Compliant CFO Tech Stack for Global Enterprise Adoption

[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] Please specify how many months you expect your project to last (from 2-12 months)

4

[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 proposes a new Cardano solution that syncs on-chain txn data into ERP (i.e. Oracle NetSuite, Quickbooks) Enabling real-time enterprise-level financial reporting & management of digital assets

[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

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

• Bitwave's SOC 1 & 2 Certification will cover Cardano Node data (or an alternative dataset), allowing for direct validation of on-chain transaction data from the source and ensuring data integrity and security for accounting and compliance purposes.
• The SOC reports validate Bitwave as a trusted source of financial data for public auditors and streamline the public audit process for publicly traded enterprises.

[METADATA] SDG rating

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

[SOLUTION] Please describe your proposed solution

Bitwave plans to set up a Cardano node or access relevant data sets to develop a customized indexer to extract on-chain transactional data. This data extraction process is crucial for enterprise adoption and compliant financial operations. 

Bitwave will maintain and update the indexer with reliable uptime and quality service level agreements (SLAs). 

Traditional ERP Integration Complexities

Challenge Solved

• Traditional ERP systems aren't designed to handle complex digital asset transactions, which can lead to a disconnect between blockchain activities and standard financial operations.

Bitwave Solution 

• Bitwave offers a solution to integrate and seamlessly transfer Cardano on-chain transaction data into ERP systems such as Oracle NetSuite, Quickbooks, Xero, Sage, and more. Automated data syncs ensure that digital asset transactions are accurately reflected in the company's financial ledger. It provides real-time visibility and control over digital assets, enabling efficient and accurate financial management.

High-Volume Transaction Capabilities

Challenge Solved

• As businesses scale, they encounter difficulties managing increasing digital asset transactions in block explorers and spreadsheets. 

Bitwave Solution 

• Bitwave scales with unmatched capabilities to organize and automate high-volume transaction data. This allows businesses to manage their growth without being overwhelmed by the administrative burden of processing and categorizing each transaction.

Regulatory Compliance

Challenge Solved

• Navigating the complex landscape of financial regulations such as IFRS and GAAP is a significant challenge, especially involving digital assets.

Bitwave Solution

• Bitwave enables audit-proven reporting capabilities. By automating compliance reporting, Bitwave helps global enterprises easily adhere to accounting standards and regulatory requirements.
• Bitwave & Deloitte Strategic Alliance: Deloitte's comprehensive expertise in regulatory compliance, auditing, and financial advisory ensures that enterprises building on Cardano cannot only interact with DeFi but also adhere to the evolving global financial regulations.

Cross-Border Payments

Challenge Solved

• Accounting for FX conversion and cross-border payments is often complex and costly for businesses. Fluctuations in exchange rates can significantly impact costs, and traditional banking systems often involve slow and expensive transaction processes.

Bitwave Solution 

• Bitwave addresses the accounting complexities of digital assets, FX conversions, and cross-border payments. Our platform provides enterprises with a solution that streamlines these processes and allows them to use the Cardano blockchain compliantly. 

Audience & Benefits

CFOs & Finance Teams

• Bitwave streamlines digital asset management so CFOs can focus on strategic treasury management rather than transactional details.
• Bitwave ensures finance teams maintain compliant books, accurate financial reporting, and trust in their operations.

Accountants, Bookkeepers, and Auditors - Bitwave Certified Users

• Accountants can conduct thorough financial reviews using detailed transaction histories and valuation records.
• Projects benefit from a simplified audit process by having a single source of truth for digital asset transactions.

Fortune 100 Enterprises to Early-Stage Startups Managing Digital Assets

• The ability to efficiently handle high transaction volumes without increased administrative burden. 
• Improved financial reporting for better decision-making and proactive asset management.
• Integration of digital assets transactions into their traditional ERP systems.

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

Business Development & Strategic Partnerships

Bitwave proposes a strategic partnership with the Cardano Foundation. This partnership aims to identify and onboard qualified enterprise entities (i.e. Financial Institutions, Fortune 100 Companies, and Nonprofits) to ensure that our solution has 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.

Measuring Impact: 

• Total # of enterprises accounting for Cardano transactions 
• Types of enterprises onboard (i.e. Banks, Non-Profits, Crypto-Native Projects)
• Total # of Cardano ecosystem partnerships 

Onboarding Accounting Professionals to the Cardano Ecosystem

Bitwave aims to attract new industries to the Cardano ecosystem by offering practical benefits. However, our team must provide timely product and regulatory updates to educate Accountants and Bookkeepers on Bitwave's enterprise use cases.  

