The reliance on seed phrase-based wallet recovery and the lack of No-Code Self-Sovereign Identity solutions are hindering mass adoption. 日本語
This is the total amount allocated to Accelerate Mass Adoption: Open Source Atala Wallet SDK with No Seed Phrase Vulnerability and a No-Code Self-Sovereign Identity Platform.
NB: Monthly reporting was deprecated from January 2024 and replaced fully by the Milestones Program framework. Learn more here
We improve the Atala identity wallet SDK to allow wallet recovery using a password-protected backup file instead of a seed phrase. We also build a no-code Self-Sovereign Identity platform.
For Milestone 3, we are reliant on IOG's Atala Team to review and merge our Pull Request into the Atala Wallet SDK. We have already initiated discussions with the Atala Team at IOG and begun collaboration.
Our project is proudly open source, licensed under the GNU General Public License v3.0 (GPLv3). This license allows others to freely use, modify, and distribute our code, under the condition that any derivative work will also be open source under the GPLv3. This fosters collaboration and community-driven development, as it encourages other developers to contribute to our project, or to use our code as a starting point for their own projects, thus driving innovation in the sector.
By making our project open source, we aim to contribute to the global movement of shared knowledge and collaborative problem solving. This approach ensures transparency, promotes the sharing of knowledge, and encourages a collective approach to addressing the challenges associated with the impact job sector. Ultimately, we believe that open-sourcing our project will lead to a more robust, efficient, and impactful solution, thanks to the contributions of the global developer community.
Our project aligns with the following Sustainable Development Goals (SDGs):
By addressing these SDGs, our project aims to contribute to the overall sustainable development and positive social impact within the Cardano community and beyond.
Problem 1: The reliance on seed phrase-based wallet recovery is hindering mass adoption.
The widespread adoption of blockchain wallets is significantly hindered by the use of seed phrases for wallet recovery. Seed phrases, also known as recovery or mnemonic phrases, are a list of words required to recover a blockchain wallet. This applies to both crypto wallets for token transactions and identity wallets for managing Decentralized Identifiers (DIDs) and Verifiable Credentials (VCs). For security reasons, this phrase must be kept confidential[^1^].
Backgrounds on seed phrases
Since a private key consists of random binaries, it's not human-readable, so it must be stored digitally. However, due to hacking risks, BIP39 was created to allow these keys to be written down on paper[^2^].
However, the seed phrase being a single point of failure poses several challenges. Firstly, users may forget their seed phrases or misplace the physical copy containing it[^3^]. Secondly, if another person acquires the seed phrase, they can access the wallet and its funds[^4^]. Lastly, non-technical users may find the concept of a seed phrase difficult to comprehend and manage[^5^].
These challenges are discussed in several sources. For instance, this Cointelegraph article states that seed phrase recovery is a hindrance to mass adoption: “As the Web3 space looks to onboard its first billion users, intuitive wallet experiences are critical. Seed phrases are a hindrance to that experience.” In addition, this Blockworks article states that seed phrases have become a “major pain point for users”.
Currently, the Atala PRISM Identity Wallet SDK only supports wallet recovery based on seed phrases. This limitation hinders mass adoption.
[^1^]: Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System.
[^2^]: Bitcoin Improvement Proposals. (2013). BIP39: Mnemonic code for generating deterministic keys.
[^3^]: Lee, T. B. (2018, August 4). I forgot my PIN: My epic tale of losing $30,000 in bitcoin. ARS Technica.
[^4^]: Hern, A. (2016, March 18). What happens to your bitcoin when you die? The Guardian.
[^5^]: Mearian, L. (2014, February 7). Bitcoin's software gets security fixes, new features. Computerworld.
Alternatives to seed phrase-based recovery:
Two primary alternatives to seed phrase-based recovery exist: social recovery and multifactor recovery involving backup files. Social recovery, which has been endorsed by Ethereum co-founder Vitalik Buterin[^1^], utilizes trusted contacts to help users regain access to their accounts. A prominent example of a wallet employing this method is the Argent wallet[^2^].
