Cardano Blockchain-based Product Authentication App Combine With NFC Technology

[GENERAL] Name and surname of main applicant

Quang Daniel

[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

Yes

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

We make an NFC chip and add to this an encrypted, auditable link between the NFC and the full manufacturing history (on Cardano blockchain) of the specific product. User can check it using our app.

[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

Fully open

[METADATA] Horizons

Manufacturing

[SOLUTION] Please describe your proposed solution

The problems

The rising need for enhanced security on products like premium spirits, cosmetics, luxury fashion, and prescription drugs stems from the ongoing fight against increasingly sophisticated counterfeiters. The United Nations agency leading the charge against transnational organized crime highlights the gravity of the situation: "The production and sale of counterfeit goods is a global, multi-billion-dollar issue with significant economic and health consequences for governments, businesses, and consumers."

The global counterfeit market has ballooned, doubling from $200 billion in 2008 to $509 billion in 2019—amounting to 2.5% of global trade, according to the U.S. Patent and Trademark Office. Counterfeiting on this scale leads to job losses in manufacturing, endangers the lives of consumers purchasing food and pharmaceuticals, and denies innovators the rightful benefits of their work.

The solution:

We make a special seal that knows if it has been tampered with. We adds to this an encrypted, auditable link between the seal and the full manufacturing history of the specific product to which the seal is attached. Users can check the history using a free app on their phone that can instantly verify a product’s authenticity.

The seal

A wafer-thin label with a near-field communication (NFC) chip can be affixed to products, incorporated into cards, or embedded within items or their packaging. For instance, it can be integrated into a bottle cap or sewn into a handbag. You might recognize the NFC logo from bank cards. This technology enables devices to share information by simply touching or bringing them close together. Similar to the microchips used in pet identification, the smart seal requires no power, remaining dormant until activated by a reader. The reader's signal generates a small electric current in the chip's antenna, providing enough energy for the chip to transmit its stored data.

The blockchain

Every item is associated with a unique entry on Cardano. That entry cannot be altered, but can be read easily, and can be used as part of an auditing system. Each entry comprises the cryptographic hash of the tag’s identifier and links to the product metadata. The metadata, including images, is stored off-chain.

The checking process

If you have a smartphone, you will be able to download the our app from the relevant online store. This application uses a phone’s NFC reader to read the chip and look up the product information on Cardano. Simply touch the phone to the product, and know at once if the product is genuine and learn about its history.

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

1. Increased Adoption of Cardano: Successful implementation of this project could lead to increased adoption of Cardano as a platform for real-world applications. This could attract new users and developers to the Cardano ecosystem.
2. Showcase of Cardano's Capabilities: Demonstrating Cardano's ability to support complex applications like product authentication can help solidify its reputation as a robust and versatile platform.
3. Strengthening Cardano's Reputation: A successful project could enhance Cardano's reputation as a secure, scalable, and user-friendly blockchain platform.
4. Development of New Tools and Services: The project could stimulate the development of new tools and services within the Cardano ecosystem, such as additional authentication solutions or blockchain-based supply chain management tools.
5. Economic Benefits: Increased adoption and development within the Cardano ecosystem could lead to economic benefits for the community, including job creation and increased value for Cardano-related assets.
6. Positive Impact on Industries: The project could have a positive impact on industries that struggle with counterfeiting, such as luxury goods, pharmaceuticals, and electronics. This could lead to increased trust in these industries and boost consumer confidence.

[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 successfully completed 4 funded proposals in fund 8 and 9:

• Haskell Book Vietnamese Translation: https://cardano.ideascale.com/c/idea/62683. Link download: https://bit.ly/Real-World-Haskell
• Haskell Book Vietnamese Translation: https://cardano.ideascale.com/c/idea/63881. Link download: https://bit.ly/Learn-You-A-Haskell-Vietnamese
• Haskell Course for Beginners: https://cardano.ideascale.com/c/idea/62320

https://www.youtube.com/watch?v=kEwg4p3yry4&list=PL6XMhpnl2Hg-gH0fxll273J0sWcAb_Wa3

• Haskell Course for Developers: https://cardano.ideascale.com/c/idea/63880

https://www.youtube.com/watch?v=v8EXjyX5gZs&list=PL6XMhpnl2Hg_f7N-pj3_eU5QMw8QXWuOv&index=1&t=1s

We also have 2 funded proposals in fund 11:

• The decentralized e-commerce platform utilizes Smart Contracts on Cardano: https://cardano.ideascale.com/c/idea/113059
• Live-Coding Haskell: https://cardano.ideascale.com/c/idea/112982

Fund 12:

• Bring Ebay to Cardano: Decentralized Real Product Auction Platform: https://cardano.ideascale.com/c/idea/121774:

We are one of the greatest team in Developer Ecosystem Challenge in fund 8 & 9

All members of our team are experienced and skilled individuals with a background in building and operating banking systems as well as large-scale e-commerce platforms.

Therefore, we are fully capable of executing this project.