Measuring Impact: 

• # of CPE Hours Issued during the product release webinar and total number of attendees
• # of BitwaveU On-Demand Course views & CPE Hours Issued
• # of Bitwave Certified Users Accounting for Cardano transactions 

Network Effects and Ecosystem Growth:

Our platform simplifies enterprises' direct onboarding by accurately accounting for Cardano transactions. This makes mass enterprise adoption feasible, increasing the network's activity and utility. The increased activity may attract more users, developers, and entrepreneurs, promoting network effects and fueling the ecosystem's growth and innovation.

Measuring Impact

• # of Total Cardano Transactions Accounted for through Bitwave 
• # of Total Cardano NFTs Accounted for through Bitwave 
• Total TVL Accounted for through Bitwave

[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?

Founded in 2018 by technology veteran entrepreneurs Pat White and Amy Kalnoki, our team brings extensive experience with over 70 successful integrations, including blockchain networks, DeFi protocols, ERP systems, custodians, and centralized exchanges. 

Unique Industry Insights

Bitwave understands the unique challenges faced by crypto-native projects and Fortune 500, often different from those faced by individual users. 

• ERP Automation and Integrations: The platform can automate complex processes and seamlessly integrate with existing financial systems. This makes it an invaluable tool for enterprises adopting digital assets without disrupting their operations.
• End-to-End Enterprise Scalability: Unlike competitors that may focus exclusively on crypto-native projects or small and medium-sized enterprises (SMEs), Bitwave caters to a wide range of enterprise use cases.

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

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

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..”

70+ Enterprise-Grade & Audit-Proven Integrations

30+ Blockchain Protocols:

Strategic Partnership

Strategic Partnership

Strategic Partnership

Case Study: BetDEX

Strategic Partnership

15+ Exchanges & Custodians:

Strategic Partnership

20+ DeFi Protocols:

Bitwave's Cardano Integration Proposal focuses exclusively on data extraction; it does not handle payments or custody assets. 

Bitwave allows enterprises to connect their wallets to our platform, validating smart contracts linked to wallet addresses to account for DeFi strategies and treasury management accurately.

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

Milestone 1 - Integration Research & Discovery 

Bitwave has started the required research to integrate with Cardano. Our Tech team met with Cardano team member Michiel to discuss the integration strategy and resources. Bitwave is now prepared to assign developer resources to begin the integration process as soon as the grant is approved by the Cardano community.

Activities

• Identified high-quality data source (e.g., node or alternative data set) for Cardano txn data
• Understand Cardano-specific nuances, including transaction types, contract call types, token types, events, DeFi, Staking, and other transactional nuances for blockchain indexing.
• Two-hour productive tech meetings between Bitwave's CTO, Director of Blockchain Services, and Cardano's tech team.

Output

Integration Research & Discovery Documentation

• This document will comprehensively cover all aspects of the Cardano integration and data sources and summarize any potential challenges and solutions identified during the integration process.

Cardano Action Plan:

• This plan will outline each phase of the Cardano integration development. It will list all required resources and a timeline that specifies key milestones and deadlines.

Acceptance Criteria 

• Completeness of Design Documentation:
• The design documentation must provide an overview of the Cardano integration's technical and operational aspects.
• Detail and Clarity in the Action Plan:
• The action plan must provide an overview of the necessary steps, required resources, and timeline, ensuring each development phase is well-defined and actionable.

Evidence

Bitwave will create a publicly accessible Google Doc titled "Bitwave Cardano Integration - Milestone 1"

• Confirmation of Data Source: 
• Verifying the source of Cardano's on-chain transaction data, confirming whether it is from a hosted Cardano node or an alternative dataset.
• Internal Confluence Timeline: 
• A screenshot from Bitwave's internal Confluence displays the development timeline for the Cardano product, which aligns with the project's overall roadmap.
• High-Level Architecture Diagram: 
• This links to a publicly accessible diagram illustrating the integration's high-level architecture and how Cardano fits into the existing infrastructure.
• Blockchain Integration Listing: 
• Bitwave's public technical documentation will be updated to reflect Cardano's integration status as "In Beta."
• Complete Design Documentation: 
• A fully detailed document provides stakeholders a clear understanding of the integration's scope and operational framework. 

Milestone 2 - Data ETL Pipeline & Staging Deployment

Activities

• Setup up Bitwave self-hosted Cardano node (or access to the alternative dataset) 
• Historical data backfill
• Build data-ingest pipeline from data source into Bitwave’s datastore
• Write transformation logic to convert raw data into an indexed and curated data set usable by Bitwave system
• Perform data quality checks and testing of raw and indexed data to ensure completeness and accuracy of transactional data 
• Deploy Cardano data within the Bitwave UI and web application in a staging environment
• Perform end-to-end user functional tests, with the ability to “add a Cardano wallet” into Bitwave and perform accounting.