On the other hand, multifactor recovery involves the use of backup files in addition to other authentication measures. Wallets using this method are rare, especially within the Cardano ecosystem. However, some examples do exist outside of it. For instance, the Dock.io identity wallet uses a recovery system involving a password-protected backup file[^3^]. Our plan includes implementing a similar solution to enhance the security and user experience of our wallet.
[^1^]: Buterin, V. (2018, January 11). A simple and secure wallet.
[^2^]: Argent. (2019, May 13). Introducing Argent V1: A new type of Ethereum wallet.
[^3^]: Dock.io. (2021). Wallet Recovery.
See also:
https://www.cypherock.com/features/no-backup
https://medium.com/@bitizenwallet/private-keys-single-point-of-failure-a20b5f00a67d
Solution 1: We improve the Atala identity wallet SDK to allow wallet recovery using a password-protected backup file instead of a seed phrase.
The solution aims to address the vulnerability of seed phrases by enhancing the Atala identity wallet SDK to allow wallet recovery using a password-protected backup file instead of a seed phrase. Essentially, this wallet eliminates a single point of failure through the use of two-factor authentication, i.e., a password and a backup file. Consequently, even if someone acquires your backup file, they can't decrypt it without your password. Similarly, a password alone is useless without access to your backup file. Moreover, you can always change your password. Implementing two-factor authentication for recovery significantly improves both security and user experience.
Wallets with multi-factor authentication are rare, but they do exist outside the Cardano ecosystem. For example, the Dock.io identity wallet uses a recovery system with a password-protected backup file. We plan to implement a similar solution.
Specifically, we will contribute to the Atala PRISM Identity Wallet SDK repository. We aim to add new features without affecting the existing wallet recovery feature which uses seed phrases. The new features include the following:
The technical schema is found below:
This plan has been discussed with IOG's Atala PRISM team. They have confirmed that this improvement is not part of their roadmap and would welcome this additional feature to the SDK.
This solution allows projects in the Cardano ecosystem to create their own wallets using this SDK. They can use a password-protected backup file for wallet recovery. This method is not only user-friendly but also secure. It will contribute to the widespread adoption of identity wallets and Self-Sovereign Identity.
With this enhanced SDK, we'll boost Socious Wallet's security by shifting from seed phrase recovery to multifactor file backup recovery. This will let end-users enjoy the advantages of SSI, DID, and VC without the complexity of managing seed phrases or the risk of a single point of failure. Upon completion of this project, users will have a secure identity wallet on their iOS and Android mobile devices without the need to manage seed phrases.
Socious has been a longstanding contributor to the Atala PRISM community. Socious’s open-source wallet, built using the Wallet SDK, has been shared with the community. Many community members have used the Socious Wallet as a reference in developing their own wallets.
Problem 2: The lack of No-Code Self-Sovereign Identity solutions are hindering mass adoption.
Organizations can issue work and educational certificates as verifiable credentials using Socious Talent Marketplace. Users can then receive these certificates using Socious Wallet. Nevertheless, we have received requests from several organizations seeking to use Self-Sovereign Identity (SSI) solutions for various purposes. For example, one organization wants to use SSI to verify someone's adult status without revealing their identity, utilizing zero-knowledge proofs. Another organization wants to use SSI to confirm membership in a specific community. Currently, there is no no-code platform that allows these organizations to flexibly create verifiable credentials schemas of their choice or create proof presentation requests.
Organizations have the ability to issue both work and educational certificates as verifiable credentials using the Socious Talent Marketplace. This platform serves as a reliable source for these important documents, providing a level of trust and verification. Users can then receive these certificates using Socious Wallet, a secure and user-friendly platform for storing and accessing these credentials.
However, we have noticed a growing trend amongst our clients. We've received numerous requests from several organizations who are interested in using Self-Sovereign Identity (SSI) solutions for a variety of different purposes. The reasons behind this are diverse.
For instance, one particular organization is interested in using SSI to verify someone's adult status without revealing their identity. They want to achieve this by utilizing zero-knowledge proofs. This technique would allow the organization to confirm the individual's age without needing any other personal details, thus ensuring privacy and trust.
Similarly, another organization wants to use SSI to confirm membership in a specific community. This would help them maintain the exclusivity of their community while also providing a verifiable means of confirming membership.
