Cardano Community-Backed Decentralized Escrow and Trust Service

[GENERAL] Name and surname of main applicant

Tomilola Onigbinde

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

Entity (Incorporated)

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

10

[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)

Create a decentralized escrow service using Cardano smart contracts to hold funds and community voting to resolve disputes and give quality assurance.

[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?

Yes

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

MIT License

[METADATA] Horizons

Business Services

[SOLUTION] Please describe your proposed solution

The core problem is the lack of trust and fairness within freelancing platforms and digital goods/services marketplaces. Current escrow services are centralized and often biased, usually favoring buyers during disputes. Sellers frequently suffer non-payment even after delivering satisfactory work, while buyers sometimes lack the technical expertise to assess whether what they received meets agreed-upon standards. This imbalance leads to frequent disputes and financial losses for both parties.

What are your reasons for approaching it in the way that we have?

We believe that decentralization, smart contracts, and community governance can address these issues more fairly and transparently. By leveraging the Cardano blockchain, we can build a trustless escrow service where transactions are governed by immutable smart contracts. These smart contracts will automate payments based on predefined conditions, removing the need for trust in a central authority.

Furthermore, our decentralized community-driven dispute resolution process ensures that disputes are resolved fairly by allowing community members to vote based on evidence provided by both the buyer and seller. This democratic approach will eliminate the bias that often exists in centralized platforms, ensuring a fair outcome for both parties.

Who will your project engage?

Our project will engage multiple stakeholders:

1. Freelancers and Sellers: They will benefit from fairer payment processes and greater assurance that they will receive payment for their work upon fulfilling their obligations.
2. Buyers: Buyers gain security knowing that their funds are protected until they confirm that the work or goods meet their expectations. If a dispute arises, the decentralized community will provide a fair assessment.
3. The Cardano Community: Active participants in the Cardano ecosystem can engage in dispute resolution through community voting, making them key players in maintaining the fairness and transparency of the platform.

How will you demonstrate or prove your impact?

We will measure the impact of our solution through several metrics:

1. Community Participation: The number of Cardano users participating in dispute resolution, demonstrating the system’s decentralization and engagement.
2. User Feedback: Both buyers and sellers will be surveyed to gauge their satisfaction with the fairness, transparency, and efficiency of the platform.
3. Number of Successful Dispute Resolution : The number of sellers and buyers using the system to resolve their disputes
4. Number of quality assurance checks: The number of buyers using the system to perform quality assurance on the work they have received through community voting.

Additionally, smart contracts and the transparent nature of the blockchain will allow us to audit the process, ensuring accountability for every transaction.

What is unique about your solution?

Our solution is unique because it combines three core elements that do not exist TOGETHER in traditional escrow services:

1. Cardano Smart Contracts: Automating payments and holding funds securely based on transaction outcomes, without the need for intermediaries.
2. Community-Driven Dispute Resolution: Instead of a centralized authority resolving disputes, our decentralized community votes on the outcome based on evidence, ensuring fairness for both parties.
3. Tamper-Proof System: The use of blockchain ensures that no party can manipulate the transaction process or the evidence in disputes, creating a fully transparent system.

Who will benefit, and why is this important to Cardano?

• Freelancers and sellers will benefit from reliable payments and protection from buyer manipulation.
• Buyers will benefit from secure escrow holding until their expectations are met, along with community support in resolving disputes if they lack the technical expertise.

This is important to Cardano because it showcases the power of blockchain technology in solving real-world problems, especially in trust and transaction fairness. It also promotes greater engagement from the Cardano community through decentralized governance, highlighting the platform's potential for driving transparency, fairness, and innovation.

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

Positive Impact on the Cardano Community:

Our decentralized escrow and trust service will provide significant value to the Cardano community by showcasing the practical utility of the blockchain’s smart contract functionality in solving real-world issues. It will demonstrate how decentralized, trustless systems can replace traditional, biased platforms, promoting fairness and transparency in online transactions. Specifically:

• Enhanced Community Engagement: Our dispute resolution process allows community members to participate and vote on outcomes, promoting decentralization and active involvement from the Cardano community.
• Increased Trust in Digital Transactions: By eliminating the bias present in centralized escrow services, we will increase trust in the Cardano ecosystem, making it a go-to platform for secure digital transactions.
• Showcasing Cardano’s Potential: This project will be a use case for Cardano’s smart contracts, driving adoption by other developers and businesses looking for fair and transparent solutions.
• Attracting New Users: Freelancers, sellers, and buyers from outside the blockchain space will be attracted to Cardano due to its fair, decentralized escrow system, leading to ecosystem growth.