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

Output: System Architecture Design (3 months)

Acceptance criteria:

• Research an Design Encrypted mechanism
• Making Encrypted, Auditable link to add to NFC
• System flow from NFC to blockchain
• Input data system
• Storing product history system

Evidence: Diagram on Figma of System Architecture Design

Output: Blockchain-based Product Authentication App Prototype (3 months)

Acceptance criteria:

• Login, Sign up and import wallet
• Product detail
• Tracking product's history
• Input Product's data
• NFC verification

Evidence: Figma's link to Blockchain-based Product Authentication App Prototype

Output: The NFC seal creation (3 months)

Acceptance criteria:

• NFC seal design
• Making NFC process
• Add Encrypted, Auditable link to NFC
• Connecting NFC to the App

Evidence: Picture and video of using NFC in real-life

Output 1: Project close-out report

Acceptance criteria:

• List of project KPIs and how the project addressed them
• Key achievements
• Key learnings
• Next steps for the product or service developed
• Final thoughts/comments
• Links to other relevant project sources or documents.
• Link to Close out video

Evidence: Project close-out report (PDF)

Output 2: Project close-out video

Acceptance criteria:

• The problems and our solutions
• Demonstration of the project outputs
• KPI that we've achieved
• The issues when we doing this proposal
• What have we learn after doing this proposal
• What next? (after we complete this proposal)

Evidence: Project close-out video (link youtube)

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

Mr. Thanh Ngo - Advisor:

• PhD in Economics from Massey University in 2015.
• Works at the School of Aviation, Massey University.
• Expertise in efficiency and productivity analysis in various sectors, including banking, finance, agriculture, and transportation economics.
• Editorial Board member for the International Journal of Financial Studies.
• https://www.researchgate.net/profile/Thanh-Ngo-14

Mr. Vo Minh Tuan - Financial and Legal Expert, Project Financial Manager:

• Over 20 years of experience in US/JP listed and multinational companies.
• Deep knowledge of finance, accounting, IFRS, US-GAAP, SOX, tax, customs, labor, investment, and business law.
• https://www.linkedin.com/in/tuan-vo-8a1557151/

Mr. Tran Thanh Thien - Project Director, System Process Analyst and Designer:

• Software Developer with expertise in Database Warehousing and ERP.
• Specialized in Einvoice solutions and business management software.

Mr. Nguyen Van Minh - Technical Design and System Programming Leader:

• Software developer and design programmer.
• Proficient in various technologies, including Servlets, SOAP, Microservices, CI/CD, Apache Kafka, Spring Framework, and more.
• https://github.com/nvminh
• https://www.linkedin.com/in/nvminh-gmail-com/

Mr. Dinh Duong Ha - UI/UX Design, Application Programming:

• Specializes in software design, microservices, C#, C++, Qt, Go, Rust, embedded Linux programming, blockchain, SmartContract, REST, and PostgreSQL.
• https://github.com/dinhduongha

Mr. Truong Hoai Quoc - UI/UX Design, Application Programming:

• Project Management and Software Development expertise.
• Proficient in C#, SQL, PHP.
• Involved in electronic invoice and business management software solutions.
• linkedin.com/in/truong-hoai-quoc-041519148

Mr. Arnaud Spiwack - Haskell Developer:

• Has 6 years of Haskell programming experience.
• Github: https://github.com/aspiwack.

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

Milestone 1: (3 months)

• Research an Design Encrypted mechanism
• Making Encrypted, Auditable link to add to NFC
• System flow from NFC to blockchain
• Creating Input data system
• Storing product history system

Resources:

• 1 Project Leader: Cost $3,000 (3 months)
• 1 System Analyst and Designer: Cost $4,000 (3 months)
• 1 Plutus Developer: Cost $3,000 (3 months)
• Total: $10,000

Milestone 2: (3 months)

• Building Blockchain-based Product Authentication App Prototype.

Resources:

• 1 Project Leader: Cost $3,000 (3 months)
• 1 System Analyst and Designer: Cost $4,000 (3 months)
• 1 Plutus Developer: Cost $2,000 (3 months)
• 1 Back-end Developer: Cost $2,000 (3 months)
• 1 UX/UI Developer: Cost $2,000 (3 months)
• Total: $13,000

Milestone 3: (3 months)

• NFC seal design
• Making NFC process
• Add Encrypted, Auditable link to NFC
• Connecting NFC to the App

Resources

• 1 Project Leader: Cost $3,000 (3 months)
• 1 System Analyst and Designer: Cost $4,000 (3 months)
• 1 Plutus Developer: Cost $2,000 (3 months)
• 1 Back-end Developer: Cost $2,000 (3 months)
• 1 UX/UI Developer: Cost $2,000 (3 months)
• Total: $13,000

Final Milestone: (1 months)

• Project close-out report
• Project close-out video

Resources:

• 1 Project Leader: Cost $2,000

Total Budget:

• Total budget in USD: $48,000
• Total budget in ADA: 137,000 ADA (rate: 1 ADA = $0.35)

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

• Fees: The project could generate revenue by charging businesses a fee for using the authentication service. This fee could be based on factors such as the number of products authenticated or the value of the products.
• Increased Brand Value: By enhancing product security and authenticity, the project can help businesses protect their brand reputation and increase brand value. This can lead to increased sales, market share, and customer loyalty.
• Reduced Costs: By reducing the costs associated with counterfeiting, such as legal fees, product recalls, and lost sales, businesses can realize significant cost savings.
• Counterfeit Prevention: The blockchain-based authentication system can significantly reduce the risk of counterfeiting. Each product is assigned a unique, immutable token on the blockchain, making it difficult to replicate.
• Tamper Detection: The system can detect tampering with products. If a product's information on the blockchain doesn't match the physical product, it can be flagged as potentially tampered with.

Most of the salary of members implementing this proposal only fluctuates around $700 - $1,000. This is a very competitive cost in the current market for the work that our team can do with its capacity.