Decentralized Data Storage & Secure Messenger

[GENERAL] Name and surname of main applicant

Oleg Sukhorukov

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

Individual

[GENERAL] Requested funds in ada

150000

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

12

[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)

A secure, decentralized communication platform with open-source code will be developed, starting with decentralized data storage applicable to other uses, followed by building the messenger itself.

[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.”

The project relies on certain technical dependencies. These include the successful implementation of Layer 2 solutions such as Hydra to optimize performance and reduce load on the Cardano main network. Additionally, the use of cryptographic libraries, such as ZK-SNARKs, is essential for ensuring data privacy and integrity. These technologies will need to be integrated into the platform to ensure its success.

[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

Apache License 2.0

[METADATA] Horizons

Privacy

[SOLUTION] Please describe your proposed solution

How do you perceive the problem you are solving?

Problem Description:

Modern communication tools are often controlled by centralized organizations—either corporations or government entities. This leads to several serious consequences:

• Lack of Privacy: User data can be intercepted, analyzed, or used without user consent.
• Censorship and Control: Central nodes can block or restrict access to information, suppressing freedom of speech and communication.
• Distrust in the System: Closed-source code prevents users from verifying the security and reliability of the applications they use.

Relevance of the Problem:

Recent events have highlighted the vulnerability of even large and popular platforms to external pressures. Major projects with a substantial user base are not allowed to implement full decentralization and privacy due to risks associated with loss of control.

Solving the Problem from a Different Angle:

The only way to overcome these limitations is to create decentralized applications with open-source code from the outset. This approach ensures:

• Independence from Central Servers: Eliminates a single point of failure and control.
• Transparency: Open-source code allows anyone to verify the system's security and reliability.
• Resilience to Pressure: A decentralized architecture makes external interference and censorship more difficult.

What are your reasons for the chosen approach?

Step-by-Step Approach:

Stage 1: Decentralized Data Storage

• Reasons: Creating a reliable infrastructure for data storage is fundamental for any decentralized application. This ensures security and control over data at the most basic level.
• Advantages: Such storage can be used not only for the messenger but also for other applications, contributing to the development of the ecosystem.

Stage 2: Messenger Development

• Reasons: Based on the created infrastructure, users can be provided with a secure means of communication that does not depend on central servers and ensures complete privacy.
• Advantages: The messenger will demonstrate the platform's capabilities and attract users who care about the security of their communications.

Why This Approach Was Chosen:

• Scalability: The platform will adopt a modular architecture, where each component (such as storage, communication, and encryption) can scale independently. A decentralized peer-to-peer (P2P) network will be used to distribute the load efficiently, enabling the platform to handle an increasing number of users without performance degradation.
• Security: The platform will feature end-to-end encryption (E2EE) to secure communication between users. Additionally, multi-factor authentication (MFA) and encrypted backups will be implemented to enhance security. The system's robustness will be verified through regular security audits and vulnerability assessments by third-party experts. To further protect user data, zero-knowledge proofs (ZKP) may be utilized to ensure data security without revealing its contents.
• Trust Through Openness: Open-source code allows anyone to verify the system's security and ensure there are no hidden vulnerabilities or backdoors.
• Resilience to Pressure: Decentralization eliminates the possibility of control or shutdown of the system by a single organization or government.

Who will your project engage?

Target Audience:

• General Users: Anyone who values their privacy and wants the ability to communicate freely without fear of surveillance or censorship.
• Journalists and Activists: Individuals for whom secure communication is critically important in their work and lives.
• Business Communities: Companies that need to protect confidential information and internal communications.
• Developers: In addition to the general users, developers will be engaged by providing them with an API for direct interaction with the platform's decentralized data storage and messaging components. This will enable developers to integrate the platform's functionality into their own projects, allowing for custom solutions and deeper integration without the need to rely solely on the GUI or TUI.

How will you demonstrate or prove your impact?

