CardanoSmartVerify: Securing Plutus Smart Contracts with Formal Verification

[GENERAL] Name and surname of main applicant

Beamlak Mohammed Ali

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

Individual

[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)

Develop CardanoSmartVerify, an open-source formal verification tool for Plutus smart contracts, providing automated tools to verify correctness and security, enhancing confidence and adoption.

[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.”

we depend on integrating with the Plutus development environment and the Cardano blockchain infrastructure for smart contract verification.

[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 entire formal verification framework will be open-source, hosted on GitHub, and available for community contributions. We encourage developers to audit and extend the tool’s capabilities.

[METADATA] Horizons

Infrastructure

[SOLUTION] Please describe your proposed solution

We are solving the problem of insecure and unreliable smart contracts on Cardano by creating CardanoSmartVerify, an open-source formal verification framework for Plutus smart contracts. This tool will provide developers with automated verification processes that generate mathematical proofs, ensuring that smart contracts behave correctly under all conditions and reducing the risk of bugs, vulnerabilities, and exploits.

Why this Approach?

We believe formal verification is the most rigorous way to ensure the security of smart contracts, especially for high-stakes applications like DeFi, governance, and NFTs. Our approach will automate the verification process, integrating it seamlessly into the Plutus development environment, making it accessible for developers without deep formal methods expertise.

Who Will Benefit?

• Developers: By providing an easy-to-use verification tool, developers can ensure their smart contracts are secure, reducing the risk of financial loss or system compromise. This improves confidence in deploying contracts on Cardano.
• Users and Institutions: Secure smart contracts mean safer decentralized applications, protecting user assets and encouraging institutions to adopt Cardano for mission-critical applications.
• Cardano Ecosystem: By improving the security of smart contracts, we enhance the entire Cardano ecosystem, driving adoption in critical sectors like DeFi, DAOs, and NFTs.

Proving Impact:

We will measure our impact by:

• Tracking the number of verified contracts using CardanoSmartVerify.
• Gathering feedback from developers during the beta phase.
• Monitoring the number of projects and dApps integrating our solution.

Unique Features:

• Automated Formal Verification: CardanoSmartVerify automates the complex task of proving smart contract correctness, making it accessible to more developers.
• Pre-built Templates: We will offer verification templates for common smart contract types like DeFi protocols, NFTs, and DAOs, enabling faster and easier adoption.
• Open Source: Our project will be fully open-source, allowing the Cardano community to contribute, audit, and improve it over time.

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

. Positive Impact on the Cardano Community:

• Increased Security and Trust: By providing developers with tools to formally verify their Plutus smart contracts, we reduce vulnerabilities, prevent exploits, and protect user assets. This will build confidence among developers, users, and institutions, encouraging the use of Cardano for mission-critical applications in sectors like DeFi, DAOs, and NFTs.
• Accelerated Adoption of Smart Contracts: With the ability to verify the correctness of smart contracts, developers will feel more secure deploying applications on Cardano. This will lead to a higher volume of secure, reliable decentralized applications (dApps), boosting overall ecosystem growth.
• Cardano Ecosystem Leadership in Security: Formal verification is a cutting-edge approach to smart contract security. By pioneering this solution, Cardano can establish itself as a leader in blockchain security, attracting more developers and projects seeking a secure platform for high-stakes applications.

2. Measuring Impact:

We will use both quantitative and qualitative methods to assess the impact of CardanoSmartVerify:

• Number of Verified Smart Contracts: Track the number of contracts that use CardanoSmartVerify for formal verification.
• Developer Adoption and Feedback: During the beta phase, we will gather qualitative feedback from developers to ensure the tool is effective and user-friendly.
• Increased dApp Deployment: Monitor the number of new dApps and projects that integrate formal verification, indicating the broader adoption of secure development practices within the Cardano ecosystem.
• Community Contributions: Track contributions to the open-source project and how many developers extend or enhance the tool.

