LuxeChain: Decentralized Luxury Watches & Accessories Authentication

[GENERAL] Name and surname of main applicant

Boaz Unger

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

Entity (Not Incorporated)

[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)

We will create a Cardano-powered marketplace using zero-knowledge proofs to authenticate luxury watches and accessories, ensuring privacy, combating counterfeits, and providing full traceability.

[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

While some aspects of LuxeChain will remain proprietary to protect brand relationships and sensitive business data, we will make key components open-source. Specifically, the smart contracts for product authentication and ownership transfer will be released under an MIT license, allowing the community to inspect, modify, and adapt them for other use cases.

The decision to keep certain parts proprietary is driven by the need to safeguard privacy and security-sensitive features. By balancing open-source contributions with proprietary elements, we aim to support Cardano's ecosystem growth while maintaining a competitive edge in the luxury goods market.

[METADATA] Horizons

Marketplace

[SOLUTION] Please describe your proposed solution

LuxeChain is a decentralized marketplace for luxury watches and accessories, leveraging Cardano's blockchain and zero-knowledge proofs to create a trusted ecosystem for buyers, sellers, and manufacturers.

Problem Perception:

The luxury market suffers from widespread counterfeiting and lack of trust in second-hand sales due to the absence of a secure, privacy-preserving system for verifying the authenticity of watches and accessories. This undermines both buyer confidence and market value.

Approach:

Our solution uses Cardano’s blockchain to create an immutable, transparent record of authenticity and ownership, combined with zero-knowledge proofs to preserve privacy. This approach ensures that sensitive details remain private while allowing for verifiable authentication and traceability.

Key Aspects:

1. Authentication and Traceability: Authorized sellers and manufacturers can register watches and accessories, creating a unique digital identifier for each item. This is linked to product details, manufacturing data, and ownership history without exposing sensitive information.
2. Privacy-Preserving Ownership Tracking: Zero-knowledge proofs enable ownership transfers without revealing buyer or seller identities, maintaining privacy while still establishing a trusted chain of ownership.
3. Marketplace Integration: The platform includes a user-friendly interface for buying, selling, and trading authenticated luxury watches and accessories, with each listing displaying verified authenticity and ownership history.
4. Counterfeit Prevention: Immutable records make it difficult for counterfeit items to enter the market, providing buyers with confidence in the authenticity of their purchases.
5. Value Preservation: As many luxury watches and accessories appreciate in value, our solution helps preserve and even enhance their market worth by ensuring a trusted provenance.

Unique Aspects:

LuxeChain is unique in its combination of blockchain and zero-knowledge proofs specifically tailored to the luxury market. No existing platform offers this level of privacy-preserving, decentralized verification for luxury watches and accessories. This solution also benefits the Cardano ecosystem by showcasing an innovative, real-world use case that blends financial transactions with secure, private authentication.

Engagement and Beneficiaries:

The project will engage luxury brands, authorized sellers, collectors, and enthusiasts. It will provide direct benefits to these stakeholders by reducing counterfeiting and increasing trust in the luxury secondary market.

Demonstrating Impact:

We will measure impact through the number of watches and accessories registered, the volume of transactions processed, and the reduction in counterfeit reports from participating brands.

By fostering trust and security in the luxury goods market, LuxeChain provides a valuable service to both industry participants and consumers, while also highlighting the strength and versatility of Cardano's technology.

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

LuxeChain will showcase Cardano's ability to solve real-world problems in the luxury market, with potential to expand to other high-value sectors. Our project will positively impact the Cardano community by:

1. Increased Adoption: By attracting luxury watch and accessory enthusiasts, along with manufacturers and authorized sellers, LuxeChain will bring new users into the Cardano ecosystem. This will highlight Cardano's versatility, increasing its visibility and adoption in the high-end goods market.
2. Enhanced Reputation: Implementing zero-knowledge proofs for privacy-preserving authentication in a commercial marketplace for watches and accessories will bolster Cardano's reputation as a cutting-edge blockchain platform that prioritizes privacy and security.
3. Economic Activity: Our marketplace will drive economic activity on the Cardano blockchain by generating transaction fees from the sale, purchase, and trade of authenticated luxury items. This increases Cardano’s utility and transactional throughput.
4. Cross-Industry Potential: Success with luxury watches and accessories could lead to expansion into other high-value goods, such as jewelry, art, and vintage collectibles. This would further demonstrate Cardano’s potential across multiple industries.