Action Plan and Expected Outcomes at the Concept Stage:

• Research and Design:
• Conduct an analysis of existing solutions in decentralized data storage and communication.
• Develop a conceptual system architecture, including the definition of key components and their interactions.
• Create technical documentation describing the proposed technologies, protocols, and security methods.
• Prototyping:
• Develop a prototype of the basic functions of decentralized data storage.
• Test the scalability of the system through simulated high user traffic to identify performance limitations.
• Develop and test the API for direct interaction with the platform, ensuring that developers can integrate it into their own projects.
• Demonstrate the capability for secure storage and access to data within a distributed network.
• Community Engagement:
• Present the concept and prototype to the Cardano community to gather feedback.
• Collect suggestions and recommendations for further project development.
• Risk Assessment and Mitigation Plan:
• Identify potential technical and organizational risks.
• Develop strategies to minimize these risks in subsequent stages of the project.

How This Demonstrates Impact:

• Validating the Viability of the Idea: Show that the concept can be realized using existing technologies and resources.
• Establishing a Foundation for Future Development: Lay the groundwork for the future development of a fully functional product.
• Active Community Engagement: Receive valuable feedback and attract potential participants and supporters of the project.

Why This Is Important for Cardano?

• Expanding the Ecosystem: Introduce a new use case for the Cardano blockchain in the field of decentralized communications.
• Attracting Developers and Users: Generate interest in the platform among those who value security and privacy.
• Promoting Decentralization Principles: Strengthen Cardano's position as a blockchain supporting innovation in decentralized applications.

What is unique about this solution, who will benefit, and why is it important for Cardano?

Uniqueness of the Solution:

• Creating the first communication and decentralized data storage tool on the Cardano blockchain. This niche is not yet occupied within the ecosystem, making the project unique and innovative.
• Combining two key functions—a secure messenger and decentralized storage—provides users with a comprehensive solution for protecting their data and communications.
• Offering an API for developers, allowing for custom integrations and further innovation on top of the platform.

Who Will Benefit?

• Users: Will be able to communicate securely and store data without the risk of censorship or control by centralized organizations.
• Developers: Will gain new infrastructure for creating decentralized applications on Cardano, stimulating innovation and ecosystem growth.
• Cardano Community: An increase in users and developers will strengthen the network and enhance its value.

Importance for Cardano

• Attracting Users and Investors: New products draw attention to the platform, increasing its popularity and market capitalization.
• Expanding Network Functionality: Adding solutions for decentralized storage and communications makes Cardano more competitive compared to other blockchains.
• Strengthening the Ecosystem: The project contributes to community development by attracting new participants and encouraging collaboration.

Preliminary Implementation Plan

Decentralized Data Storage:

• Use of Layer 2 Solutions:

Layer 2 solutions like Hydra will serve as the foundation for implementing the decentralized storage system. These solutions will enable key processes—such as access control, authentication, data integrity verification, and storage—to be handled on an additional layer, reducing the load on the main Cardano network and improving system performance.

• Client-Side Encryption:

Data will be encrypted on the user’s device before being sent to the distributed network. AES-256 is planned to be used for symmetric encryption, providing high security when processing large volumes of data. Encryption keys will be generated on the client side and not transmitted over the network, minimizing the risk of data interception.

• Data Distribution Across Nodes (DHT):

Data will be broken into fragments and distributed across multiple network nodes. This approach eliminates single points of failure and increases storage reliability. Each node will store only part of the data, with access to it managed through a key management system.

• Data Integrity Verification:

To ensure that data is truly stored on network nodes, it is planned to consider mechanisms similar to Proof-of-Replication (PoRep) and Proof-of-Spacetime (PoSt). These mechanisms provide reliable storage and verification of data without the need to reveal its contents.

• Zero-Knowledge Proofs (ZK-SNARKs):

ZK-SNARKs or similar technologies will be used to verify the integrity and security of data without revealing its contents. This will allow network nodes to prove that the data is intact without accessing the data itself, greatly enhancing privacy.