How Will We Measure Impact?

We will employ both quantitative and qualitative methods to assess the project’s success:

Quantitative Measures:

• Number of Transactions: Tracking the number of completed escrow transactions to show adoption.
• Dispute Resolution Success: Measuring how many disputes are successfully resolved through community voting.
• Growth of Community Participation: Monitoring the number of Cardano community members engaged in voting for dispute resolutions.
• Escrow Satisfaction Rate: Surveys will gauge the percentage of satisfied buyers and sellers with the fairness and transparency of the process.
• User Growth: Tracking how many new users join Cardano to use our escrow service.

Qualitative Measures:

• User Feedback: Collecting in-depth feedback from both buyers and sellers to understand their experience and identify areas for improvement.
• Community Sentiment: Gathering feedback from the Cardano community on their engagement in dispute resolution and the overall perception of this decentralized system.
• Case Studies: Developing success stories and case studies of key transactions that highlight how our solution helped resolve disputes fairly.

How Will We Share the Outputs?

We will actively share our outputs and the opportunities that result from the project in the following ways:

• Open-Source Codebase: We will release the smart contracts as open-source, allowing developers to study and potentially integrate them into other Cardano-based projects.
• Community Updates: Regular updates on progress and key milestones will be shared via Cardano forums, Catalyst community meetings, and social media platforms (Twitter, Discord).
• Detailed Reports: We will publish regular impact reports detailing transaction volumes, user feedback, and community participation.
• Educational Materials: We will create educational content and tutorials to guide new users and developers in using and understanding the decentralized escrow system.
• Partnerships with Other Cardano Projects: We will explore partnerships with other projects in the Cardano ecosystem to integrate our decentralized escrow service as part of a wider offering for buyers and sellers.

In summary, the success of our project will not only bring direct value to those seeking fair and trustworthy online transactions but also further Cardano’s reputation as a blockchain platform that promotes transparency, fairness, and community-driven governance. The resulting growth in users and ecosystem engagement will contribute to the broader success 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?

Capability to Deliver the Project

Our team is uniquely positioned to deliver this project due to our deep technical expertise, passion for blockchain, and firsthand experience with the challenges faced in online transactions.

1. Love for Blockchain & Web Development Expertise: With over 8 years of experience in web development, our team has a strong foundation in building robust, scalable online platforms. Coupled with a genuine love for blockchain technology, we have fully embraced decentralized systems and smart contracts, making us well-equipped to create a secure and trustless escrow solution on Cardano.
2. Firsthand Marketplace Experience: We have firsthand experience as freelancers, buyers, and sellers on various freelance platforms and marketplaces. This intimate knowledge of the frustrations caused by biased dispute resolution systems and platform favoritism toward buyers allows us to deeply understand the problem we're solving. We've personally witnessed the shortcomings and can design a solution that addresses these pain points effectively.

With our deep understanding of both the technical and user-experience aspects, we are confident in our ability to create a decentralized escrow service that meets the needs of buyers, sellers, and the broader Cardano community.

Validating the Feasibility

We plan to ensure the feasibility of our approach through the following steps:

1. Proof of Concept (PoC): We will start by developing a minimum viable product (MVP) of the escrow service, which will include a basic version of the smart contract and dispute resolution process. This MVP will allow us to test the core functionality in real-world scenarios with a small group of users, verifying that the system works as expected and adjusting where necessary.
2. Community Feedback: Early involvement of the Cardano community is essential. We will launch the MVP within the Cardano community and seek continuous feedback, which will help us validate whether the approach meets the expectations of buyers, sellers, and participants in dispute resolution.
3. Security Audits: Given the importance of trust and security, we will subject the smart contracts to third-party audits by reputable blockchain security firms to ensure they are robust, free of vulnerabilities, and meet industry standards.
4. Scalability Testing: We will conduct load and stress testing to validate that the platform can handle increasing numbers of users and transactions. Scalability is crucial to ensure long-term feasibility and adoption within the Cardano ecosystem.

