BTC ordinals applied to Cardano

[GENERAL] Name and surname of main applicant

Research Guild

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

Entity (Not Incorporated)

[GENERAL] Co-proposers and additional applicants

Zubeka Dang

Ran Arino

[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)

Migrating and adapting Bitcoin's ordinal methodology and success to Cardano for secure, transparent, and efficient NFT collecting and trading.

[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.”

Collaboration with Cardano development teams and external blockchain / NFT - Ordinal consultants to ensure integration compatibility and adoption.

[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

Our project outputs are governed by a Copyfair licensing framework, which enables open-source use while also ensuring fair compensation for commercial applications. This approach fosters collaboration and innovation within the open-source community while safeguarding against exploitation in commercial contexts. For more information on Copyfair licenses and their rationale, please visit the P2P Foundation website.

The RG Github repo will be available here.

[METADATA] SDG rating

The project aims to aid in informed investment decisions, contributing to economic growth and prosperity. By providing real-time market insights and analysis, it supports SDGs related to Decent Work and Economic Growth (SDG 8) and Industry, Innovation, and Infrastructure (SDG 9). Additionally, through its open-source nature, the project fosters collaboration and knowledge sharing, promoting Partnerships for the Goals (SDG 17).

[SOLUTION] Please describe your proposed solution

Our solution seeks to import the success of Bitcoin ordinals into the Cardano ecosystem by creating a protocol that embeds complete asset data directly on the Cardano blockchain. This approach ensures data permanence, enhances security by reducing reliance on external metadata sources, and simplifies the asset verification process, making it inherently more robust against fraud and copyright issues. By leveraging Cardano's existing capabilities with a new layer of ordinal functionality, we can significantly improve how NFTs are managed, tracked, and engaged with on the platform.

Perception of the Problem

NFTs on Cardano lack on-chain permanence and are losing traction due to reliance on external metadata sources, posing security and authenticity risks.

Approach Rationale

We aim to address this by importing Bitcoin's ordinal methodology, embedding complete asset data directly on the Cardano blockchain. This approach ensures data permanence, enhances security, and simplifies asset verification, making NFTs more robust against fraud and copyright issues.

Engagement

Our project will engage the Cardano community, NFT creators, collectors, and traders, seeking to revolutionize how NFTs are managed, tracked, and engaged with on the platform.

Demonstration of Impact

We'll demonstrate impact through rigorous testing, community feedback, and successful integration of ordinal functionality into the Cardano ecosystem. Success will be measured by increased NFT adoption, improved security, and simplified asset verification processes.

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

This project will improve the security, transparency, and efficiency of NFT management on Cardano. It will make the ecosystem more attractive to existing / new users and developers, fostering greater adoption and innovation. Additionally, the project aims to set a new standard in blockchain asset integrity, potentially reducing legal and operational risks associated with digital assets.

Value to the Cardano Community

Success will enhance the security, transparency, and efficiency of NFT management, attracting both existing and new users and developers to the ecosystem. It will foster greater adoption and innovation while potentially reducing legal and operational risks associated with digital assets.

Measuring Impact

Impact will be measured by assessing factors such as increased NFT adoption, improved security measures, simplified asset verification processes, and the establishment of a new standard in blockchain asset integrity.

Sharing Outputs and Opportunities

Outputs and opportunities will be shared through regular project updates, community engagement, and transparent reporting. Additionally, we'll host workshops, webinars, and educational materials to disseminate knowledge and encourage participation in the enhanced NFT ecosystem on Cardano.

[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?

The Research Guild is part of the Project Catalyst F8 funded cohort, having two research projects funded and delivered in the areas of Cross-Chain Collaboration and Blockchain Scalability solutions. These projects were completed by adhering to internal systems of documentation and accountability, as well as being guided by Project Catalyst’s emergent reporting processes.

Our team has extensive experience in blockchain / NFT research, Ordinals on BTC (creating collections, collecting, trading) and has previously delivered successful projects within the Catalyst framework. This project will build on that expertise, with rigorous testing and community feedback integrated into the development process to ensure feasibility and effectiveness.