Measuring Impact:

We will track both quantitative and qualitative metrics to measure our success, including:

• The number of luxury watches and accessories registered on the platform
• The volume and value of transactions processed on the marketplace
• User adoption rates, tracking the number of buyers, sellers, and manufacturers joining the platform
• A reduction in counterfeit sales reports, measured in collaboration with luxury brands

Sharing Outputs:

We will engage the Cardano community and share our results through:

• Regular updates on Cardano forums, social media channels, and other community platforms
• Quarterly reports featuring key metrics like registration numbers, transaction volume, and user growth
• Case studies with participating luxury brands to highlight real-world benefits
• Contributions to the open-source development of Cardano, especially in relation to zero-knowledge proofs and marketplace integration

Our outputs and success stories will not only prove Cardano’s capability in the luxury sector but also offer opportunities for collaboration with other sectors, further increasing the ecosystem's value and reach.

[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?

Our team is highly experienced and well-positioned to deliver LuxeChain successfully, combining deep industry knowledge, design expertise, and blockchain development skills:

• Boaz Unger, leading the project, brings over 20 years of experience in the luxury industry. His roles have included VP Marketing and Product, Business Development Director, and Entrepreneur, with proven success across product lifecycles and business development in luxury goods markets. His extensive network and experience in the watch and accessory sectors ensure strong industry engagement.

• Zachi Diner, heading design and UX/UI, has over 20 years of experience in digital design, product strategy, and branding. Zachi has led the design for major projects such as Waze and telecom services (AT&T, Verizon, T-Mobile), as well as co-founding design studios in San Francisco and Israel. His recent role as head of the Visual Communication Department at a leading design institute further showcases his leadership in design education and user experience.

• Blockchain Developer (TBD), with extensive experience contributing to multiple Cardano projects, will lead the technical development of the LuxeChain platform, ensuring a strong, secure blockchain foundation. We will consult with Cardano blockchain developers from the Cardano India community (cardanoindia.com) and Gimbalabs (gimbalabs.com/gimbalgrid) to find the right Blockchain Developer and to access other developers as needed.

Ensuring Trust and Proper Fund Management:

To manage funds responsibly and maintain transparency, we will:

1. Provide transparent milestone reporting on the Catalyst platform, allowing the community to track our progress and validate deliverables at each stage.
2. Regular financial reports will be shared, ensuring clear accountability for how funds are being used.
3. Audits and reviews will be conducted at key milestones to ensure financial responsibility and project sustainability.

Validating the Feasibility of Our Approach:

1. Strategic Location: Based in Switzerland, the heart of the luxury watch industry, we are well-positioned to develop and test our solution in collaboration with a luxury watch or accessory brand, creating a strong proof of concept.
2. Zero-Knowledge Proof Testing: For the Zero-Knowledge proof implementation, we will coordinate closely with the zkFold team (zkfold.io) and/or IAMX (iamx.id) to ensure seamless integration into LuxeChain.
3. User Feedback and Iteration: We will gather feedback from potential users—luxury brands, sellers, and buyers—and use it to refine and improve the platform. This iterative process will ensure the product meets market needs and expectations.
4. Pilot Testing: We plan to test the platform with a small group of sellers and buyers before moving to advanced development. This will allow us to identify and address potential issues early, ensuring the platform is fully optimized and refined before proceeding to broader development stages.

By leveraging our team's industry expertise, strategic partnerships, and a rigorous validation process, we are confident in our ability to deliver LuxeChain with the highest levels of trust and accountability. Our transparent approach to reporting and strong industry ties will ensure the project's feasibility and success.

