Midnight and Self-Sovereign Identity enabled Money Transfers

[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 propose developing a P2P platform using Midnight to facilitate fast, secure, and low-cost transnational money transfers with integrated Cardano Self-Sovereign identity (SSI) solution

[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 platform’s development will be fully open-sourced under the MIT License. This includes the smart contracts and the digital identity solutions used, fostering community collaboration and transparency.

[METADATA] Horizons

[SOLUTION] Please describe your proposed solution

Problem Perception:

International money transfers, particularly for individuals in developing countries, are often plagued by high fees, delays, and security risks. Traditional financial systems charge excessive fees and rely on outdated infrastructures that slow down the process, leaving millions of individuals without timely access to funds. This disproportionately impacts low-income individuals and their families who rely on remittances for daily needs.

Approach:

Our approach leverages blockchain technology, particularly the privacy-focused features of the Midnight blockchain, to create a decentralized peer-to-peer (P2P) platform for fast, secure, and low-cost transnational money transfers. The solution will integrate Cardano's self-sovereign identity (SSI) to ensure secure verification without compromising user privacy.

We are focusing on a platform that directly connects users, eliminating the need for intermediaries such as banks or traditional financial institutions. By using smart contracts and decentralized storage, we will ensure that transactions are automated, secure, and irreversible, reducing the likelihood of fraud or human error. Our unique integration with self-sovereign identity will protect users' data, giving them control over their personal information, which is vital in markets where identity theft and fraud are common.

Engagement:

Our project will engage:

• Individuals in developing countries who rely on remittances for financial support. These users will benefit from lower fees and faster access to funds.
• Small businesses that engage in international trade and require affordable cross-border payment solutions.
• Government entities interested in adopting blockchain technology for secure, transparent transactions, especially those looking to streamline financial processes and remittances.

Impact Demonstration:

We will demonstrate our impact by:

1. Tracking the number of users onboarded and the volume of funds transferred via the platfor
2. Gathering feedback from users regarding the speed, cost, and security of their transactions compared to traditional method
3. Partnering with remittance-dependent communities and documenting improvements in their financial inclusion and access to service

Unique Aspects:

• Privacy-Focused: Unlike traditional remittance services, our platform will prioritize user privacy by integrating Midnight’s privacy-preserving features and self-sovereign identity for secure access and identity verification.
• Cost Efficiency: The elimination of intermediaries, combined with Cardano’s low transaction costs, will significantly reduce the cost of international transfers.
• Scalability & Security: Built on Cardano’s scalable infrastructure and using robust smart contract mechanisms, the platform will ensure secure, fast, and reliable transfers.
• Global Reach: This solution offers a decentralized model that can scale globally, providing services to regions where financial infrastructure is lacking or overly expensive.

Beneficiaries:

The project will benefit:

• Underserved communities and low-income individuals who face barriers to affordable, secure, and fast international payments.
• Small and medium-sized enterprises (SMEs) that rely on international transfers for business transactions.
• Cardano Ecosystem: By driving adoption of Cardano’s blockchain for real-world financial solutions, the project will increase network usage, transaction volumes, and visibility for decentralized finance (DeFi) applications.

Importance to Cardano:

This project will showcase Cardano as a practical solution for addressing global financial issues, particularly in underserved markets. By providing a secure, scalable, and affordable financial tool, we will highlight Cardano's strength in enabling decentralized applications that provide real-world value. This will help drive adoption, increase transaction volumes on the network, and position Cardano as a leader in decentralized finance solutions.

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

Positive Impact on the Cardano Community:

This project will have a transformative impact on the wider Cardano community by addressing a real-world problem—costly, delayed, and insecure international money transfers—through the use of Cardano’s blockchain technology. By successfully deploying a decentralized, privacy-focused platform for international remittances, we will highlight Cardano’s capacity to solve complex financial challenges. 

Our solution will contribute to the global adoption of Cardano by increasing the visibility and usage of the network, particularly in regions where financial inclusion is limited. Moreover, the platform will act as a gateway for users new to blockchain technology, bringing more individuals and businesses into the Cardano ecosystem. By engaging governments and small businesses, the project will showcase how blockchain technology can integrate with existing financial systems and improve efficiency, privacy, and trust.