FINANCIAL MANAGEMENT

In terms of fund management, the total funds distributed to the Research Guild to date for project salaries, administration and completion equates to US$168,738 or ₳410,000. The processes we use to manage these funds are visible in the RG Payment Pathway document.

PRIOR WORK

Research Guild: Final Reports

RG001 (Blockchain Scalability) Close-Out Report

RG002 (Cross-Chain Collaboration) Close-Out Report

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

The following outline includes four Catalyst Milestones, and two internal RG Team Milestones.

CATALYST MILESTONE. Initiation (Project Stage 1)

Establish project framework and finalize project plan.

Milestone outputs:

• Established project framework document outlining project scope, objectives, and deliverables.
• Finalized project plan with timelines, resource allocation, and budget estimation.

Acceptance criteria:

• Project framework document approved by the project stakeholders.
• Project plan reviewed and agreed upon by the project team.

Evidence of milestone completion:

• Signed-off project framework document by stakeholders.
• Approved project plan by the project team.

Milestone Allocation: 30%

CATALYST MILESTONE. Development (Project Stage 2)

Code the adaptation of ordinal functionality to Cardano.

Milestone outputs:

• Completed adaptation of ordinal functionality to Cardano in code.
• Documentation detailing the implementation process and any technical specifications.

Acceptance criteria:

• Adaptation code passes code review and testing.
• Documentation is comprehensive and understandable by the development team.

Evidence of milestone completion:

• Adaptation code merged into the project repository.
• Documentation reviewed and approved by the development team.

Milestone Allocation: 30%

CATALYST MILESTONE. Integration (Project Stage 3)

Ensure seamless integration with existing Cardano DeFi platforms.

Milestone outputs:

• Successfully integrated the adapted ordinal functionality with existing Cardano DeFi platforms.
• Tested integration for compatibility and functionality.

Acceptance criteria:

• Integration passes compatibility tests with existing Cardano DeFi platforms.
• Integration enhances the functionality of the platforms without any adverse effects.

Evidence of milestone completion:

• Integration tests pass without any critical issues.
• Feedback from the Cardano DeFi platform developers confirming successful integration.

Milestone Allocation: 25%

RG TEAM MILESTONE. Testing (Project Stage 4)

Conduct thorough testing with community involvement to refine the system.

Milestone outputs:

• Conducted thorough testing of the adapted ordinal functionality with community involvement.
• Documented test results and feedback for further refinement.

Acceptance criteria:

• Testing involves a diverse range of community members representing different user scenarios.
• Feedback from testing participants addresses identified issues and provides suggestions for improvement.

Evidence of milestone completion:

• Comprehensive testing report documenting test scenarios, results, and feedback.
• Issues identified during testing addressed or logged for resolution.

Milestone Allocation: 0%

RG TEAM MILESTONE. Deployment (Project Stage 5)

Roll out the solution across the Cardano network.

Milestone outputs:

• Rolled out the adapted ordinal functionality solution across the Cardano network.
• Provided user documentation and support for adopting the new functionality.

Acceptance criteria:

• Deployment completed without disruptions to existing Cardano network operations.
• User documentation is clear, concise, and readily accessible.

Evidence of milestone completion:

• Confirmation of successful deployment from network monitoring tools.
• Positive feedback from users regarding the usability and effectiveness of the new functionality.

Milestone Allocation: 0%

CATALYST MILESTONE. Evaluation & Reporting (Project Stage 6)

Monitor and evaluate the system’s performance and impact for Catalyst Close-Out Report.

Milestone outputs:

• Monitored and evaluated the performance and impact of the adapted ordinal functionality over a specified period.
• Generated evaluation reports with key findings and recommendations for further enhancements.

Acceptance criteria:

• Evaluation metrics defined and tracked consistently throughout the evaluation period.
• Evaluation reports include quantitative and qualitative data analysis.