3. Sharing Outputs and Opportunities:

• Open-Source Availability: All code, verification templates, and documentation will be open-sourced and hosted on GitHub, allowing the community to contribute, audit, and improve the project.
• Educational Resources: We will create user-friendly documentation and tutorials to help developers understand and adopt formal verification for their projects.
• Community Outreach: We will share updates, success stories, and tutorials through Cardano-focused channels such as Telegram, Discord, and forums. We will also engage in workshops and hackathons to demonstrate the use of CardanoSmartVerify.

[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 the necessary skills, experience, and accountability measures to successfully deliver CardanoSmartVerify and ensure its impact on the Cardano ecosystem.

1. Team Expertise and Capability:

• Blockchain Development Expertise: Our team consists of experienced blockchain developers who have successfully developed decentralized applications (dApps) and smart contracts on Cardano. We are familiar with Plutus and its architecture, allowing us to seamlessly integrate formal verification into the existing development workflow.
• Formal Verification Specialists: We also have formal verification experts who have worked on securing smart contracts and decentralized systems using mathematical proofs. Their deep understanding of formal verification processes is essential for creating a reliable verification tool that meets high-security standards.
• Previous Project Experience: We have a track record of successfully delivering decentralized solutions and security-focused projects within the blockchain space. This includes working on projects that required strong technical precision and accountability, proving our capability to handle complex projects like CardanoSmartVerify.

2. Steps to Ensure Feasibility:

• Research and Validation Phase: In the initial phase, we will conduct thorough research on existing verification tools and formal methods. This research will help validate our approach, ensuring that we build on proven concepts while adapting them to the specific needs of the Cardano ecosystem.
• Prototype and Community Feedback: We will develop a working prototype of CardanoSmartVerify and engage with developers in the Cardano community for feedback. This allows us to test the tool in real-world conditions, validate its effectiveness, and refine the features based on user input.
• Technical Audits: To ensure the robustness of the formal verification framework, we will engage third-party security experts to audit the code and verification process. This will further validate the technical feasibility and reliability of the solution.

3. Trust and Accountability in Fund Management:

• Transparent Budgeting: We have allocated clear and well-justified costs for development, testing, marketing, and community engagement. Our budget includes provisions for each phase of the project, ensuring that funds are properly distributed based on milestones.
• Milestone-Based Funding: We will adhere to a milestone-based funding system, where progress and deliverables will be publicly shared before further funds are released. This ensures full accountability for every phase of the project.
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[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Research and Architecture Design (Months 1-2)

• Tasks:
• Conduct research on existing formal verification tools and approaches.
• Design the architecture of CardanoSmartVerify and its integration with Plutus.
• Outline key security checks and verification models for Plutus contracts.
• Acceptance Criteria:
• Detailed documentation of research findings.
• Architectural design and system blueprint completed and shared with stakeholders.
• Deliverables:
• Research report and architecture blueprint.
• Community update on progress.

Core Verification Framework Development (Months 3-5)

• Tasks:
• Develop the core verification engine for smart contract security checks.
• Ensure compatibility with Plutus and the Cardano blockchain infrastructure.
• Initial testing of the verification engine on sample contracts.
• Acceptance Criteria:
• Verification engine developed and successfully integrated with sample Plutus contracts.
• Verification results demonstrate functional correctness and security assessments.
• Deliverables:
• Working version of the verification engine.
• Documentation on engine functionality and security checks.

User Interface and Developer Toolkit (Months 6-7)

• Tasks:
• Develop a user-friendly interface to make verification accessible for developers.
• Create open-source templates for common contract types (e.g., DeFi, NFTs, DAOs).
• Integrate the interface with the Plutus development environment.
• Acceptance Criteria:
• User interface designed, tested, and integrated with the verification engine.
• Pre-built templates for contract verification completed.
• Deliverables:
• Fully functional interface and developer toolkit.
• Templates published for community use.
• Documentation for developers to integrate CardanoSmartVerify into their workflow.

Beta Testing and Community Feedback (Months 8-9)

• Tasks:
• Launch the beta version of CardanoSmartVerify for testing by the Cardano developer community.
• Gather feedback from beta testers to refine the tool’s usability and performance.
• Fix any bugs or issues based on feedback.
• Acceptance Criteria:
• Beta version released with at least 10+ developers testing the tool.
• Feedback gathered and incorporated into the tool.
• Deliverables:
• Beta testing report, including feedback and insights.
• Updates to the tool based on feedback.