Output

• Cardano Integration for Internal and Early Beta Users: 
• This feature will be available to a limited group of internal and beta users for initial testing and feedback.
• Bitwave Self-Hosted Cardano Node or Access to an Alternative Dataset: 
• Ensure data accuracy and reliability with a dedicated Cardano node or alternative dataset.
• ETL Data Pipeline:
• Development of an Extract, Transform, Load (ETL) pipeline to efficiently transfer raw data from Cardano to Bitwave.
• Curated and Indexed Dataset of Cardano Transactions: 
• A dataset has been processed, organized, and indexed by Bitwave to improve user access and interaction with Cardano transactions.

Acceptance Criteria 

• Cardano Integration Access: 
• Internal and early beta users should access and interact with the Cardano integration features within the Bitwave platform without significant issues.
• Node Operation or Dataset Utilization: 
• The Cardano node or alternative dataset should be operational and integrated into the Bitwave system, with data flowing into the ETL pipeline.
• ETL Data Pipeline Functionality: 
• The pipeline will successfully extract, transform, and load data from Cardano into Bitwave, with no critical data handling and processing errors.
• Data Accuracy and Organization: 
• The dataset will be accurately indexed and curated, reflecting all necessary transaction details and supporting advanced queries and reports.

Evidence:

Bitwave will create a publicly accessible Google Doc titled, Bitwave Cardano Integration - Milestone 2

• Screenshot of the Sandbox Cardano UI: Bitwave will provide a screenshot to demonstrate the functional integration of the Cardano UI within the sandbox environment.
• Sample of the Sandbox Dataset: Bitwave will share a sample of the sandbox dataset for review, illustrating the type and structure of data being handled.
• Public Access to the Swagger Endpoint: A link to the public Swagger endpoint for token address resolution will demonstrate API interaction capabilities. 

Activities:

• Deployment of Cardano data into the production environment
• Integration of Cardano assets (native and tokens) pricing data sources to Bitwave
• Integration of Cardano assets to reports within Bitwave:
• Balance report
• Gain/Loss Reports
• Inventory Reports
• Journal Entry reports
• Integration of Cardano assets to core accounting functionalities within Bitwave:
• Transaction categorization
• ERP transactional sync
• Report generation

Outputs

• Cardano Accounting Capabilities Live: 
• Cardano functionality will be fully integrated as a core feature within the Bitwave platform for all existing 300+ enterprise clients.
• Comprehensive Pricing for Cardano Assets: 
• Pricing for Cardano assets, including ADA and native tokens, will be fully available, enhancing financial analysis and reporting.
• Cardano Transactional Data Integration: 
• Bitwave's reporting and core accounting functionalities will fully integrate Cardano transactional activities, ensuring seamless access and utilization.
• Dynamic Pricing for Cardano Tokens: 
• Bitwave will maintain and provide access to up-to-date pricing for Cardano tokens.

Acceptance Criteria 

• Visible Functional Integration: 
• Bitwave dashboard will visibly support Cardano integration, displaying functionalities relevant to Cardano such as transaction tracking, treasury management, and financial reporting.
• Transaction Traceability: 
• Bitwave clients can link and verify transactions directly to a Cardano blockchain explorer within the Bitwave interface, ensuring transparency and traceability.
• Operational Transactional Data: 
• Transactional data for ADA and native Cardano tokens will be live, fully operational within the Bitwave system, and accurately reflected in all relevant financial reports and accounting functionalities.

Evidence

Bitwave will create a publicly accessible Google Doc titled Bitwave Cardano Integration - Milestone 3 

• Live UI/UX Support:
• Screenshots demonstrating live UI/UX support for Cardano on the Bitwave dashboard, including sections showcasing live financial reporting and asset management.
• Transaction Traceability:
• Screenshots showing how transactions are linked back to the Cardano explorer, providing a clear audit trail.
• Live Transactional Activity:
• Evidence of live transactional activity for $ADA and native tokens, reflected in Bitwave’s reports and accounting functionalities.

Milestone 4 - Final Deliverables: Proposed Capabilities & CPE Webinar

Bitwave will host a one-hour Continuing Professional Education (CPE) webinar. This session is open to all and will detail Cardano's on-chain accounting capabilities using Bitwave. It will provide practical insights into Bitwave's integration and operational capabilities.

Output

• 1-Hour CPE Webinar
• This webinar will be comprehensively planned and designed to cover essential aspects of new accounting capabilities for Cardano transactions. It is tailored to meet the educational needs of Web3 Founders, Investors, Accountants, and Bookkeepers.

