Identity Verification (KYC replacement for Sumsub)

[GENERAL] Name and surname of main applicant

William Shelton

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

Individual

[GENERAL] Requested funds in ada

100000

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

7

[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 dApp built that digitizes, verifies, and stores critical identity documents. Verified individuals will display a “badge” granting them KYC status with the same legitimacy as a government physical ID

[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.”

• Acceptance of this system as a replacement to sumsub KYC within Project Catalyst.
• Aceptance of this system by government and public entities

[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

The entire project, including smart contracts code, will be open-sourced under the MIT License

[METADATA] Horizons

Identity & Verification

[SOLUTION] Please describe your proposed solution

The world’s most vulnerable populations—such as undocumented individuals, refugees, and those affected by natural disasters—often lack secure documentation, preventing them from accessing critical services like healthcare, education, housing, and employment. Even within catalyst sumsub verification has been a pain for indiciduals in third-word countries.

We will develop a decentralized application (dApp) built on the Cardano blockchain to securely digitize, store, and verify critical documents such as identification cards, medical records, and diplomas. This will allow us to link this information to people acting as KYC to access services. Users will create accounts upload their documents, and submit them for verification. Partnering institutions such as governments, universities, and healthcare providers will validate these documents through smart contracts, and once verified, the document will display a digital verification badge.

Key Features:

1. Cross-sector Verification: Team will focus on three primary sectors: government-issued IDs, medical records, and educational diplomas.
2. Smart Contract Verification: Individuals will submit their data into a smart contracts which then results in government action to validate documents which once complete will allow the smart contract to issue a verifiable badge.
3. Secure Storage: All documents will be stored using encrypted, decentralized methods to safeguard personal data on IPFS
4. Accessible Design: The platform will be available on mobile apps and web clients, ensuring access for users with limited internet connectivity.

The Solution:

We will be deployed a dApp that will appear on app stores. Universal access is a major priority, as many of the individuals we are trying to help have extremely limited internet access.

1. Users will download the free app from their respective “App Stores”.
2. Users will generate an account to secure their account.
3. From there, users will be able to upload a fixed amount of data, limited to ID, Medical Records, or Legal Documentation.
4. If users wish to have their documents verified, they may submit their documents in the ‘Verification’ portal. Our Verification process uses “Smart Contract” technology to act as an in-between for the government, medical or educational institution. Once these entities has approved the document, dApp will display a verification badge for the individual showcasing its legitimacy and serving as KYC

The purpose of this app will be (with institutional support) to act as a way of recovering, protecting, and acting as a potential substitute for physical ID.

Our impact will be proven in many ways, but the primary goal is to establish a Cardano-based dApp as a central tool for major institutions to use for daily tasks such as KYC, with an acute emphasis on digitizing Identification.

The diagram depicts both ends of the app model, with registration and verification data included.

VERIFICATION:

The data being verified will include:

• Basic ID (Driver's Licenses, Passports, Social Security Cards)
• Medical Records
• Diplomas

More will be included at a later date

Steps of Verification:

• ID will be securely uploaded onto an encrypted network and stored.
• Next, ID or documents will be submitted for verification with corresponding institutions
• Once the information has been validated as accurate by the respective institution, they will allow the conditions of 'verification' to be met
• Smart Contracts will allow a 'verification badge' to be displayed alongside the users profile on the user end.
• The user end will have a digital documentation with government/institutional verification that will be just as good or better than physical ID.
• This has many uses cases such as a replacement to sumsub KYC for project catalyst.

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

It will demonstrate Cardano’s real-world utility in solving a critical global issue, attracting both institutional and individual users to the ecosystem. By bridging the gap between decentralized technology and mainstream institutional needs, this platform will bring attention to Cardano’s robust security and transparency while increasing transaction volumes and user engagement on the network.

Key impacts include:

• Establishing Cardano as a leading platform for decentralized identity verification.
• Increasing user engagement and adoption of Cardano-based dApps by partnering with government and educational institutions.
• Providing a use case that highlights Cardano’s capabilities in real-world applications outside of financial services.
• Saves the community money from catalyst or intersect paying sumsub.

Impact Measurements:

• Number of institutions (by country) onboarded for identity verification.
• Number of users actively using the platform to upload and verify documents.
• Transaction volume generated on the Cardano blockchain by verification processes.

[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?

William Shelton is a Fund 8 recipient who successfully completed his project on time and within budget, demonstrating high levels of trust and accountability. The project will benefit from his previous experience managing blockchain-based solutions, as well as the support of an experienced advisory board.

Advisory Board:

• Jeffery Sisco, MBA: Professor, Rutgers Business School, providing business and strategic guidance.
• Danilo Parmegiani: Executive Director, Legion of Good Will USA, assisting with nonprofit engagement.
• Seth Kaper-Dale: Founder, RCHP-Affordable Housing Corp, offering expertise in social impact and housing.
• Gary Minkoff: Former Mayor of Highland Park, NJ, advising on public policy.
• Edward Laporte: Director, NJ Office of Faith-Based Initiatives, offering guidance on legal frameworks.
• Gilbert Morris: Ambassador of the Bahamas, specializing in international affairs.
• Raphaele Chappe: Defi Economist, providing technical economic analysis for the project.

Validation and Feasibility:

• The project will begin with a Proof of Concept (PoC) where smart contracts will be used to verify government-issued documents from select institutions.
• Quarterly Reports will be shared with the Cardano community to ensure transparency and track progress.
• Independent audits will be performed on all smart contracts to guarantee the security and functionality of the platform.

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

Milestone 1: DApp Architecture Development with IPFS Integration

Timeframe: Month 1-2

Objective: Design and develop the core architecture of the DApp, including integration with IPFS for decentralized storage.