Currently, one of the challenges these organizations face is the lack of a no-code platform that would allow them to create verifiable credentials schemas of their choice or to create proof presentation requests. This lack of flexibility in the current solutions available on the market is a significant hurdle for these organizations, and it's something that needs to be addressed.
Solution 2: We build a no-code Self-Sovereign Identity platform.
Our no-code Self-Sovereign Identity (SSI) platform is designed to be a game-changer in the field of digital identity management. It will allow organizations to create their own verifiable credentials schemas and proof presentation requests, without requiring any coding knowledge. This platform will democratize access to SSI solutions, enabling organizations of all sizes and industries to leverage the power of decentralized identities.
This platform will be user-friendly and intuitive, designed with a clean and simple user interface that makes it easy even for non-technical users to navigate. It will provide a easy-to-use interface for creating verifiable credentials schemas, with a wide range of customizable fields to suit various use cases.
For example, Japan's laws related to online cigarette sales require sellers to verify the buyer's age. This is achieved by asking them to upload scans of their government-issued IDs. Sellers can only deliver to adults at the address listed on the ID. A high demand exists for zero-knowledge proof due to the perceived risk of sharing driver's license scans. If the seller's server is compromised, crucial identity information could be used maliciously. However, due to a lack of technical knowledge, it's challenging for cigarette sellers to integrate Self-Sovereign Identity (SSI) solutions into their websites. With a no-code SSI platform, an organization wanting to verify someone's adult status could create a credential schema with fields for birth date. Another scenario is when an organization wishes to verify community membership. They could create a schema with fields for the membership number and joining date.
In addition to creating verifiable credentials schemas, the platform will also allow organizations to create proof presentation requests. These are requests for a holder of a verifiable credential to present certain pieces of data from their credential, without revealing the entire credential. For example, a bar could request proof that a customer is over the legal drinking age, without needing to see their full ID. This aligns with privacy-enhancing technologies like zero-knowledge proofs, which allow individuals to prove certain facts about themselves without revealing any additional information.
Importantly, this platform will be built on Cardano, leveraging the security and decentralization of the Cardano blockchain and Atala PRISM. The verifiable data registry (VDR) will be anchored on the Cardano blockchain, providing an immutable record that can be independently verified by any party. This will increase trust in the credentials issued through the platform, as they cannot be tampered with or falsified.
Overall, our no-code SSI platform will lower the barriers to entry for organizations wanting to implement SSI solutions, promoting wider adoption of decentralized identities. It will provide organizations with the flexibility to create their own credential schemas and proof requests, enabling a multitude of use cases. And by building on Cardano, it will offer a secure and decentralized solution that respects user privacy.
Technical Resources: For a deeper understanding of our project's technical foundation, please explore the following resources:
Additional information can be found here: https://socious.notion.site/Public-Accelerate-Mass-Adoption-Open-Source-Atala-Wallet-SDK-with-No-Seed-Phrase-Vulnerability-and--a9bf8318af95458eb158f512fd4e8585?pvs=4
Value to the Cardano Community: The success of the project will bring value to the Cardano Community by addressing significant challenges of seed phrase-based wallet recovery and the lack of no-code Self-Sovereign Identity solutions. This will contribute to mass adoption of identity wallets and enhance the utility of digital identities within the Cardano network.
Measuring Impact: The impact of our project will be measured through both quantitative and qualitative metrics:
Sharing Outputs and Opportunities: We will share the outputs and opportunities of our project through the following methods:
Through these measures, we aim to not only quantify the impact of our project but also foster a sense of collaboration and shared growth within the Cardano community. Our commitment to transparency and engagement will ensure that the benefits of our project are widely disseminated and leveraged for the advancement of the Cardano ecosystem.
Our team is aptly suited and equipped to successfully deliver this project. We possess the requisite capabilities that uniquely position us to execute this project to high standards of trust and accountability.
Socious is a fast-growing impact startup that provides a talent marketplace, making impact work accessible and transparent. We connect purpose-driven professionals with impact organizations through AI matching. We use blockchain to trace impact work and reward contributions.
Socious is supported by 500Global, Microsoft, and Milkomeda Foundation. Our platform lists over 80k jobs, 24k organizations, and has 8k registered users. Our team consists of experts in impact measurement, finance, data science, and blockchain development.