Messenger:

• End-to-End Encryption (E2EE):

All messages will be encrypted using public and private keys. This ensures that even if data is intercepted, it cannot be deciphered by unauthorized parties.

• Double Ratchet Algorithm:

To dynamically update encryption keys during a session, the Double Ratchet Algorithm will be employed. This algorithm ensures that each session is protected from the compromise of previous or future keys.

• User Identification:

For protecting user privacy, protocols such as Zero-Knowledge Proofs (ZKP) or similar methods are planned to be considered. This will allow user identity verification without the need to disclose personal information.

• Perfect Forward Secrecy (PFS):

This mechanism will protect messages from being compromised in the event of a key leak, as each session will be encrypted with unique keys.

Conclusion:

This concept offers a secure decentralized storage system and messenger with a high level of privacy, using proven cryptographic methods such as AES-256, E2EE, and the Double Ratchet Algorithm. Layer 2 solutions like Hydra will serve as the foundation for the entire system, reducing the load on the main network and improving performance. ZK-SNARKs will protect data and allow for integrity checks without revealing its contents. Final decisions will be made based on further research, testing, and community feedback.

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

How will the success of your project bring value to the Cardano Community?

• Expanding Ecosystem Capabilities: Developing the concept of decentralized data storage and a secure messenger on Cardano will lay the foundation for future applications and services. This will attract interest from users and developers to Cardano as a platform for innovative solutions in decentralization and security. By making the project open-source and providing an API for integration, the project encourages external contributions and custom solutions.
• Stimulating Innovation: Presenting a new idea will inspire other developers to explore the possibilities of the Cardano blockchain and build their own applications using the project’s infrastructure. The project will serve as an example of how Cardano's technologies can be used to address pressing issues in communication and data security.

How will you measure this impact?

• Qualitative Metrics - сommunity Feedback:
• The number and quality of reviews and suggestions received after presenting the concept.
• The level of discussions on forums and social networks dedicated to the project.
• Quantitative Metrics - developer Engagement:
• The number of developers interested in participating in the further development of the project.
• The number of forks or contributions to repositories (if prototype code is published).
• User Interest: The number of subscribers or participants in the project's official channels.

How and with whom will you share your outputs and opportunities that result from your project?

• Publication of Documentation:
• Posting conceptual documents, architectural diagrams, and research in open access.
• Providing detailed descriptions that allow others to understand and utilize the project's ideas.
• Open Discussion and Collaboration:
• Creating platforms for discussion (forums, chats) where the community can ask questions and offer ideas.
• Encouraging community participation in refining the concept and planning further steps.
• Actively engaging with the Cardano developer community through forums and social media to demonstrate project outcomes and gather feedback.

[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?

Your Abilities and Experience

Experience in Software Development:

• Over 10 years of experience in programming with C family languages (C, C++/Qt), providing a deep understanding of system programming and the development of efficient solutions.
• A Master's degree in Mathematics and Information Technology, offering strong analytical skills and the ability to solve complex problems.
• While this project is my first experience creating a product in the field of decentralized data storage on blockchain, I have experience working with distributed data storage systems outside of blockchain. I plan to adapt some of these approaches for blockchain environments.

Project Implementation Plan at the Concept Stage

Individual Work or Small Team:

At the concept stage, the project will be carried out individually or with a small team of 1-2 people as needed. This approach allows for efficient use of the budget and focuses on key aspects of the project.

Focus on Research and Prototyping:

The plan is to research existing technologies to determine the most suitable ones for implementing the concept. During the prototyping phase, a basic decentralized data storage functionality will be developed to validate the viability of the idea. Community feedback will play a key role in refining and improving the project.

