Decentralized Water & Electricity Payment System on Cardano

[GENERAL] Name and surname of main applicant

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

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

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

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

Decentralized platform using Cardano smart contracts to automate water and electricity payments, ensuring transparency, real-time tracking, and secure record-keeping for both users and providers.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

[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?

[GENERAL] Please provide here more information on the open source status of your project outputs

The project will be fully open source and available throughout the entire development lifecycle. We will use the MIT License to ensure the widest possible access and contribution from the community. All code, including the smart contracts, payment gateway, and platform interface, will be hosted in a public repository. This allows developers and stakeholders to review, contribute to, and audit the project, ensuring transparency and community involvement.

[METADATA] Horizons

[SOLUTION] Please describe your proposed solution

Proposed Solution

The problem we are solving is the inefficiency, lack of transparency, and delays in water and electricity bill payments, which often lead to errors and disputes between customers and service providers. By creating a decentralized payment platform on Cardano, we will automate the payment and record-keeping process for utility bills using smart contracts, ensuring a more efficient, transparent, and secure system.

Why This Approach?

Current systems are manual and prone to delays, errors, and fraud, making them unreliable. Blockchain, particularly Cardano’s blockchain, offers a decentralized and immutable solution that ensures transparency and security, which is crucial for something as essential as utility payments. By using smart contracts, payments will be automated and securely recorded on the blockchain, minimizing human intervention and the possibility of error.

Who Will Benefit?

• Consumers: They will experience faster, automated bill payments with real-time confirmations and immutable proof of payment recorded on the blockchain.
• Utility Providers: The system reduces administrative work, minimizes errors, and prevents payment disputes by offering a transparent, verifiable record of all transactions.
• Cardano Ecosystem: This project showcases the real-world utility of Cardano’s blockchain for everyday services, expanding its adoption and integration into critical services.

How Will We Engage Users?

We will engage both utility providers and their customers through partnerships and educational campaigns. We will offer simple onboarding procedures for utility companies, integrating the platform into their billing systems. For users, the platform will offer a user-friendly interface where they can view bills, make payments, and track their payment history.

Impact Measurement

We will measure the project’s impact through several key metrics

1. User Adoption: The number of consumers and utility providers using the platform.
2. Transaction Volume: The total volume of water and electricity payments processed via the platform.
3. Efficiency Gains: Reduction in payment delays, errors, and disputes compared to the traditional systems.
4. Cardano Ecosystem Growth: Increased adoption of Cardano by consumers and service providers for daily-use services, driving awareness and utility of the blockchain.

Uniqueness of Our Solution

Unlike traditional utility payment systems, our platform leverages Cardano's blockchain to ensure immutable, transparent, and secure records of all payments. By automating payments via smart contracts, we reduce the risk of errors and disputes. Additionally, this project not only solves the issue of utility payment inefficiencies but also demonstrates the real-world applications of blockchain, which is critical for the future adoption and growth of Cardano.

This solution brings practical, everyday value to Cardano’s ecosystem and directly benefits consumers and providers, making it a key driver for widespread blockchain adoption.

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

Positive Impact on the Cardano Community

1. Value to the Cardano Community

This project will demonstrate how Cardano's blockchain can be integrated into real-world applications by enabling decentralized water and electricity bill payments. By offering a transparent, efficient, and secure payment system for utilities, we will drive Cardano’s adoption as a solution for everyday services. This increases Cardano’s credibility as a blockchain capable of handling essential public services, which will attract new users and organizations to the ecosystem.

2. How We Will Measure Impact

We will measure both quantitative and qualitative impacts of the project

• Quantitative Metrics:
• Number of Utility Providers Integrated: The number of utility providers (water, electricity) using the platform.
• User Adoption Rate: The number of users paying their bills through the Cardano-based platform.
• Transaction Volume: The total number and value of payments processed on the platform.
• Efficiency Improvements: Measured by the reduction in payment processing time and the number of payment disputes resolved.

• Qualitative Metrics

• User Feedback: Surveys and feedback from customers and utility providers on the platform’s usability, reliability, and transparency.
• Provider Satisfaction: Insights from utility companies on how the system improves payment management and record-keeping.

