AI-Powered Smart Contract Auditing Tool

[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)

We will build an AI-powered tool to automatically audit Cardano smart contracts, detecting vulnerabilities and providing recommendations, making auditing faster, more accurate, and cost-effective.

[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 made available under the MIT License, providing full transparency and allowing developers the freedom to utilize, alter, and share the code without limitations. This code will be hosted on GitHub, offering a clear and open platform for collaboration and engaging the community.

[METADATA] Horizons

[SOLUTION] Please describe your proposed solution

The AI-Powered Smart Contract Auditing Tool is designed to address the inefficiencies and high costs associated with manual auditing of smart contracts. As Cardano continues to grow and more developers build decentralized applications (dApps) on the platform, ensuring the security of smart contracts is critical to maintaining trust and preventing exploits that could damage the ecosystem’s reputation.

Problem Perception:

Manual auditing requires expert knowledge, significant time, and financial resources, making it inaccessible to many small-scale developers and new entrants. Moreover, the process is prone to human error, which increases the risk of vulnerabilities slipping through undetected. This leads to potential exploits, loss of funds, and reduced confidence in smart contracts.

Reasons for Our Approach:

We believe that leveraging artificial intelligence and machine learning for automated auditing provides an effective solution to this problem. AI can analyze large amounts of code quickly and identify patterns indicative of vulnerabilities with a high degree of accuracy. By automating the process, we make smart contract auditing faster, more affordable, and less prone to human error. Our approach democratizes security tools, ensuring that projects of all sizes can access high-quality auditing.

Who Will the Project Engage?

1. Cardano Developers: New and existing developers who want to deploy secure smart contracts on Cardano without incurring the high costs of manual auditing.
2. dApp Creators: Teams working on decentralized applications that require strong security and reliability in their smart contracts.
3. Cardano Ecosystem Participants: Individuals and organizations concerned about the security and integrity of dApps built on the platform.

How We Will Demonstrate or Prove Impact:

1. Development of an MVP: We will create a Minimum Viable Product (MVP) that allows users to upload their Plutus smart contracts for analysis and receive a detailed report highlighting vulnerabilities and areas for improvement.
2. Community Testing and Feedback: The MVP will be shared with the Cardano community for testing. Feedback will be collected to improve the tool and ensure it meets user expectations.
3. Measuring Security Improvements: We will track the number of vulnerabilities detected and fixed using the tool, as well as the number of smart contracts audited over time, to measure its impact on overall contract security.

What Makes Our Solution Unique?

The AI-Powered Smart Contract Auditing Tool is the first of its kind in the Cardano ecosystem. It provides automated, AI-driven auditing capabilities specifically tailored for Cardano’s Plutus smart contracts. By combining AI with blockchain, we create a tool that is not only accurate and efficient but also continuously learns from previous audits to enhance its detection capabilities.

Who Will Benefit and Why This is Important to Cardano:

• Cardano Developers: Access to an affordable and effective auditing solution will allow developers to deploy secure contracts with confidence, fostering innovation and reducing barriers to entry.
• Cardano Ecosystem: Improved contract security will lead to fewer exploits and hacks, increasing trust in the ecosystem and encouraging more projects to build on Cardano.

This project is crucial for the Cardano community because it addresses a key pain point for developers—contract security. By providing an accessible and automated solution, we will attract more developers, increase the quality of dApps, and strengthen the overall security of the Cardano ecosystem.

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

The AI-Powered Smart Contract Auditing Tool will have a transformative impact on the Cardano ecosystem by enhancing the security and reliability of smart contracts. By providing a solution that automates the process of detecting vulnerabilities, the project will foster a safer development environment and reduce the risk of exploits. This, in turn, will increase developer confidence, attract new projects, and ultimately lead to broader adoption of the Cardano blockchain.

Value to the Cardano Community:

1. Improved Security of Smart Contracts: With automated auditing, developers can identify and fix security issues before deploying their contracts, leading to fewer exploits and increased safety for users.
2. Lower Barriers for New Developers: By providing a cost-effective auditing solution, the tool will make it easier for small teams and new developers to deploy secure contracts, encouraging more innovation and participation within the Cardano ecosystem.
3. Increased Trust and Adoption: As more secure contracts are deployed, the overall trust in Cardano’s smart contract ecosystem will grow, attracting more users and projects to the platform.

How We Will Measure Impact:

1. Number of Smart Contracts Audited: Track the number of smart contracts audited using the tool to measure adoption and use within the community.
2. Number of Vulnerabilities Detected and Resolved: Measure the number of vulnerabilities identified and fixed as a result of using the tool, indicating its effectiveness in improving contract security.
3. Community Feedback and Satisfaction: Gather qualitative feedback from users and developers on the ease of use, accuracy, and value of the tool to assess its impact on the development process.