Full Launch and Open-Source Release (Months 10-12)

• Tasks:
• Finalize the verification engine, user interface, and developer toolkit.
• Complete user documentation and tutorials for using CardanoSmartVerify.
• Release the full version as open-source software on GitHub.
• Produce a close-out report and video summarizing the project’s impact.
• Acceptance Criteria:
• Full version of CardanoSmartVerify launched, with documentation and user support.
• Close-out report and video completed.
• Deliverables:
• Full open-source release on GitHub.
• Comprehensive user documentation and tutorials.
• Final report and project video shared with the Cardano community.

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

Our team brings together expertise in blockchain development, formal verification, user experience design, and community engagement. Below are the key members, their roles, and relevant profiles.

1. Beamlak Mohammed Ali – Project Lead & Blockchain Developer

• Role: Oversee the overall project development, ensuring that CardanoSmartVerify is built to meet security and usability standards. Lead the development of the core verification engine and ensure seamless integration with Plutus.
• Responsibilities:
• Develop the core formal verification framework.
• Ensure compatibility with the Plutus development environment.
• Manage the project timeline and milestones.

.Linkedin:https://www.linkedin.com/in/beamlak-mohammed-190643207/

1. Tinsae Alako(Formal Methods & Security Specialist)

• Role: Lead the formal verification process design, ensuring that the smart contract verification engine adheres to rigorous security protocols and mathematical correctness.
• Responsibilities:
• Design the verification algorithms and proof generation processes.
• Develop open-source templates for common contract types.
• Validate the verification engine’s accuracy and reliability.
• Linkedin: https://www.linkedin.com/in/tinsae-beyene-949882114/

3Tinsae Beyene. – User Interface Designer

• Role: Design and develop the user interface for CardanoSmartVerify to ensure a smooth and intuitive experience for developers.
• Responsibilities:
• Build a user-friendly interface for developers to easily input smart contracts and access verification results.
• Ensure the UI is integrated with the Plutus development environment.
• Create a seamless flow from contract submission to verification reporting.
• LinkedIn: https://www.linkedin.com/in/tinsae-beyene-949882114/

Additional Team Members

4. Outreach and Adoption Specialist

• Role: Manage community engagement, outreach, and promotion of CardanoSmartVerify within the Cardano developer ecosystem.
• Responsibilities:
• Promote the tool through developer channels (Telegram, Discord, etc.).
• Organize beta testing and gather feedback from the developer community.
• Handle social media, forums, and online outreach to ensure adoption.

5. Technical Support Developer

• Role: Assist with the development and testing of the CardanoSmartVerify engine and ensure continuous improvement.
• Responsibilities:
• Support the core framework development.
• Conduct extensive testing and bug fixing based on beta feedback.

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

1. Research and Architecture Design (20,000 ADA)

• Formal Verification Research: 10,000 ADA
• Costs associated with conducting research on existing verification tools and approaches. This includes team compensation for research and architecture design.
• Technical Blueprint & Architecture Design: 10,000 ADA
• Development of the system blueprint and architectural design for CardanoSmartVerify.

2. Core Framework Development (40,000 ADA)

• Blockchain Development: 25,000 ADA
• The main cost of developing the formal verification engine and ensuring compatibility with Plutus smart contracts. This covers development hours and testing.
• Open-Source Contract Templates (DeFi, NFTs, DAOs): 10,000 ADA
• Creation of pre-built verification templates for common contract types to accelerate developer adoption.
• Testing Environment Setup: 5,000 ADA
• Setup costs for creating a testing environment that mirrors the Plutus development workflow.

3. User Interface and Developer Toolkit (30,000 ADA)

• UI/UX Design: 15,000 ADA
• Development of a user-friendly interface for developers to input contracts and access verification reports.
• Developer Toolkit and Documentation: 10,000 ADA
• Creation of easy-to-use developer toolkits and templates, along with user documentation for seamless integration.
• Integration with Plutus Development Workflow: 5,000 ADA
• Ensuring that CardanoSmartVerify integrates smoothly with the Plutus development environment.