3. Sharing Outputs and Opportunities

• Open Source Repository: We will share the complete source code under an open-source license (MIT), allowing the Cardano community to review, contribute, and expand upon the project.
• Partnerships with Utility Providers: As we onboard more utility companies, we will engage the wider Cardano community to assist with integration and development, creating further collaboration opportunities.
• Community Engagement: We will continuously update the Cardano community through forums, social media, and newsletters, sharing key milestones and progress.
• Educational Resources: To help other developers and organizations replicate or expand on the project, we will publish detailed documentation, tutorials, and case studies.

This project will provide an example of how Cardano can improve public services and solve real-world problems, boosting trust and adoption within and beyond the blockchain space.

[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?

1. Team Expertise

Our team consists of experienced blockchain developers, smart contract engineers, and professionals with deep expertise in utility systems and payment processing. We have successfully developed and deployed blockchain-based projects in the past, and we have extensive experience in building decentralized applications (dApps) on Cardano, including smart contract development using Plutus and Haskell.

Core Capabilities Include

• Blockchain Development Expertise: Our team has a solid understanding of Cardano’s ecosystem, including Plutus smart contracts and integrating blockchain technology with traditional systems.
• Utility Systems Knowledge: We have consulted with utility providers in the past and understand the intricacies of water and electricity payment processing.
• Project Management Experience: We have a strong track record of delivering projects on time and within budget, with clear milestones and transparent reporting.

2. Feasibility Validation

We will validate the feasibility of our approach in the following steps:

• Proof of Concept (PoC): We will first develop a PoC to demonstrate the integration of Cardano blockchain with utility systems for payment processing and record-keeping. This will ensure that the core functionality works before full-scale deployment.
• Partnerships with Utility Providers: We are already in discussions with local utility providers to integrate the platform into their billing systems. Early-stage collaboration will help streamline the integration process.
• User Testing: A pilot program will allow us to test the platform with real users, ensuring smooth functionality, ease of use, and scalability.
• Security Audits: Before launch, we will conduct a third-party security audit of our smart contracts and the platform to ensure it meets industry standards for security and reliability.

3. Trust and Accountability in Fund Management

To ensure proper management of funds and deliver results with high levels of trust and accountability:

• Milestone-Based Funding: We will implement a milestone-based funding model, where funds will be requested in stages after key milestones (e.g., PoC completion, security audit, pilot launch) are achieved and verified.
• Transparent Reporting: We will provide regular updates to the Cardano community and the Project Catalyst team, detailing both project progress and how funds are being allocated and spent.
• Financial Management Team: Our financial team will ensure that all project funds are properly allocated and documented, with clear accounting practices in place.
• Public Code Repository: As the project will be open-source, we will maintain full transparency on development progress through a publicly accessible code repository.

4. Previous Successes

Our team has successfully completed blockchain projects and has experience collaborating with public and private organizations to bring decentralized solutions to real-world problems. This strong track record demonstrates our capability to deliver high-quality, secure, and scalable solutions.

Our expertise in blockchain, strong project management, early collaboration with utility providers, and commitment to transparency and security make us well-suited to deliver this project successfully.

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

Proof of Concept (PoC) Development

• Description: Develop a working Proof of Concept (PoC) that includes the core functionality of water and electricity bill payments using Cardano smart contracts.
• Acceptance Criteria:
• Smart contract for payments and record-keeping is fully functional on the Cardano testnet.
• Basic user interface for users to input bill details and initiate payments.
• Successful transaction flow from user to utility provider’s test system.
• Estimated Completion: 2 months

 Security Audit and Smart Contract Optimization

• Description: Conduct a comprehensive security audit of the smart contracts and platform, followed by necessary optimizations to improve performance and security.
• Acceptance Criteria:
• Third-party security audit completed, with audit results shared with the community.
• All identified security issues resolved and optimizations implemented.
• Smart contracts tested on the Cardano mainnet for reliability and security.
• Estimated Completion: 1 month post-PoC

Pilot Program with Utility Providers

• Description: Launch a pilot program in collaboration with local utility providers to test the platform in a live environment with real users and utility bills.
• Acceptance Criteria:
• Integration with at least one utility provider’s live billing system.
• Onboarding of initial users for live bill payments.
• Collection of user and provider feedback for system improvements.
• Estimated Completion: 3 months