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

Description: Platform Architecture and Design

Outputs:

• Detailed technical specifications document outlining system architecture and components.
• UI/UX wireframes and interactive prototypes for the marketplace.

Acceptance Criteria:

• Approval of the technical specifications by the project team.
• User testing of UI/UX prototypes with >80% positive feedback from participants.

Evidence of Milestone Completion:

• Documented approval from the project team.
• User testing report with results showing satisfaction levels.

Description: Core Smart Contract Development

Outputs:

• Development of smart contracts for luxury watch and accessory registration and ownership transfer.
• Implementation of zero-knowledge proofs to ensure user privacy.

Acceptance Criteria:

• Successful deployment of smart contracts on the Cardano testnet.
• All unit and integration tests pass without failures.
• Internal security review completed with no critical vulnerabilities identified.

Evidence of Milestone Completion:

• Testnet deployment transaction records.
• Unit and integration test reports.
• Documentation of the internal security review process and findings.

Description: Frontend Development and Integration

Outputs:

• Functional MVP of the web application integrated with smart contracts.
• User authentication and wallet connection features fully implemented.

Acceptance Criteria:

• Successful end-to-end testing of all core features (registration, transfer, authentication).
• Compatibility tests confirming functionality across commonly used web browsers and wallet applications.

Evidence of Milestone Completion:

• End-to-end testing report confirming all features work as intended.
• Compatibility test results demonstrating successful integration with various platforms.

Description: Pilot Testing

Outputs:

• Onboarding of at least 25 users, including authorized sellers and a luxury watch or accessory brand.
• Execution of 50+ tests for product registration and ownership transfers.
• Comprehensive Project Close-out Report summarizing project outcomes, key metrics, and lessons learned.
• Video presentation highlighting the project journey, milestones achieved, and user testimonials.

Acceptance Criteria:

• Successful registration and transfer of watches and accessories during pilot testing.
• User satisfaction rate >85% from pilot participants.
• Completion and approval of the Project Close-out Report by the project team.
• Final video meets quality standards and effectively communicates the project’s success and impact.

Evidence of Milestone Completion:

• Reports on user onboarding and engagement.
• Summary of test registrations and transfers completed during the pilot.
• User satisfaction survey results.
• Finalized Project Close-out Report and video file.

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

Boaz Unger

• Role: Project Lead and Marketing Specialist
• Experience: Boaz brings over 20 years of experience in the luxury industry, with roles including VP Marketing and Product, Business Development Director, and a solid entrepreneurial background. He will oversee the project, ensuring alignment with industry standards and driving strategic initiatives.
• LinkedIn: https://www.linkedin.com/in/boaz-unger-75208a2/

Zachi Diner

• Role: Design and UX/UI Lead
• Experience: Zachi has over 20 years of experience in digital design and new media, focusing on product design, strategy, research, branding, and leading creative teams. He has contributed to successful product launches like Waze and has co-founded design studios in San Francisco and Israel. Zachi will be responsible for creating the UI/UX of the platform and ensuring a seamless user experience.
• LinkedIn: https://www.linkedin.com/in/zachi-diner-214219/

Blockchain Developer

• Role: Smart Contract Developer
• Experience: The developer will have experience contributing to multiple Cardano projects and will focus on the development of the smart contracts necessary for luxury watch and accessory registration and ownership transfer. We will consult with Cardano blockchain developers from the Cardano India community (cardanoindia.com) to find the right Blockchain Developer for the project. Additionally, we will reach out to Gimbalabs (gimbalabs.com/gimbalgrid) to access other developers as needed.
• LinkedIn: TBD

Recruitment Needs

As the project progresses, we may recruit additional team members with the following skills:

• Frontend and Backend Developer: A versatile developer to manage both the frontend and backend of the web application, ensuring seamless integration and functionality.
• Quality Assurance: Expertise in testing and validating blockchain applications.
• Zero Knowledge Specialist: We will coordinate with the zkFold team (zkfold.io) and IAMX (iamx.id) to integrate Zero Knowledge components into the project.

Engagement and Communication

We have engaged our current team members and confirmed their availability and commitment to the project. We are in contact through relevant technical group channels to ensure smooth communication and collaboration.