Validation of the Approach's Feasibility

• Community Feedback:
• Engage with the Cardano community to gather feedback and suggestions. Active participation in discussions on forums and community platforms will help collect expert opinions and improve the project approach.
• Risk Analysis and Planning:
• An analysis of potential risks will be conducted, along with strategies to minimize them. Key dependencies on external technologies, such as Layer 2 solutions and cryptographic libraries, will be considered, and the risk mitigation plan will be reviewed as the project progresses.

Fund Management and Accountability

• Efficient Use of Budget:
• A detailed budget will be developed for the concept stage, focused on research, prototyping, and minimal operational costs. The allocation of funds will prioritize key tasks to maximize the project's value at this stage.
• Transparency and Reporting:
• Transparent financial records will be maintained and accessible for review by interested parties. Regular updates on progress and fund usage will be shared with the community through relevant platforms.

Building Trust and Reliability

• Open Development:
• The source code for the prototype will be published in a public repository under an open-source license. The development process will be documented and described to ensure transparency.
• Communication with the Community:
• Active engagement with the community through forums, chats, and social networks. There will be a willingness to collaborate and accept contributions from participants interested in the project.

Final Description:

At the concept stage, the project will be implemented individually, with the possible involvement of additional specialists as needed. This approach aligns with the budget and focuses on research, developing a prototype, and validating the idea. My extensive experience in software development, along with my technical background, equips me with the necessary skills to carry out the work. Openness, transparency, and active community engagement will contribute to building trust and support for the project.

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

Research and Conceptual Design (2 months)

A: Milestone Outputs

• A detailed report on the research of existing decentralized data storage technologies and their applicability within the Cardano ecosystem.
• Conceptual design of the architecture for the decentralized data storage system.
• Technical specifications for prototyping the main components of the system.

B: Acceptance Criteria

• The report must cover an analysis of at least five existing technologies or protocols.
• The conceptual design includes architectural diagrams and descriptions of key components.
• The technical specifications are detailed enough to begin prototyping.

C: Evidence of Milestone Completion

• Publication of the report and design in open access (e.g., on GitHub or a personal website).
• Discussion of results with the Cardano community through forums or social networks.
• Collection and documentation of feedback from community members.

Prototyping Key Components (4 months)

A: Milestone Outputs

• Development of a prototype of the main components of the decentralized data storage system.
• Source code of the prototype published in a public repository under an open-source license.
• Documentation for installation and testing of the prototype.

B: Acceptance Criteria

• The prototype demonstrates basic functionality for storing and retrieving data in a distributed network.
• The code has undergone basic testing to ensure operability.
• The documentation is sufficient for others to install and test the prototype.

C: Evidence of Milestone Completion

• Public repository with the source code and documentation.
• Confirmation of the prototype's functionality through internal testing and feedback from early users (if possible).

Gathering Feedback and Refining the Concept (2 months)

A: Milestone Outputs

• Collection of feedback from the community and experts on the developed prototype and concept.
• Analysis of the received information and updates to the concept and technical documentation as needed.
• Definition of technical requirements for the next stage of development.

B: Acceptance Criteria

• Received at least five reviews or suggestions from community members.
• Updated documentation reflects the considered recommendations and changes.
• A prepared list of technical requirements for further development.

C: Evidence of Milestone Completion

• Documented report on the feedback received and adjustments made.
• Updated concept and documentation available in open access.
• Publication of the plan for further actions on community platforms.

Prototyping the Messenger Based on the Storage System (3 months)

A: Milestone Outputs

• Development of a basic prototype of the messenger utilizing the decentralized data storage.
• Source code of the messenger published in an open repository under an open-source license.
• Documentation for installation and usage of the messenger.

B: Acceptance Criteria

• The messenger allows sending and receiving messages through the decentralized network.
• Basic security features are implemented, including message encryption.

C: Evidence of Milestone Completion

• Public repository with the messenger's source code.
• Feedback from at least two users who have tested the messenger.
• Fixes and improvements made based on the feedback received.