Our team members include:
Title: Founder and CEO
Role: Product Ownership, Project Management, Research
Commitment: Full-time
Linkedin:
https://www.linkedin.com/in/seirayun/
Bio: Seira Yun is the Founder and CEO of Socious.io, a talent marketplace that makes impact work accessible and transparent. Socious connects purpose-driven professionals with impact organizations through AI matching, and uses blockchain to trace impact work and reward contributions.
Seira is a serial impact entrepreneur with years of experience in the sector. He has led teams within the ICRC, UNHCR, and social ventures. Drawing from personal experiences as a migrant, an autistic person, and a proud pansexual queer, Seira is driven to make the world a better place through social innovation. As a full-stack developer with a Master's in Social Innovation from the University of Cambridge, he enjoys blending technology with purpose. Seira is also an impact angel investor, a member of Hustle Fund's Angel Squad, and a mentor for 4WARD.VC's Climate Accelerator. When not working, he enjoys shooting hoops, running, reading, spending quality time with the kids, or embracing the adventure of getting lost during travels. He is also a long-term member of the Cardano community; he’s won and managed five Catalyst projects and has completed Atala PRISM Pioneer Program.
Title: Lead Designer
Role: Design
Commitment: Full-time
LinkedIn:
https://www.linkedin.com/in/michel-douang/
Bio: With more than a decade of experience specializing in product design, Minh is a multidisciplinary artist who has always believed art has a language of its own. As a neurodiverse individual, Minh is passionate about helping people and creating sustainable and inclusive solutions.
Title: Lead Developer
Role: Backend/Blockchain/AI Engineering
Commitment: Full-time
LinkedIn:
https://linkedin.com/in/ehsan-mahmoudi-611123b8/
Bio: More than 8 years of experience in Python and Machine Learning as well as extensive experience in blockchain development. Ehsan has worked for global startups including Rechat, AEC, and Navaak.
Title: Senior Frontend Developer
Role: Frontend Development
Commitment: Full-time
LinkedIn: https://www.linkedin.com/in/sanaz-mahmoudi/
Bio: An experienced frontend developer with 7+ years of experience.
Title: Senior Frontend Developer
Role: Frontend Development
Commitment: Full-time
Bio: An experienced frontend developer with 10+ years of experience.
Title: QA Engineer
Role: Quality Assurance
Commitment: Full-time
LinkedIn:
https://www.linkedin.com/in/azin-zare-355a27179/
Bio: An experienced QA engineer with 9+ years of experience.
Title: Software Engineer
Role: Backend and DevOps Engineering
Commitment: Full-time
LinkedIn:
https://www.linkedin.com/in/mohammad-hosein-balkhani/
Bio: An experienced software engineer with 7+ years of experience.
Title: Design Advisor
Role Design Direction
Commitment: Part-time
LinkedIn: https://www.linkedin.com/in/raphaelhode/
Bio: Raphael is a Strategic Designer with a passion for social innovation and sustainability. After a few years in advertising agencies in Paris, Raphael moved to Tokyo in 2015 and joined Designit, a global strategic design firm. At Designit Raphael worked on growing a team and helping some of Japan’s most ambitious companies make innovation happen, leading him to endorse a variety of roles across UX design, service design, business design, and strategy.
In parallel, he has been passionately engaging in activities related to sustainability and social innovation: giving talks and workshops, mentoring early-stage social founders, and eventually co-founding a social venture. Today, he spends most of his time working with incredible social entrepreneurs to help them define, design, and launch visionary products that contribute to creating a more sustainable society.
To supplement our core team, we maintain a reserve of skilled freelancers, ready to contribute at short notice. Our talent marketplace, Socious, is a hub for over 8,000 individuals, many of whom could potentially assist in this project, if required.
The trustworthiness in our fund management processes is grounded in our serious adherence to legal and financial compliance. Each transaction conducted is meticulously documented with tangible evidence and audited internally for accuracy. To bolster our commitment to financial transparency, we have established collaborations with external accounting firms that assure compliance. Our Japanese entity works with Tatsumi Accounting Firm, while our Singaporean entity partners with BBCIncorp.