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

Total Requested Amount: 140,000 ADA

Milestone 1: Platform Architecture and Design

Budget Allocation: 45,000 ADA

This milestone represents the foundation of the project and requires a significant upfront investment:

• Design and UX/UI Development: 20,000 ADA for creating wireframes, prototypes, and conducting user testing to ensure an engaging user interface.
• Project Management and Documentation: 10,000 ADA for planning, technical specifications, and documentation of all design and testing efforts.
• Software Licenses & Tools: 5,000 ADA for essential design and development tools like wireframing, prototyping, and project management software.
• Contingency Fund: 5,000 ADA to handle any unexpected costs during the early development stages.
• Initial Testing and Feedback Collection: 5,000 ADA for conducting initial user testing and analysis of design prototypes.

Milestone 2: Core Smart Contract Development

Budget Allocation: 35,000 ADA

This milestone focuses on building the core blockchain functionality:

• Development Costs: 30,000 ADA for smart contract development related to luxury watch registration, ownership transfer, and zero-knowledge proof implementation.
• Testing and Quality Assurance: 5,000 ADA for conducting unit tests and integrating smart contracts on the Cardano testnet.

Milestone 3: Frontend Development and Integration

Budget Allocation: 25,000 ADA

This stage covers the development and integration of the front-end application with blockchain contracts:

• Frontend and Backend Development: 20,000 ADA for implementing the web application, including user authentication and wallet integration.
• Testing and Quality Assurance: 5,000 ADA for end-to-end testing of all features, ensuring seamless integration with blockchain contracts.

Final Milestone: Pilot Testing and Project Close-out

Budget Allocation: 20,000 ADA

The last phase will focus on piloting the platform with real users and finalizing the project documentation:

• Logistics and Business Development: 10,000 ADA for business development efforts, travel, and onboarding pilot users and luxury brands.
• Marketing and Community Engagement: 5,000 ADA for promotional efforts, organizing outreach, and gathering feedback from pilot participants.
• Project Close-out Report & Video: 5,000 ADA for creating a comprehensive final report and video, summarizing the project outcomes.

Key Notes:

• The budget is front-loaded to prioritize development (45,000 ADA in the first milestone and 35,000 ADA in the second), ensuring that the foundational aspects of the platform are fully developed and tested.
• By focusing more on the initial stages, the project will be well-positioned for testing, refinement, and user onboarding later on.
• The final milestone allocates sufficient resources (20,000 ADA) to business development and marketing, ensuring the platform’s success and user engagement during the pilot phase.

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

The LuxeChain project presents significant value for money to the Cardano ecosystem in several key ways:

1. Innovation Showcase: By implementing zero-knowledge proofs in a practical application, LuxeChain will highlight Cardano's advanced technological capabilities. This innovation can attract more developers and projects to the ecosystem, fostering a culture of creativity and advancement.
2. Market Expansion: Targeting the luxury watch market—valued at dozens of billions of dollars—opens a new, high-value sector for Cardano. This strategic focus can lead to increased adoption and transaction volume, further solidifying Cardano’s position as a leader in blockchain technology.
3. Reusable Components: The zero-knowledge proof implementations and smart contract templates developed during this project will not only serve LuxeChain but can also be repurposed for other Cardano projects. This creates a ripple effect, accelerating overall ecosystem growth and enhancing its utility.
4. Brand Partnerships: Collaborating with reputable luxury watch brands will draw mainstream attention to Cardano, potentially leading to broader adoption and an increase in ADA value. Such partnerships not only validate Cardano's credibility but also enhance its visibility in new markets.
5. Cost Efficiency: Our budget is meticulously optimized by leveraging open-source tools and community resources, ensuring that the majority of funds are directed towards unique development and security needs. This strategic allocation enhances the overall impact of the investment.

The costs outlined in our budget are aligned with industry standards for blockchain development and reflect typical rates for specialized expertise. Given the expected return on investment through ecosystem growth and increased Cardano adoption, the value generated by this project far exceeds the initial funding.