Full Platform Deployment and Marketing Campaign

• Description: Deploy the fully functional platform to the public, with support for multiple utility providers and a robust marketing campaign to drive adoption.
• Acceptance Criteria:
• Platform live and fully operational with multiple utility providers.
• Marketing campaign launched to promote user adoption and utility integration.
• User support and documentation in place to ensure smooth onboarding.
• Estimated Completion: 2 months

Project Close-out Report and Video

• Description: Provide a final project report and video documenting the project’s impact, adoption rates, and lessons learned.
• Acceptance Criteria:
• Final report shared with the Cardano community, detailing project outcomes, financial transparency, and user feedback.
• Project close-out video produced, summarizing the key achievements and future roadmap.
• Estimated Completion: 1 month post-launch

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

1. Leykun Asefa (Project Lead & Blockchain Developer)

• Role: Lead the overall project development, oversee smart contract creation, and manage Cardano blockchain integration.
• Scope: Manage development timelines, ensure smart contract implementation, and handle project execution according to Cardano’s ecosystem standards.

1. Smart Contract Developer

• Role: Develop and optimize smart contracts for water and electricity bill payments and record-keeping on the Cardano blockchain.
• Scope: Write secure and efficient Plutus/Haskell-based smart contracts to ensure accurate payment processing and immutable records.

1. Frontend Developer

• Role: Design and implement the user interface (UI) and user experience (UX) for the platform.
• Scope: Build a responsive, easy-to-use interface for customers to view bills, make payments, and track payment history on the blockchain.

1. Backend Developer

• Role: Handle backend infrastructure development, including database management and integration with utility companies' systems.
• Scope: Ensure the platform’s backend processes utility data securely, enabling smooth communication between customers and utility providers.

1. Compliance and Legal Advisor

• Role: Provide legal guidance and ensure compliance with local laws, utility regulations, and payment processing standards.
• Scope: Oversee legal requirements for smart contracts and the overall system, ensuring it meets all relevant regulations for utility payments.

1. Security Auditor

• Role: Conduct third-party security audits of the smart contracts and the platform, ensuring robustness and vulnerability assessments.
• Scope: Perform detailed security reviews and offer recommendations to address any potential security risks in the smart contract and payment process.

Additional Recruitment:

We plan to recruit team members with the following skills:

• Smart Contract Developer (Plutus/Haskell): To scale the smart contracts and ensure robust functionality for multiple utilities.
• UI/UX Specialist: To refine the user interface and improve user interactions for a smooth payment experience.
• Marketing Specialist: To handle the community outreach, promotion, and marketing campaigns for user onboarding and partnerships with utility providers.

We have engaged with key team members and are actively participating in the Cardano developer community via Discord and Telegram channels to ensure we have the necessary technical resources and support. The team members have confirmed their commitment to the project, ensuring that all necessary resources will be available to deliver the project successfully.

Each team member is aware of their roles and responsibilities, and we have secured initial collaboration with utility companies willing to integrate the system once the project is ready for testing.

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

Total Requested Funding: 110,000 ADA

1. Development Costs:

• Smart Contract Development:
• Creation and optimization of Plutus-based smart contracts for handling utility payments and automated record-keeping.
• Cost: 20,000 ADA

• Frontend Development:
• Development of a user-friendly interface for customers to view and pay their utility bills.
• Cost: 12,000 ADA

• Backend Development:
• Integration with utility provider systems and building the server-side logic for real-time communication with the blockchain.
• Cost: 10,000 ADA

• UI/UX Design:
• Designing an intuitive user interface with clear, accessible payment workflows.
• Cost: 5,000 ADA

2. Third-Party Services

• Security Audit:
• Third-party audit of the smart contracts and platform to ensure robust security and prevent vulnerabilities.
• Cost: 8,000 ADA
• Compliance & Legal Services:
• Consultation on legal and regulatory requirements for payment systems and smart contracts, ensuring compliance with local utility regulations.
• Cost: 6,000 ADA
• Server Hosting and Cloud Infrastructure:
• Hosting services to run the platform, supporting real-time utility payments and secure communication with providers.
• Estimated for 12 months.
• Cost: 5,000 ADA