Additionally, we liaise with an external law firm, Enlighten Law Group, to ensure full legal compliance. This meticulous, multilayered approach to fund management reflects our dedication to maintaining high levels of trust and accountability.
Milestone 1: Market and Technical Research
Outputs
Milestone 1 has the following outputs (deliverables):
In order to deliver the aforementioned deliverable, we will conduct the following activities.
Acceptance criteria
The deliverables are considered “accepted” when they meet the following criteria.
Evidence of Milestone completion
As evidence of milestone completion, we submit the following:
Expected timeline for the delivery
Month 2
Cost
36,364 ADA
% Completion
7%
Milestone 2: UI/UX Research and Design
Outputs
Milestone 2 includes the following key outputs / deliverables:
Acceptance criteria
The deliverables are considered “accepted” when they meet the following criteria.
“Production-ready” means that it doesn’t need more work from designers and is ready for the engineering team to turn the design into code.
Evidence of Milestone completion
The following five items will be publicly available for the reviewers.
Expected timeline for the delivery
Month 4
Cost
53,636 ADA
% Completion
18%
Milestone 3: Contribution to the Wallet SDK and Development of Wallet
Outputs
Milestone 3 includes the following key outputs / deliverables:
Acceptance criteria
The deliverables are considered “accepted” when they meet the following criteria.
Evidence of Milestone completion
As evidence of milestone completion, we submit the following:
Expected timeline for the delivery
Month 6
Cost
110,909 ADA
% Completion
41%
Milestone 4: No-Code SSI Platform - Issuing Credentials
Outputs
Milestone 4 includes the following key outputs / deliverables:
Acceptance criteria
The deliverables are considered “accepted” when they meet the following criteria.
Evidence of Milestone completion
As evidence of milestone completion, we submit the following:
Expected timeline for the delivery
Month 8
Cost
116,364 ADA
% Completion
65%
Milestone 5: No-Code SSI Platform - Verifying Credentials
Outputs
Milestone 5 includes the following key outputs / deliverables:
Acceptance criteria
The deliverables are considered “accepted” when they meet the following criteria.
Evidence of Milestone completion
As evidence of milestone completion, we submit the following:
Expected timeline for the delivery
Month 10
Cost
114,545 ADA ($21,280)
% Completion
88%
Title: Marketing and Close-out report / video
Outputs
Milestone 6 (Final) includes the following key outputs / deliverables:
Acceptance criteria
The deliverables are considered “accepted” when they meet the following criteria.
Evidence of Milestone completion
Expected timeline for the delivery
Month 12
Cost
57,273 ADA
% Completion
100%
Our team is aptly suited and equipped to successfully deliver this project. We possess the requisite capabilities that uniquely position us to execute this project to high standards of trust and accountability.
Socious is a fast-growing impact startup that provides a talent marketplace, making impact work accessible and transparent. We connect purpose-driven professionals with impact organizations through AI matching. We use blockchain to trace impact work and reward contributions.
Socious is supported by 500Global, Microsoft, and Milkomeda Foundation. Our platform lists over 80k jobs, 24k organizations, and has 8k registered users. Our team consists of experts in impact measurement, finance, data science, and blockchain development.
Our team members include:
Title: Founder and CEO
Role: Product Ownership, Project Management, Research
Commitment: Full-time
Linkedin:
https://www.linkedin.com/in/seirayun/
Bio: Seira Yun is the Founder and CEO of Socious.io, a talent marketplace that makes impact work accessible and transparent. Socious connects purpose-driven professionals with impact organizations through AI matching, and uses blockchain to trace impact work and reward contributions.
Seira is a serial impact entrepreneur with years of experience in the sector. He has led teams within the ICRC, UNHCR, and social ventures. Drawing from personal experiences as a migrant, an autistic person, and a proud pansexual queer, Seira is driven to make the world a better place through social innovation. As a full-stack developer with a Master's in Social Innovation from the University of Cambridge, he enjoys blending technology with purpose. Seira is also an impact angel investor, a member of Hustle Fund's Angel Squad, and a mentor for 4WARD.VC's Climate Accelerator. When not working, he enjoys shooting hoops, running, reading, spending quality time with the kids, or embracing the adventure of getting lost during travels. He is also a long-term member of the Cardano community; he’s won and managed five Catalyst projects and has completed Atala PRISM Pioneer Program.