• Outputs:
• Completion of DApp architecture design.
• Initial development of the DApp backend, focusing on secure storage solutions using IPFS (InterPlanetary File System or Iagon).
• Prototype allowing basic document upload functionality, stored on IPFS.
• Begin early-stage testing of the IPFS storage system.
• Preliminary discussions with institutions for partnership on the next phase of the project (including project catalyst)

Milestone 2: Smart Contract Development & Testing

Timeframe: Month 3-4

Objective: Develop and test the smart contracts that will automate identity verification on the platform.

• Outputs:
• Smart contract development for identity verification and validation.
• Deployment of smart contracts on the Cardano testnet for internal testing.
• Initial testing of the smart contract functionality, ensuring accurate execution of document verification processes.
• Collaboration with institutional partners for feedback and preliminary testing.
• Security audit preparations to ensure smart contract robustness.

Milestone 3: Integration of Smart Contracts with IPFS

Timeframe: Month 5-6

Objective: Integrate the smart contracts with the DApp architecture, enabling full identity verification and KYC capabilities.

• Outputs:
• Integration of the smart contracts with the DApp's backend architecture, allowing automated identity verification and decentralized storage via IPFS.
• Final testing of the DApp’s functionality, including user onboarding and identity verification processes country by country.
• Onboarding of initial test users and pilot institutions for real-world testing.
• Completion of security audits to ensure the platform's readiness for broader deployment.
• Final refinement of the user interface (UI) and user experience (UX) for optimal performance.

Final Milestone: Full Product Launch with Test Users and Preliminary Institutions

Timeframe: End of Month 7

Objective: Complete the final product and launch it with test users and preliminary institutional partners.

• Outputs:
• Full-scale deployment of the DApp, including IPFS integration and smart contract-based verification.
• Onboarding of test users and select institutions for the pilot phase of the platform.
• Initial feedback from test users and institutions, with improvements based on real-world application.
• Finalized reporting and documentation for the project, including a performance review and security audit reports.
• Open-source release of the smart contracts and supporting documentation for community use and auditing.

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

William Shelton: Project Lead. Responsible for overseeing the project’s execution and managing team operations.

LinkedIn: William Shelton

Jeffery Sisco, MBA: Business Advisor. Providing guidance on strategic development.

LinkedIn: Jeffery Sisco

Danilo Parmegiani: Nonprofit Engagement. Assisting with nonprofit and institutional outreach.

LinkedIn: Danilo Parmegiani

Seth Kaper-Dale: Social Impact Advisor. Advising on social impact initiatives and inclusion.

Wikipedia: Seth Kaper-Dale

Gary Minkoff: Public Policy Advisor. Providing insights into government partnerships.

LinkedIn: Gary Minkoff

Edward Laporte: Legal Advisor. Assisting with compliance and legal frameworks.

LinkedIn: Edward Laporte

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

Budget & Costs Breakdown

Total Funding Request: 100,000 ADA

• DApp Architecture Development and IPFS Integration

  Cost: 30,000 ADA  

  Description: This covers the design and development of the core DApp architecture and integration with IPFS for decentralized storage.  

  Breakdown:  

• DApp architecture design: 12,000 ADA  
• Backend development with IPFS integration: 10,000 ADA  
• Initial prototype testing and storage system: 5,000 ADA  
• Preliminary consultations with institutions: 3,000 ADA

• Smart Contract Development & Testing

  Cost: 25,000 ADA  

  Description: This phase focuses on the development of smart contracts for document verification and validation. It includes internal testing and collaboration with institutions for early feedback.  

  Breakdown:  

• Smart contract development for verification: 15,000 ADA  
• Deployment on Cardano testnet for testing: 5,000 ADA  
• Institutional partner collaboration and feedback sessions: 3,000 ADA  
• Security audit preparations: 2,000 ADA

• Integration of Smart Contracts with IPFS

  Cost: 20,000 ADA  

  Description: Integration of the smart contracts with the DApp architecture, enabling full document verification and storage capabilities using IPFS.  

  Breakdown:  

• Integration of smart contracts with backend: 10,000 ADA  
• Final testing of functionality and user onboarding: 5,000 ADA  
• Security audits and performance refinement: 5,000 ADA

• Final Product Launch and Reporting

  Cost: 15,000 ADA  

  Description: This phase includes the launch of the DApp with initial test users and institutions, along with final documentation, reporting, and open-source release of the smart contracts.  

  Breakdown:  

• Full-scale deployment and onboarding of test users: 7,000 ADA  
• Reporting and performance review: 4,000 ADA  
• Final product documentation and open-source release: 4,000 ADA

• Project Management and Community Engagement

  Cost: 10,000 ADA  

  Description: This covers project management, coordination, and community outreach to ensure that stakeholders are informed and involved throughout the project lifecycle.  

  Breakdown:  

• Project management and coordination: 6,000 ADA  
• Community engagement and outreach: 4,000 ADA

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

The cost of this project represents value for money by delivering a high-impact solution that significantly enhances the legitimacy and utility of the Cardano ecosystem. We have carefully calculated development and management costs based on advice from our advisory professionals and realistic input from our internal development team. This ensures that all expenses are proportional to current industry standards and freelance rates, providing a cost-effective pathway to a high-quality final product.

Considering the project's potential to support institutional and governmental collaboration, the initial investment promises substantial long-term returns. It can serve as a community-driven alternative to services like Sumsub, with use cases ranging from KYC for legal compliance to anti-money laundering measures in Cardano DeFi projects. With its scalable design, this project will strengthen Cardano’s reputation and credibility, offering value beyond its immediate utility.