How We Will Share Outputs and Opportunities:

1. Community Updates and Reporting: Regular updates will be shared on Cardano forums, Project Catalyst, and social media channels to inform the community of progress, milestones, and key learnings.
2. Open Workshops and Webinars: We will host online workshops and webinars to demonstrate the tool, provide tutorials, and gather feedback from the community.
3. Documentation and Reports: Detailed documentation, reports, and guides will be made available to the community, outlining how to use the tool effectively and providing insights on its performance and impact.
4. Collaboration and Integration: We will explore partnerships with other Cardano projects to integrate the tool and extend its functionality, further increasing its utility and reach within the ecosystem.

The success of this project will bring significant value to the Cardano community by reducing security risks, promoting best practices in smart contract development, and making the ecosystem more accessible to developers of all skill levels. This, in turn, will contribute to the long-term growth, adoption, and resilience of the Cardano network.

[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 has a strong track record of successfully delivering blockchain-based projects, with extensive experience in smart contract development, security analysis, and AI-based solutions. We are committed to upholding the highest standards of transparency and accountability throughout the project’s lifecycle. Our expertise, combined with our proven processes for project management and financial oversight, ensures that we are well-equipped to deliver the AI-Powered Smart Contract Auditing Tool on time and within budget.

Team Capabilities and Expertise:

1. Blockchain and Smart Contract Development:
2. Our developers have deep expertise in building and auditing smart contracts, particularly on Cardano’s Plutus platform. We have successfully developed and deployed secure contracts for various projects within the Cardano ecosystem and beyond.
3. AI and Machine Learning Experience:
4. Our data science team specializes in building machine learning models and AI-based solutions for automating complex tasks. This experience is crucial in developing the core capabilities of the auditing tool.
5. Project Management and Delivery:
6. Our project managers have experience coordinating cross-functional teams, ensuring that milestones are achieved on time and that all activities are aligned with project objectives. We follow best practices for Agile project management, enabling us to adapt quickly and respond to changing requirements.
7. Previous Catalyst Experience:
8. We have previously engaged with Project Catalyst and have a thorough understanding of the expectations, guidelines, and reporting requirements. Our familiarity with the process enables us to manage funds responsibly and maintain accountability throughout the project.

Steps and Processes to Validate Feasibility:

1. Technical Feasibility Study:
2. Conduct a comprehensive technical feasibility study to evaluate the capability of AI models to detect smart contract vulnerabilities specific to Cardano’s Plutus framework. This study will include researching existing vulnerabilities, analyzing smart contract code structures, and identifying potential detection methods.
3. Proof of Concept Development:
4. Develop a small-scale proof of concept to test key functionalities, such as vulnerability detection and report generation. This will help validate our approach and ensure that the tool’s core mechanisms work as expected.
5. Community Testing and Feedback Loop:
6. Engage the Cardano developer community early in the process to gather feedback on the proof of concept. Use this feedback to refine the tool, add features that meet user needs, and improve overall usability.
7. Scalability and Performance Testing:
8. Test the tool with various smart contracts to ensure it can handle different code structures, scales effectively, and maintains high performance and accuracy.

Trust and Accountability Measures:

1. Milestone-based Funding and Reporting:
2. We will implement a milestone-based fund management approach, where funds are released based on the successful completion of predefined project milestones. This ensures that funds are used effectively and that progress can be measured and verified at each stage.
3. Transparent Communication and Documentation:
4. We will maintain open communication with the community and Project Catalyst team through regular updates, detailed reports, and documentation. This includes sharing progress updates, financial reports, and technical documentation.
5. Independent Code Audits and Reviews:
6. We will subject the tool’s codebase to independent audits to verify the security, accuracy, and integrity of our solution. These audits will be conducted by reputable third-party firms and shared with the community.
7. Open Source Contribution and Community Involvement:
8. While the entire project may not be open-source initially, we will consider open-sourcing key components of the auditing tool to promote transparency and allow for community contributions. This will enable developers to review and validate the code, suggest improvements, and collaborate with us to enhance the tool.

By adhering to these processes and leveraging our team’s expertise, we ensure that the AI-Powered Smart Contract Auditing Tool is delivered with high levels of trust, accountability, and quality.

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

1. Design & Architecture Planning:

Description: The first milestone focuses on creating the design, user interface (UI), and overall architecture of the AI-Powered Smart Contract Auditing Tool.

Deliverables:

• Completed UI/UX designs and wireframes.
• System and technical architecture.

Frontend Development:

Description: Develop the frontend interface based on the finalized UI/UX designs. This includes building pages for contract upload, report viewing, user interaction, and navigation.

Deliverables:

• Fully functional frontend interface with intuitive navigation.
• Integration with backend APIs for data handling.

1. Backend Development:

Description: Develop the backend infrastructure that supports data management, user authentication, and interactions with AI models.

Deliverables:

• Backend services to manage user data, smart contract uploads, and interactions.
• APIs for frontend-backend communication.

Smart Contract Integration & AI Model Development:

Description: Develop and integrate Cardano smart contracts for automated auditing and payment mechanisms. 