Title: Lead Designer
Role: Design
Commitment: Full-time
LinkedIn:
https://www.linkedin.com/in/michel-douang/
Bio: With more than a decade of experience specializing in product design, Minh is a multidisciplinary artist who has always believed art has a language of its own. As a neurodiverse individual, Minh is passionate about helping people and creating sustainable and inclusive solutions.
Title: Lead Developer
Role: Backend/Blockchain/AI Engineering
Commitment: Full-time
LinkedIn:
https://linkedin.com/in/ehsan-mahmoudi-611123b8/
Bio: More than 8 years of experience in Python and Machine Learning as well as extensive experience in blockchain development. Ehsan has worked for global startups including Rechat, AEC, and Navaak.
Title: Senior Frontend Developer
Role: Frontend Development
Commitment: Full-time
LinkedIn: https://www.linkedin.com/in/sanaz-mahmoudi/
Bio: An experienced frontend developer with 7+ years of experience.
Title: Senior Frontend Developer
Role: Frontend Development
Commitment: Full-time
Bio: An experienced frontend developer with 10+ years of experience.
Title: QA Engineer
Role: Quality Assurance
Commitment: Full-time
LinkedIn:
https://www.linkedin.com/in/azin-zare-355a27179/
Bio: An experienced QA engineer with 9+ years of experience.
Title: Software Engineer
Role: Backend and DevOps Engineering
Commitment: Full-time
LinkedIn:
https://www.linkedin.com/in/mohammad-hosein-balkhani/
Bio: An experienced software engineer with 7+ years of experience.
Title: Design Advisor
Role Design Direction
Commitment: Part-time
LinkedIn: https://www.linkedin.com/in/raphaelhode/
Bio: Raphael is a Strategic Designer with a passion for social innovation and sustainability. After a few years in advertising agencies in Paris, Raphael moved to Tokyo in 2015 and joined Designit, a global strategic design firm. At Designit Raphael worked on growing a team and helping some of Japan’s most ambitious companies make innovation happen, leading him to endorse a variety of roles across UX design, service design, business design, and strategy.
In parallel, he has been passionately engaging in activities related to sustainability and social innovation: giving talks and workshops, mentoring early-stage social founders, and eventually co-founding a social venture. Today, he spends most of his time working with incredible social entrepreneurs to help them define, design, and launch visionary products that contribute to creating a more sustainable society.
To supplement our core team, we maintain a reserve of skilled freelancers, ready to contribute at short notice. Our talent marketplace, Socious, is a hub for over 8,000 individuals, many of whom could potentially assist in this project, if required.
Please find below a detailed breakdown of our budget, including the allocation of people and hours to each task. We have calculated the cost at $50 per person per hour. The current conversion rate for ADA-USD is 0.44 at the time of writing.
Executive summary:
Total Cost: 489,091 ADA
Milestone 1: 36,364 ADA
Milestone 2: 53,636 ADA
Milestone 3: 110,909 ADA
Milestone 4: 116,364 ADA
Milestone 5: 114,545 ADA
Final Milestone: 57,273 ADA
Please find the details of the breakdown here:
https://docs.google.com/spreadsheets/d/1Bap8H9wiR_aKb7QjbAqnM3atGtXihnAe8Z9Inyx_r6k/edit?usp=sharing
This project aims to enhance the Cardano ecosystem by improving the Atala identity wallet SDK and creating a no-code Self-Sovereign Identity platform. Both deliverables are designed to simplify digital identity management, enhance security, and ease the process of issuing and verifying credentials. The budget, based on empirical data and industry standards, is set at a competitive rate to ensure cost-effectiveness while delivering high standards of professionalism and expertise. The team, with a proven track record of onboarding 8,000 individuals to the Cardano network, is committed to transparency and continuous engagement with the community.
We believe that this project offers great value for money within the Cardano ecosystem for the following reasons:
In conclusion, the project's cost reflects a balanced approach that prioritizes quality, market alignment, and value addition to the Cardano ecosystem. Our detailed and prudent budgeting, combined with our commitment to community engagement and transparency, ensures that the project provides excellent value for money.