4. Beta Testing and Community Feedback (20,000 ADA)

• Beta Launch & Developer Engagement: 10,000 ADA
• Costs associated with launching the beta version of CardanoSmartVerify and gathering feedback from the community.
• Bug Fixes & Feature Refinements: 5,000 ADA
• Addressing bugs and feedback gathered during the beta phase to refine the tool before the full launch.
• Security Audits: 5,000 ADA
• Hiring third-party auditors to review the security of the verification engine and ensure robustness.

5. Full Launch & Marketing (25,000 ADA)

• Full Open-Source Release: 10,000 ADA
• Final preparation for the open-source release of the tool, including user guides, GitHub repository setup, and tutorials.
• Marketing and Community Engagement: 10,000 ADA
• Promoting the full launch through developer forums, social media campaigns, and targeted outreach to the Cardano developer community.
• Final Video & Project Close-Out Report: 5,000 ADA
• Producing a professional video summarizing the project’s impact and a detailed close-out report to be shared with the Cardano community.

6. Project Management, Legal, and Compliance (15,000 ADA)

• Project Management & Coordination: 10,000 ADA
• Overseeing the project’s execution, managing timelines, and ensuring milestone completion.
• Legal & Compliance: 5,000 ADA
• Ensuring all legal obligations are met, including potential intellectual property, licensing, and regulatory compliance with crypto regulations.

7. Additional Costs and Contingency (10,000 ADA)

• Contingency Fund: 10,000 ADA
• Reserved for unforeseen costs such as extended development time, additional security audits, or community engagement initiatives.

Total Requested Budget: 160,000 ADA

Alternative Funding (If Required):

If additional funding is required beyond the 160,000 ADA, we will explore partnerships with blockchain security firms or apply for further grants within the Cardano ecosystem. We will also seek contributions from the open-source community for enhancements beyond the initial scope.

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

CardanoSmartVerify represents excellent value for money for the Cardano ecosystem, as it addresses a critical need: securing Plutus smart contracts through formal verification. By investing in this project, we significantly enhance the security, trustworthiness, and reliability of smart contracts deployed on Cardano, which is crucial for the growth of sectors like DeFi, governance, and NFTs.

Why the Project Offers Strong Value:

1. Mitigating Risk and Protecting Assets:

• Formal verification is a proven method to ensure the correctness of smart contracts, reducing the likelihood of bugs or exploits. This protection is invaluable, especially in high-stakes applications like DeFi, where a single bug could result in financial loss.
• The costs of implementing this verification framework are small in comparison to the potential savings from avoiding smart contract vulnerabilities. By preventing major security incidents, CardanoSmartVerify will save the Cardano ecosystem millions in potential losses.

1. Accelerating Developer Adoption:

• By providing open-source tools and templates, CardanoSmartVerify makes it easier for developers to secure their contracts, thereby increasing confidence in deploying on Cardano. This leads to more developers using the platform and creating secure applications, accelerating the growth of Cardano's dApp ecosystem.
• The costs related to UI/UX design and developer toolkits are critical to ensuring adoption. By creating a user-friendly experience, we lower the technical barrier, making it accessible to a broader range of developers.

1. Cost Justification and Industry Standards:

• Development Costs: The costs we have allocated for core development are competitive with industry rates for blockchain development and formal verification experts. For example, blockchain developers typically charge $75-$150 per hour, and formal verification specialists often require similar or higher rates due to their specialized expertise. Our development budget reflects this, ensuring we attract skilled talent to deliver a high-quality product.
• Security Audits: The cost of third-party security audits is a necessary investment to ensure the robustness of the formal verification tool. Considering the financial and reputational risks associated with insecure smart contracts, this is a cost-effective safeguard.

1. Long-Term Impact and Sustainability:

• CardanoSmartVerify is designed to be a long-term, open-source project. Once the tool is released, it will continue to provide value by securing future smart contracts deployed on Cardano. This will foster trust in the ecosystem and attract both developers and users to the platform.
• The open-source nature of the project also allows for future contributions and improvements from the community, ensuring that the tool evolves with the needs of the ecosystem without requiring continuous funding.