• Smart contracts for auditing functionalities and automated reporting.
• AI models for detecting smart contract vulnerabilities.
• Integration of AI models with backend services.

MVP Development, Testing & Documentation:

Description: Finalize the integration of frontend, backend, and smart contracts to develop a fully functional Minimum Viable Product (MVP). 

Deliverables:

• Fully functional MVP ready for deployment on Cardano testnet/mainnet.
• Documentation, including user guides, developer documentation, and a final project report.
• Project close out report and video

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

1: Yosef Daniel: Software Engineer | Technical Lead

• Experienced in programming languages such as Plutus, Haskell, Lucid, Mesh and Marlowe to build and deploy smart contracts.
• Cardano Blockchain Certified Associate (CBCA)
• Experience: Proficient in server-side programming languages, database management, and API integration.
• Responsible for backend development and platform integration.

Responsibilities:

• Linkedin Profilel: Linkedin
• Responsible for smart contracts and blockchain related technology's.
• Proficient in server-side programming languages.
• Experienced in database management and API integration.

2: Naod Ararsa: Full-stake developer

• Programming Language: JavaScript, C, C++, Typescript, python, and haskell
• Library’s and Frameworks: Plutus, Node js, Fastify, Express js, hardhat, React Js, Flask
• Databases: Mongodb and MySQL
• ORM and ODM: mongoose, Drizzle and sequelize
• Linkedin
• Github

3: Meheret B.: Project Manager/Technical Lead

• Cardano Blockchain Certified Associate (CBCA)
• Email: anulomeheret@gmail.com
• Role: Oversees project execution, manages resources, and ensures timely delivery.

Our team has actively participated in numerous projects closely related to this endeavor. Each team member is fully committed to executing this idea, drawing from our collective experience in implementing similar projects to a high standard of excellence

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

Design & Architecture Planning: 12,900 ADA

Description: The first milestone focuses on creating the design, user interface (UI), and overall architecture of the AI-Powered Smart Contract Auditing Tool.

Frontend Development: 19,000 ADA

Description: Develop the frontend interface based on the finalized UI/UX designs. This includes building pages for contract upload, report viewing, user interaction, and navigation.

Backend Development: 21,000 ADA

Description: Develop the backend infrastructure that supports data management, user authentication, and interactions with AI models.

Smart Contract Integration & AI Model Development: 24,000 ADA

Description: Develop and integrate Cardano smart contracts for automated auditing and payment mechanisms. 

MVP Development, Testing & Documentation: 21,000 ADA

Description: Finalize the integration of frontend, backend, and smart contracts to develop a fully functional Minimum Viable Product (MVP). 

Total: 97,900 ADA

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

The proposed budget for the AI-Powered Smart Contract Auditing Tool represents excellent value for the Cardano ecosystem by addressing a critical need: the security and reliability of smart contracts. By providing an automated auditing tool, we lower the barrier for developers and project teams to secure their smart contracts, which in turn increases trust and adoption of the Cardano blockchain.

Why This Project Represents Value for Money:

1. Increased Security and Reduced Risks:

• The tool helps identify and fix vulnerabilities early in the development process, preventing costly exploits and losses. A single security breach can cause damage worth millions, whereas this project aims to prevent such incidents through cost-effective and automated auditing.
• Ensuring that contracts are secure before deployment protects users and the ecosystem, reducing the risk of hacks and strengthening trust in the Cardano network.

1. Cost-Effective Auditing for All Projects:

• Manual smart contract audits can be prohibitively expensive, especially for smaller projects or new developers. This tool provides a more affordable and accessible alternative, promoting inclusivity and enabling more developers to deploy secure contracts without incurring high costs.
• By automating the auditing process, we reduce the dependency on specialized auditors, driving down overall costs in the ecosystem.

1. Promotes Innovation and Adoption:

• The tool will empower more developers to build on Cardano, knowing that they have access to an efficient and reliable security solution. This encourages innovation and expands the pool of dApps and projects in the ecosystem.
• Lowering the cost and complexity of smart contract security will make Cardano an attractive option for new projects, increasing ecosystem growth.

1. Strategic Use of Funds:

• Our budget allocation is carefully planned, focusing on core development areas like AI model training, smart contract development, and frontend-backend integration. Each expenditure is tied directly to deliverables that provide tangible value to the community.
• The team’s experience and proven track record reduce the risk of budget overruns and ensure that the project stays on track and within scope.

1. Long-Term Value Creation:

• Once developed, the tool will be a long-term asset for the Cardano ecosystem, capable of being used by multiple projects and initiatives. This creates value far beyond the initial investment, as the tool will continue to support the community for years to come.

By delivering a robust solution that addresses a critical security need at a fraction of the cost of traditional audits, this project represents significant value for money for the Cardano ecosystem. It supports the long-term growth, adoption, and security of the network, making it a worthy investment for Catalyst funding.