Project Completion and Final Report (1 month)

A: Milestone Outputs

• Preparation of a final report on the work completed, including results for both the decentralized storage and the messenger.
• A short video presentation of the project, demonstrating the prototypes of the storage system and the messenger.
• A plan for further development of the project based on achieved results and feedback.

B: Acceptance Criteria

• The report covers all project milestones and includes performance metrics.
• The video is of professional quality and clearly demonstrates the capabilities of the prototypes.
• The future development plan is realistic and takes into account the feedback received.

C: Evidence of Milestone Completion

• Publication of the report and video on official platforms (project website, Cardano forums).
• Submission of reporting materials to the grant provider in accordance with their requirements.
• Positive feedback from the community and stakeholders.

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

Project Team

• Myself, Oleg Sukhorukov – Project Lead and Developer
• LinkedIn Profile: https://www.linkedin.com/in/oleg-sukhorukov
• Role in the Project:
• In this project, I will be responsible for most of the work, including conducting research, developing the concept, and prototyping the key components of the decentralized data storage system and messenger. With over 10 years of experience in software development and a Master's degree in Mathematics and Information Technology, I have the necessary skills to carry out these tasks effectively.

Potential Team Expansion

• Additional Specialists (as needed):
• Depending on the specific requirements that arise during the course of the project, I plan to bring in short-term specialists. This may include:
• Systems Architect: To consult on the architecture and ensure the solution's scalability and security, particularly in relation to the integration of Layer 2 solutions such as Hydra.
• Security Experts: To conduct audits and ensure data protection, especially for the integration of cryptographic libraries like ZK-SNARKs.
• Blockchain Developers: If necessary, to assist with the integration of decentralized storage mechanisms and consensus algorithms specific to Cardano’s ecosystem.

Engagement Strategy

• Utilizing Professional Networks and Communities:
• I will reach out to professional communities and platforms such as LinkedIn, Cardano forums, and relevant Telegram/Discord channels to find potential collaborators or consultants with expertise in specific areas, such as cryptography or Layer 2 development.
• Focus on Current Capabilities:
• At this stage, the main focus is on leveraging my own skills and resources to advance the project. However, I remain flexible and open to bringing in additional expertise if new technical challenges arise.

Thus, I plan to carry out the main project tasks independently, which aligns with the budget and goals at the concept stage. However, recognizing the importance of integrating complex technologies such as Layer 2 solutions and cryptographic protocols, I am prepared to engage specialists if necessary to ensure the project's success.

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

Financial planning for the project largely depends on the current value of ADA. At the time of writing, the price of ADA is 0.40 euros, making the grant of 150,000 ADA approximately equivalent to 60,000 euros. Considering an hourly rate of 25 euros, full-time commitment, and the complexity of the project, a significant portion of the grant will be allocated to cover my work, with the remaining funds going towards operational expenses.

Currently, the focus will be on performing key tasks myself to maximize the efficient use of the budget. If the value of ADA increases, this will create additional opportunities to cover expenses for hiring external specialists, consulting, or audit services.

Thus, my strategy is to manage the budget flexibly, adapting to market conditions to ensure the successful implementation of the project and the achievement of set goals.

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

The cost of the project represents good value for money given the level of expenses and the expected outcomes for the Cardano ecosystem. The majority of the budget is allocated towards developer time, which aligns with average market rates for similar projects in Lithuania. My hourly rate of 25 euros reflects the mid-level developer rate, consistent with industry standards where programmers in this field typically earn between 25 to 40 euros per hour.

Additional specialists, such as a systems architect or security experts, will be engaged only as necessary, allowing for minimized expenses and efficient use of resources.

The value of this project lies in the development of concepts and prototypes that demonstrate potential decentralized solutions based on Cardano. This can attract new users, developers, and investors to the ecosystem, supporting its growth and strengthening its community.

Thus, the project is designed to create value for the Cardano ecosystem by offering innovative solutions and fostering community growth, with costs that are proportional to the necessary tasks and demonstrate a responsible approach to the use of grant funds.