Proper Fund Management

We are committed to managing funds with transparency and accountability. Our team has a proven track record in handling projects, including working with NGOs that have funded community initiatives. We successfully delivered those projects, demonstrating our ability to manage funds responsibly and ensure that projects are completed on time and within scope.

To further ensure proper fund management for this project, we will:

1. Transparent Budgeting: We will provide a detailed and transparent breakdown of how the funds will be allocated, including costs for development, security audits, community engagement, and marketing. Regular financial updates will be shared with the community.
2. Regular Progress Updates: We will issue frequent updates on project progress, including development milestones, transaction statistics, and financial reporting, keeping the community informed at all times.
3. External Audit and Reporting: At the end of the project, we will conduct an external audit to verify fund usage and project outcomes. This will provide the Cardano community with an objective evaluation of how the funds were managed and how well the project was executed.

Our previous experience with NGO-funded community projects strengthens our ability to manage and allocate resources effectively, ensuring that we maintain trust and accountability throughout the project.

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

Smart Contract Development

A: Milestone Outputs

• Initial smart contract developed to handle escrow transactions.
• Contract includes functionalities for fund transfers, buyer-seller dispute resolution, and community voting mechanisms.

B: Acceptance Criteria

• The smart contract must successfully process test transactions where funds are held and released upon agreement by both buyer and seller.
• Dispute resolution mechanism must allow for community voting and automatic fund distribution based on consensus.

C: Evidence of Milestone Completion

• Video demonstration and testnet transactions showing the smart contract in action.
• Public access to the code on GitHub for community review.

User Interface (UI) & Experience (UX) Design

A: Milestone Outputs

• A fully designed user interface for the escrow service, including buyer-seller dashboards, transaction history, and dispute resolution pages.
• Wireframes and mockups of the platform, focused on ease of use.

B: Acceptance Criteria

• A functioning prototype that allows users to simulate the flow of transactions, including payment and dispute resolution.
• User feedback collected from a small group of beta testers to verify usability.

C: Evidence of Milestone Completion

• Prototype available for testing with selected community members.
• Feedback report detailing responses from initial testers and steps for improvement.

Integration with Cardano Blockchain

A: Milestone Outputs

• Successful integration of the escrow platform with the Cardano blockchain, enabling live smart contract functionality.
• Implementation of a wallet connection for buyers and sellers to interact directly with the platform.

B: Acceptance Criteria

• Escrow transactions completed live on the Cardano mainnet, with funds transferred according to contract rules.
• End-to-end transaction tested with real wallets.

C: Evidence of Milestone Completion

• Screenshots and transaction links from Cardano explorer proving completion of on-chain transactions.
• Public wallet addresses used for test transactions shared with the community for verification

Full-Scale Platform Launch

A: Milestone Outputs

• Final launch of the escrow platform for public use, including buyer and seller onboarding, dispute resolution, and full integration with the Cardano blockchain.
• Full marketing and community engagement campaign to drive adoption.

B: Acceptance Criteria

• Platform fully operational with real user transactions and a fully functioning community voting dispute resolution system.
• User adoption metrics such as the number of active users and successful transactions.

C: Evidence of Milestone Completion

• Usage statistics and transaction data publicly available on the platform.
• Community testimonials and feedback confirming the success and usability of the platform.

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

1.Lead: Tomilola Onigbinde (Software Engineer)

• Role: Project Lead and Backend Developer
• Experience: Over 8 years of experience in software engineering with a passion for blockchain technology and extensive experience in web development. Tomilola will oversee the project’s execution, focusing on backend architecture and integration with the Cardano blockchain.
• LinkedIn: Tomilola Onigbinde

2.Co-Proposer: Morakinyo Dada (Product Designer)

• Role: Product Design and Strategy
• Experience: Morakinyo brings expertise in product design, ensuring that the escrow service is intuitive and meets user needs. He will be responsible for conceptualizing the product, ensuring alignment with user experience goals, and overseeing the design process.
• LinkedIn: Morakinyo Dada

3.UI/UX Designer & Frontend Developer: Rodiat Osuolale

• Role: UI/UX Design and Frontend Development
• Experience: With a background in both UI/UX design and frontend development, Rodiat will create the user interfaces and ensure seamless interaction flows across the platform, focusing on ease of use and functionality.
• Linkedin: Rodiat Osuolale

We will be hiring additional Smart Contract and Blockchain Developers with specific expertise in building decentralized applications (dApps) on Cardano. They will be tasked with writing and auditing the smart contracts, ensuring security, and integrating blockchain features into the platform.

