BTC/ETH smart accounts on Cardano

[GENERAL] Name and surname of main applicant

Matteo Coppola

[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)

10

[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)

Our solution is:

• A library to create smart accounts on Cardano with ETH or BTC wallets
• An opensource repository
• A demo dapp to interact

This will require writing onchain and offchain code.

[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

AFL 3.0 Open source

[SOLUTION] Please describe your proposed solution

This proposal is aimed at addressing a critical challenge within the blockchain space: interoperability between different cryptocurrency ecosystems, particularly focusing on integrating Bitcoin (BTC) and Ethereum (ETH) wallets with the Cardano network.

We perceive the problem as twofold. Firstly, the lack of seamless interoperability inhibits the potential of decentralized finance (DeFi) and other decentralized applications (dApps) by limiting their reach and functionality. Secondly, it creates fragmentation within the cryptocurrency community, hindering collaboration and innovation.

Our approach to tackling this challenge involves leveraging the capabilities of Plutus v2 and v3 to develop tools and a minimum viable product (MVP) that facilitate interaction between BTC and ETH wallets with the Cardano smart contract ecosystem.

We have chosen this approach for several reasons:

Utilization of Plutus v2 and v3: These versions of Plutus provide advanced functionality and capabilities for developing complex smart contracts on the Cardano blockchain. Leveraging these features allows us to create robust solutions for interoperability.

Focus on Smart Accounts: By developing a library specifically tailored to create smart accounts on Cardano that can interact with BTC and ETH wallets, we streamline the process for developers and users alike. This approach ensures compatibility and ease of use within the Cardano ecosystem.

Open Source Repository: We believe in the power of open source collaboration to drive innovation and adoption. By making our library and tools open source, we encourage community contributions, feedback, and scrutiny, leading to improved reliability and security.

Demo dApp: Providing a demonstration decentralized application (dApp) showcases the practical implications and benefits of our solution. This tangible example illustrates how users can seamlessly interact with BTC and ETH wallets within the Cardano ecosystem, paving the way for broader adoption and utilization.

Our project aims to engage developers, blockchain enthusiasts, and users within the Cardano community and beyond. By providing accessible tools and resources, we empower individuals and organizations to explore the potential of cross-chain interoperability and unlock new opportunities for innovation.

To demonstrate our impact, we will employ a multifaceted approach:

Technical Proof: Through rigorous testing and validation, we will ensure that our library and tools function as intended, effectively enabling interaction between Cardano smart contracts and BTC/ETH wallets.

User Feedback: We will actively solicit feedback from developers and users who interact with our demo dApp. This feedback will inform iterative improvements and refinements to enhance usability and functionality.

Community Engagement: By fostering discussions and collaborations within the Cardano community, we will gauge interest and gather insights into the perceived value and potential applications of our solution.

What sets our solution apart is its focus on simplicity, accessibility, and compatibility. By bridging the gap between different cryptocurrency ecosystems, we enable seamless interaction and interoperability, unlocking new possibilities for decentralized finance, cross-chain asset transfers, and innovative dApp development.

Ultimately, our solution benefits not only Cardano users but also the broader cryptocurrency community by promoting collaboration, interoperability, and inclusivity. This initiative aligns with Cardano's vision of creating a scalable, sustainable, and inclusive blockchain platform that empowers individuals and organizations worldwide.

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

The impact is the following:

Every user on BTC or ETH can use our 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?

We have already tested the plutus functions and showed case it is possible, now it's time to build the tools

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

Integration of BTC Accounts Using Plutus v2: Develop and implement functionality to create smart accounts on Cardano that can interact with Bitcoin wallets. This milestone involves leveraging the features of Plutus v2 to enable seamless communication between Cardano smart contracts and the Bitcoin network.

Development of Demo dApp Using BTC Accounts: Create a demonstration decentralized application (dApp) that showcases the functionality of BTC accounts within the Cardano ecosystem. This milestone involves building a user-friendly interface and implementing core features such as token transfers and smart contract interactions using Bitcoin wallets.

Integration of ETH Accounts Using Plutus v3: Extend the capabilities of the project to support Ethereum accounts using Plutus v3. This milestone involves leveraging the advanced features of Plutus v3 to enable interaction between Cardano smart contracts and Ethereum wallets, including support for Ethereum Virtual Machine (EVM) compatibility.

Build a demonstration dApp that demonstrates the integration of Ethereum accounts within the Cardano ecosystem. This milestone involves implementing features similar to the BTC demo dApp but tailored to Ethereum wallets, such as token swaps and decentralized finance (DeFi) interactions.

Integrate the functionality of both BTC and ETH accounts into a single comprehensive demonstration dApp. This milestone involves combining the features developed in the previous milestones to create a unified user experience that showcases the full potential of interoperability between Cardano, Bitcoin, and Ethereum networks.

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

Raul Antonio Rosa Padilla CTO at FluidTokens is the developer that will work on the libraries

Matteo Coppola CEO at FluidTokens is the head of development and will build the APIs to interact

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

Engineering Team (3 Engineers):

Salary for 10 months of work: $80,000

This includes the study of libraries, building libraries, APIs, and all development work required for the project.

Third-Party Services:

Cloud Hosting (e.g., AWS, Google Cloud): $5,000

These services will be used for hosting development environments, testing, and deployment of the demo dApps.

Documentation and Reporting:

Technical Writing and Documentation: $10,000

This includes the creation of comprehensive documentation, tutorials, and reports on the project's progress and outcomes.

Marketing and Community Engagement:

Community Workshops and Webinars: $15,000

This budget covers expenses for organizing and hosting workshops, webinars, and community events to promote the project and engage with stakeholders.

Miscellaneous Expenses:

Contingency Fund: $10,000

This serves as a buffer for unexpected expenses or additional requirements that may arise during the course of the project.

Total Budget: $120,000

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

By enabling interoperability between Cardano and major cryptocurrencies like Bitcoin and Ethereum, the project unlocks new opportunities for collaboration, innovation, and growth within the Cardano ecosystem. The cost of the project is an investment in building bridges between different blockchain networks, facilitating cross-chain asset transfers, decentralized finance (DeFi) applications, and other use cases that benefit Cardano users and developers. Expansion of Use Cases: The project's focus on creating tools and libraries for interacting with BTC and ETH wallets expands the range of use cases and applications available on the Cardano platform. This increased functionality attracts new users and developers to the ecosystem, driving adoption and usage of Cardano-based solutions. The cost of the project represents an investment in expanding the utility and value proposition of Cardano, enhancing its competitiveness in the broader blockchain landscape.