3. Marketing, Promotion & Community Engagement

• Publicity Campaign:
• Launch of a marketing campaign to promote the platform to utility providers and end users.
• Cost: 10,000 ADA
• Community Engagement & User Onboarding:
• Creation of educational resources (guides, tutorials) and outreach to onboard users and utility providers.
• Cost: 7,000 ADA

4. Project Management & Reporting:

• Project Management:
• Managing timelines, resource allocation, and delivery of the project.
• Cost: 7,000 ADA
• Documentation & Reporting:
• Preparing technical documentation, user guides, and regular progress reports to share with the Cardano community.
• Cost: 4,000 ADA
• Final Project Close-out Video:
• Video production summarizing the project, highlighting impact, outcomes, and lessons learned.
• Cost: 5,000 ADA

5. Maintenance & Support:

• Ongoing System Maintenance:
• Continuous updates and improvements to the platform post-launch, including bug fixes and new features.
• Cost: 6,000 ADA
• User Support Services:
• Providing ongoing customer support for users, including live chat and helpdesk services.
• Cost: 5,000 ADA

Total Budget Breakdown

• Development Costs: 47,000 ADA
• Third-Party Services: 19,000 ADA
• Marketing, Promotion & Community Engagement: 17,000 ADA
• Project Management & Reporting: 16,000 ADA
• Maintenance & Support: 11,000 ADA

Grand Total: 110,000 ADA

This budget ensures all aspects of the project, from development and security to marketing and support, are covered. If additional funding is required, we will explore partnerships with utility providers or private investments to cover any excess.

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

This project offers substantial value for money by addressing a key challenge—efficient and transparent utility payments—while demonstrating Cardano’s blockchain capabilities. The costs are carefully considered and reflect industry standards for blockchain development and project execution, ensuring we deliver high-quality outcomes.

Cost Justification

1. Development Costs:

• Smart Contract Development: The cost for smart contract development is in line with the typical rates for blockchain developers specializing in Cardano’s Plutus and Haskell. Blockchain development rates can range from $100 to $200 per hour due to the specialized skills required. Our budget reflects this market rate while ensuring robust, secure contracts.
• Frontend and Backend Development: We’ve allocated reasonable costs for building both user-friendly interfaces and backend systems. Freelance development rates for such roles typically range from $50 to $150 per hour. We’ve ensured that the platform remains scalable while keeping costs proportional to industry standards.

1. Security Audit and Legal Services:

• Security Audit: Given the critical nature of security in financial transactions, the allocated budget for a third-party security audit is competitive with industry norms (typically between $10,000 and $20,000). Ensuring the platform is secure provides immense value to the ecosystem by preventing vulnerabilities.
• Compliance & Legal: Legal services are essential for compliance with payment and utility regulations. This budget ensures that all legal aspects are covered, reducing risks related to regulatory challenges.

1. Marketing and Community Engagement:

• A strong marketing and outreach plan is crucial to the success of any platform, especially one targeting utility providers and end users. We’ve allocated a reasonable budget to ensure that we can drive user adoption and onboard utility companies, maximizing Cardano’s exposure to real-world use cases.

1. Project Management and Maintenance:

• Effective project management is key to delivering on time and within budget, ensuring every ADA spent brings value. The post-launch maintenance and support budget ensures that the platform remains operational and can scale with user needs, providing ongoing value.

Long-Term Benefits

• Scalability: Once developed, this platform can be expanded to cover more utility services and regions, increasing its utility and value without significantly raising costs.
• Boosting Cardano’s Adoption: By integrating Cardano with essential public services like water and electricity payments, this project will demonstrate the practical uses of blockchain, driving broader adoption and encouraging other sectors to explore Cardano’s solutions.

Value to the Cardano Ecosystem

• This project showcases how Cardano can be used in everyday essential services, providing tangible value to consumers and utility providers. By building a decentralized, transparent system for utility payments, we are not only solving a real-world problem but also promoting Cardano’s blockchain as a reliable and scalable solution.

The careful allocation of resources ensures that the project delivers significant value at a reasonable cost, paving the way for Cardano’s integration into vital sectors while maintaining cost-efficiency.