By assembling a well-rounded team with diverse skills, we are confident in delivering a user-friendly and secure decentralized escrow solution on the Cardano platform.

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

Total Requested Budget: $31,500 (₳90,000)

1. Smart Contract & Blockchain Development

Cost: $10,000

Details:

• Developers: Hire experienced blockchain and smart contract developers to create and deploy the escrow service on the Cardano blockchain.
• Code Auditing: Ensure the smart contracts are secure and function as intended through a third-party audit.

Breakdown:

• Developer salaries: $8,000
• Code auditing: $2,000

2. User Interface (UI) & Experience (UX) Design

Cost: $5,000 (14,500 ADA)

Details:

• Design: Create wireframes, prototypes, and interface designs to ensure a user-friendly experience.
• Frontend Development: Implement the UI and make sure it's seamlessly integrated with blockchain interactions.

Breakdown:

• UI/UX Design & Prototyping: $2,500
• Frontend Development: $2,500

3. Marketing & Community Engagement

Cost: $4,000

Details:

• Promotion: Run campaigns to raise awareness and attract users within the Cardano ecosystem.
• Community Engagement: Organize events and webinars to foster trust and adoption within the Cardano community.

Breakdown:

• Marketing campaign: $2,500
• Community outreach (events, webinars): $1,500

4. Project Management

Cost: $3,500

Details:

• Coordination: Oversee the project timeline and ensure everything is delivered on time.
• Reporting: Provide regular progress updates to stakeholders and the Cardano community.

Breakdown:

• Project Manager salary: $3,500

5. Third-Party Services

Cost: $2,500

Details:

• Legal & Accounting: Ensure compliance with all regulations and proper fund management.
• Platform Hosting & Security: Maintain secure hosting for the platform.

Breakdown:

• Legal and accounting services: $1,500
• Platform hosting & security: $1,000

6. Documentation & Reporting

Cost: $2,000

Details:

• Technical Documentation: Prepare detailed documentation on smart contract operations and user guidelines.
• Reporting: Provide regular updates to the community on project progress and completion.

Breakdown:

• Technical writer: $1,500
• Reporting: $500

7. Miscellaneous

Cost: $1,500

Details:

• This will cover any unforeseen costs, including additional minor expenses that arise during development and launch.

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

The cost of this project represents strong value for money for the Cardano ecosystem in several key ways:

1. Proportional to Industry Standards: The budget for smart contract and blockchain development, UI/UX design, and other critical areas are in line with typical freelance rates in the blockchain and web development industries. For example, smart contract development requires specialized expertise, and the allocated $10,000 is a competitive rate for the talent and security auditing necessary to create a robust, decentralized escrow service.
2. Efficient Resource Allocation: We have prioritized cost-effectiveness by focusing our spending on essential services and minimizing overhead costs. Our team has firsthand experience as freelancers and buyers on various platforms, which helps us create a system tailored to real-world needs without unnecessary expenditures.
3. High Impact for Low Cost: The total budget of $31,500 is reasonable compared to the potential long-term benefits the escrow service could provide for the Cardano ecosystem. The decentralized escrow service has the potential to drastically improve trust in transactions on the platform, which could lead to increased adoption, engagement, and transaction volume within the community.
4. Supporting Future Growth: The project is designed to offer a scalable solution that can be reused and expanded to support more complex use cases in the future, such as freelance platforms, NFT marketplaces, and more. This scalability makes the initial investment highly cost-efficient over time.

By ensuring each cost is tied directly to a necessary and impactful output, and by aligning the budget with market standards, this proposal represents an efficient and strategic use of Cardano’s funds.