Acceptance Criteria

• Webinar Execution:
• This webinar must be hosted live and recorded covering the specified topics and engaging with the Cardano community to clarify their queries about Cardano's integration into Bitwave.
• Content Quality:
• The content will be accurate, informative, and relevant, providing clear insights into how Cardano transactions are managed within Bitwave and their implications for financial reporting and compliance.

Evidence

• Bitwave University Listing:
• The webinar will be available on Bitwave University, providing easy access for those who couldn't attend the live session. This allows them to benefit from the content at their own pace. Furthermore, it offers real-world value to accountants seeking to earn CPE credits.
• Official Tech Documentation Update:
• Cardano will be officially listed as a supported blockchain on Bitwave's technical documentation, affirming its full integration and support within the Bitwave platform.
• Example Evidence: Bitwave Technical Documentation

  

Monitoring & Maintenance

On-Going Activities

• Monitoring of any Cardano upgrades or downtime
• Maintenance & upkeep of the Cardano node or an alternative dataset

Deliverables

Bitwave Resources (Annually)

• 99.99% up-time SLA for Cardano integration

Blockchain Data Engineer

• 10 - 30 hours / Annually 

Milestone 5 - 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: Pat oversees the entire integration process and manages the development team, ensuring technical alignment with project goals as our Chief Technology Officer. Additionally, he will 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

Total Amount Requested: ₳300,000

• Based on the average price of the last 30 days retrieved from CoinMarketCap on May 9th, 2024, the pricing for ADA is $0.4709 USD.

Milestone 1: Research & Discovery 

Bitwave Resources:

• Blockchain Technical Product Manager: 50 hours of research.

Costs:

• Blockchain Technical Product Manager: 50 hours x $200/hr = 21,235 ADA 

Milestone 2: Build & Testing by Engineering Team

Resources:

• Blockchain Data Engineering Team: 80 hours allocated.

Costs:

• Blockchain Data Engineering Team: 80 hours x $250/hr = 42,471 ADA 

Milestone 3: Product Launch and Release Management

Resources:

• Product Manager: 100 hours for product/project management.
• Accounting Core-Service Engineer: 160 hours for development and testing.
• Blockchain Data Engineer: 30 hours for development and testing.

Costs:

• Product Manager: 100 hours x $200/hr = 42,471 ADA
• Accounting Core-Service Engineer: 160 hours x $250/hr = 84,943 ADA 
• Blockchain Data Engineer: 30 hours x $250/hr = 15,926 ADA 

Milestone 4: Annual Account Maintenance & 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.

Costs:

• CPA Education Specialist: 40 hours x $70/hr = 5946 ADA 
• Marketing Specialist: 30 hours x $40/hr = 2549 ADA 
• Content Developer: 30 hours x $50/hr = 3185 ADA 
• NASBA Registration: 3185 Annually
• CPE Hour Subsidies: $50 x 50 CPE Hours Avg. = 5309 ADA 

Technical Resources:

• Blockchain Data Engineer: 30 hours annually for maintenance.

Costs:

• Blockchain Data Engineer: 30 hours x $250/hr = 15,926 ADA / Annually 

Milestone 5 Close-out Report & Recap Video

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 ADA 
• Project Manager: 10 hours x $100/hr = 2123 ADA

Business Development and Marketing

Objective:

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

Resources:

• Business Development Manager: 50 hours for strategy development and partnership outreach.
• Marketing Team: 80 hours for creating marketing materials and campaign execution.

Costs:

• Business Development Manager: 50 hours x $100/hr = 10,617 ADA 
• Marketing Team: 80 hours x $100/hr = 16,988 ADA 

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

Costs for Node Hosting and Data Processing [Annual Bitwave Commitment]

• Objective: This cost encompasses hosting blockchain nodes, which are necessary for real-time data collection and interaction with the blockchain.
• Annual Avg. Costs: 
• 76,449 ADA per Cardano node 

Total Cost Summary = 353,570 ADA

• One-Time Integration Cost = 258,010 ADA 
• Annual Developer Resources = 15,926 ADA 
• Annual Node Hosting Fees = 76,449 ADA 
• Annual NASBA Registration Fee = 3,185 ADA 
• Milestone 1 = 21,235 ADA 
• Milestone 2 = 42,471 ADA 
• Milestone 3 = 143,340 ADA 
• Milestone 4 = 16,989 ADA 
• 19,111 ADA [Annually*] 
• Milestone 5 = 33,975 ADA
• 76,449 ADA [Annually*] 

Final Requested Grant Reward = 300,000 ADA