Evidence of milestone completion:

• Evaluation reports submitted to Catalyst stakeholders.
• Implementation of recommended enhancements based on evaluation findings.

Milestone Allocation: 15%

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

Sév Bonnet | Project Lead, Research Lead, Compliance / IP Auditing, PhD Candidate (2021-Current)

Sév has a professional background in license compliance and intellectual property auditing in the software industry, both open source and proprietary. He started his PhD with The University of Osnabrück in Germany, focusing on the impact of distributed ledger technology for the management of the intellectual property life cycle. Sév has research interests in NFT’s, DAO’s and has contributed to governance building within several Catalyst projects.

Troy Egan | RG Project Manager, Research Lead, PhD Candidate (2019-Current)

Troy is a PhD candidate at Auckland University, studying peer-production strategies within the creative sector. He has 20 years’ experience in the creative, health and community development sectors in New Zealand and Australia. He is also a previous Co-Proposer and Catalyst Fund3 Co-Recipient with NFT-DAO. Troy will be supporting the Research Guild’s project management and research contributions.

Zubeka Dang | Researcher, Machine Learning Researcher, Bachelor of International Economics and Trade, Data Science Student (2021 – Current)

Zubeka is a machine learning researcher with a diverse background spanning trading, technology, and linguistics. Her multifaceted experience has cultivated a strong passion for machine learning, deep learning, and data analysis. Zubeka holds a Bachelor of International Economics and Trade from Renmin University of China and is currently pursuing a Bachelor of Data Science and Analytics at Seneca College in Toronto, Canada.

Ran Arino | Developer, Data Scientist and Analyst, Honours Bachelor of Data Science and Analytics (2022-Current)

Ran is a data scientist and analyst with a strong foundation in Python programming, machine learning, and data analytics. Leveraging a deep understanding of technological tools, he has demonstrated remarkable adaptability in integrating emerging technologies to enhance decision-making processes and task optimization. He holds an ongoing Honours Bachelor of Data Science and Analytics degree from Seneca Polytechnic in Toronto, Canada.

IdeaHub

IdeaHub is an emergent project within the Research Guild that will explore research and development in the areas of tech enterprise, collaboration and platform building. We are open to working with like-minds in this domain.

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

Total Requested Funds: 100,000 ADA

Project Costs - Project Team Salary

Project/Dev Lead (x1 @ 10 hours per week)

• @ US$35.50 per hour
• @ 10 hours per week = $355
• @ 48 weeks = $17,040
• Subtotal = US$17,040 (₳37,075)

Developer (x1 @ 10 hours per week)

• @ US$30.00 per hour
• @ 10 hours per week = $300
• @ 48 weeks = $14,400
• Subtotal= US$14,400 (₳31,388)

Project Management (x1 @ 5 hours per week)

• @ US$42.64 per hour (project manager rate)
• @ 5 hours per week = $213.20
• @ 48 weeks = $10,233.60
• Subtotal = US$10,233.60 (₳22,280)

Project Costs: Administration

• Integration and Testing: $1,275.60
• Community Engagement and Feedback: $1,275.60
• Administration and Overheads: $1,275.60
• Contingency and Unexpected Costs: $425.20
• Subtotal = US$4,252 (₳9,257)

Total = US$45,925 (₳100,000)

• Note: The USD to ADA rate is $0.46 at the time of writing. In the event that ADA prices should rise considerably, surplus funds will be employed on extra developer hours or roles.

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

This project leverages minimal resources for maximum impact, focusing on scalable AI solutions that enhance DeFi usability and trust, directly contributing to the growth and stability of the Cardano ecosystem. With experience in blockchain research and Catalyst-funded projects, our team will conduct in-depth analysis and documentation, achieving campaign goals efficiently and cost-effectively. And, by drawing on our extensive experience in Catalyst-funded research, our team specializes in open-sourcing and community collaboration, aligning with the community's values.

See our project salary base rates here.