and celebrate the integration of new Cardano enterprises using $ADA as payment.
• A case study will be published on Bitwave's website, illustrating how the subsidies have facilitated successful adoption and the benefits realized by all enterprises and Cardano projects onboarded.

Close-out Report & Recap Video

Bitwave Close-out Report: 

• Document Bitwave outcomes, challenges, and future opportunities in a detailed report.

Bitwave Recap Video: 

• Project recap outlining achievements and deliverables.

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

Pat White, CEO/CTO and Co-Founder

• LinkedIn: Pat White
• Role: As our CTO, Pat oversees the integration process and manages the development team, ensuring technical alignment with project goals. He will also serve as our speaker during the Product release webinar.

Amy Kalnoki, COO and Co-Founder

• LinkedIn: Amy Kalnoki
• Role: Amy oversees Bitwave operations and marketing, ensuring project milestones are met and aligned with our strategic objectives.

Eric Cherba, Director of Blockchain Engineering

• LinkedIn: Eric Cherba
• Role: Eric directs all blockchain-related services, focusing on the technical aspects of blockchain integrations within Bitwave and the liaison between technical departments. 
• Internal Slack Channel: Cherba and Pat communicate with Michiel Bellen, Cardano Integrations. 

Jim Thompson, VP of Sales & Partnerships

• LinkedIn: Jim Thompson
• Role: Jim leads the ecosystem engagement efforts, exploring partnership opportunities and ensuring that leading Enterprises and Institutions are connected to the Cardano community.

Alberto De Pablo, Business Development & Partnerships

• Linkedin: Alberto De Pablo
• Role: Alberto is the primary liaison between Bitwave, Cardano Catalyst, and the Cardano Foundation. He coordinates internal teams for partnership, sales, and technical support initiatives.

Kaleb Leija, Marketing Director

• LinkedIn: Kaleb Leija
• Role: Kaleb will be the liaison between Bitwave and Cardano Ecosystem Projects. He will handle inquiries on co-hosting a CPE webinar, Marketing, X Space, or requesting a Bitwave speaker appearance. 

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

Based on the average price of the last 30 days retrieved from CoinMarketCap on May 9th, 2024, the pricing for ₳ is $0.4709 USD. Bitwave acknowledges that payment discrepancies may occur due to fluctuations in the value of ₳.

Milestone 1: ₳ Bitwave Payment Implementation via Coinbase Integration & Partnership

Architecture & Design:

• Blockchain Technical Product Manager
• 15 hours of research
• UI/UX Designer: 
• 30 hours of product development 

Build & Eng Testing:

• Frontend software engineer
• 25 hours of designing and testing UI/UX 
• Blockchain Data Engineering Team
• 45 hours of engineering 
• Blockchain Technical Product Manager
• 25 hours of building and testing 

Sandbox Deployment & UAT:

• DevOps Engineer
• 20 hours of sandbox deployment and user acceptance testing
• Blockchain Technical Product Manager
• 30 hours of sandbox and user acceptance testing

Production Deployment & Hypercare:

• DevOps Engineer
• 30 hours of product deployment and hypercare 
• Blockchain Data Engineering Team
• 10 hours of product engineering 
• Blockchain Technical Product Manager
• 30 hours of production and deployment

Milestone 1 Total Cost:

• Blockchain Technical Product Manager: 100 hours x $200/hr = 42,471 ₳ 
• UI/UX Designer: 30 hours x $200/hr = 12,741 ₳ 
• Frontend Software Engineer: 25 hours x $225/hr = 11,945 
• Blockchain Data Engineering Team: 55 hours x $250/hr = 29,199 ₳ 
• Devops Engineer: 50 hours x $200/hr = 21,235 ₳ 

Milestone 2: 1-Hour CPE Course Showcasing Custodial ₳ Payments

Continuing Professional Education (CPE) Webinar Resources:

• CPA Education Specialist
• 40 hours for course design and accreditation process.
• Content Developer
• 30 hours to create content and prepare materials.
• Marketing Specialist
• 30 hours for planning, promoting, and executing the course.

Milestone 2 Total Costs:

• CPA Education Specialist
• 40 hours x $70/hr = 5,946 ₳ 
• Marketing Specialist
• 30 hours x $40/hr = 2,548 ₳ 
• Content Developer
• 30 hours x $50/hr = 3185 ₳ 
• NASBA Registration
• 3185 ₳ (Annual Expense) 
• CPE Webinar Subsidies
• $50 x 50 CPE Hours Avg. = 5308 ₳

Milestone 3 - Enterprise Adoption: Ecosystem Subsidies

Objective:

• Develop and implement strategies to continue promoting the Bitwave and Cardano integration post-product launch through sustained business development efforts and strategic Cardano partnerships.

Bitwave Resources:

• Business Development Manager
• 100 hours for strategy development and partnership outreach
• Marketing Team
• 80 hours for creating marketing materials and campaign execution
• Sales Executive
• 40 hours to educate enterprises considering Cardano as their protocol of choice

Costs:

• Business Development Manager
• 100 hours x $100/hr = 21,235 ₳ 
• Marketing Team
• 80 hours x $100/hr = 4,247 ₳ 
• Sales Executive
• 50 hours x 100/hr = 10,617 ₳ 
• Cardano Ecosystem Subsidies = 50,000 ₳ 

Milestone 4 - Bitwave Close-out Report

Resources:

• Business Development Manager
• 20 hours to draft and edit the close-out report
• Project Manager
• 10 hours to review and finalize the report

Costs:

• Business Development Manager
• 20 hours x $100/hr = 4,247 ₳ 
• Project Manager
• 10 hours x $100/hr = 2,123 ₳

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

Total Catalyst Grant Requested: 150,000 ₳ or $70,635 USD 

Total Bitwave Cost = 234,204 ₳ or $110,286 USD 

Milestone #1

• Bitwave Resource Cost = 117,591₳ or $55,373 USD 

Milestone #2

• Bitwave Resource Cost = 16,987 ₳ or $8,000 USD  

Milestone #3

• Bitwave Resource Cost = 36,099 ₳ or $17,000 USD

Milestone #3

• Cardano Ecosystem Subsidies (5 x 10K ₳) = 50,000 ₳ or $23,545 USD  

Milestone #4

• Bitwave Resource Cost = 13,527 ₳ or $6,369 USD 

Bitwave Payments Integration: 100K ADA 

• Allocated for the direct product development costs associated with expanding Bitwave Payments and supporting ADA through Custodian (i.e. Coinbase). This includes designing, implementing, and integrating custodial payment functionalities specifically for the Cardano ecosystem. 

Enterprise Onboarding Subsidies: 50K ADA 

• The grant will encourage five enterprises to build on Cardano by paying for their Bitwave SaaS fees. Each enterprise will receive up to 10,000 ADA and a free consultation with one of our Accounting Executives. This will help them better understand and transition to handling Cardano payments, making it more accessible and attractive for them.