How the Project Brings Value to the Cardano Community:

• Increased Transaction Volumes: As the platform facilitates fast, low-cost international money transfers, the number of transactions on the Cardano network will increase, contributing to network activity and showcasing the scalability of the blockchai

• Enhanced Visibility: By addressing a global issue with significant societal impact, the project will generate attention and attract new users to Cardano, particularly in regions with poor financial infrastructur

• Broadened Adoption of Cardano dApps: The platform will introduce new users and businesses to Cardano’s decentralized applications (dApps), encouraging more widespread adoption across multiple sectors, including finance, trade, and governmen

• Privacy and Security Leadership: With the integration of Midnight’s privacy-preserving features and self-sovereign identity (SSI), the platform will position Cardano as a leader in privacy-focused financial solutions, appealing to users who prioritize data securit

Impact Measurement:

We will measure the impact of the project using both quantitative and qualitative metrics:

• Quantitative Metrics:
• Number of Active Users: Track the number of individuals and businesses using the platform for international money transfers.
• Transaction Volume: Measure the total volume of funds transferred through the platform.
• Cost Savings: Calculate the cost savings for users compared to traditional remittance services.
• Geographic Reach: Track the regions and countries where users are actively participating on the platform.

• Qualitative Metrics:
• User Satisfaction: Gather user feedback on the platform’s speed, cost, and security compared to traditional services.
• Business and Government Partnerships: Measure the number of partnerships formed with institutions, businesses, and governments for using the platform.

Sharing Outputs and Opportunities:

• Community Reports: We will regularly share updates, metrics, and findings with the Cardano community through progress reports and presentations, ensuring transparency and engagemen

• Open-Source Contributions: All relevant code, documentation, and smart contracts will be open-sourced, allowing the Cardano developer community to review, contribute to, and build upon our wor

• Workshops and Webinars: We will organize virtual workshops and webinars to share insights, success stories, and challenges faced during the project, fostering a collaborative learning environment within the Cardano communit

• Partnerships and Collaborations: We will actively engage with governments, businesses, and non-profit organizations to expand the use of Cardano’s blockchain technology in real-world application

By ensuring open access to our project’s outputs and actively engaging the Cardano community, this project will create long-term value for the entire ecosystem, positioning Cardano as a leading blockchain platform for solving global financial challenges.

[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, led by William Shelton, combines a deep understanding of blockchain technology with real-world financial expertise, positioning us uniquely to address the challenges of cross-border money transfers. Unlike others, we are not just technologists—we are experts in financial ecosystems, bringing together knowledge from both the traditional finance world and decentralized systems to create a solution that’s truly transformative.

Unique Strengths:

• Cross-Disciplinary Expertise: Our team includes professionals with extensive experience in financial regulation, blockchain implementation, and global remittance systems. This fusion allows us to craft a solution that is secure, compliant, and highly scalable.
• Proven Track Record: William Shelton has led multiple successful blockchain-based projects, combining technological innovation with practical financial applications. Our advisors bring expertise from finance, law, and technology, ensuring we navigate all aspects of the project with precision.
• Tailored for Real-World Use: What sets us apart is our ability to bridge the gap between traditional financial services and decentralized blockchain systems. Our solution isn't theoretical—we have the expertise to make it work in complex, real-world environments.

Validation of Feasibility:

• Targeted Testing: We will focus on real-world pilot programs with selected remittance networks to ensure our solution meets the needs of users, especially in developing markets where security, speed, and low costs are essential.
• Iterative Development: Instead of a single launch, we will implement the solution in phases, with feedback loops built into the process to refine the platform based on real-time use cases.
• Partnerships with Financial Institutions: By collaborating early with global remittance providers, we ensure that our solution integrates seamlessly into existing systems while expanding Cardano’s reach into mainstream financial markets.

Fund Management:

• Milestone-Based Funding: Funds will be carefully allocated at each stage of the project, tied directly to measurable deliverables. Each milestone will focus on achieving specific objectives, such as developing the dApp architecture, testing smart contracts, and scaling with institutional partners.
• Transparent Auditing: We are committed to transparency, with quarterly reports shared with the Cardano community. Independent audits of our smart contracts and financial flows will ensure every ADA is accounted for, reinforcing trust in our approach.

This distinct blend of blockchain innovation with deep financial expertise ensures that our project is built to last, creating a truly unique value proposition for the Cardano ecosystem.

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

Milestone 1: Initial Architecture and Concept Development

Timeframe: Months 1-3

Objective: Establish the core architecture of the cross-border remittance platform and begin preliminary development.

Outputs:

• Completed platform architecture design, including blockchain integration, wallet system, and KYC features.
• Initial partnerships with remittance networks and financial institutions established.
• User flow diagrams and wireframes for the platform’s interface.
• Defined security protocols and smart contract structure.

Acceptance Criteria:

Finalized architecture design and partnership agreements, validated by external experts and stakeholders.

Milestone 2: Smart Contract Development and Testing

Timeframe: Months 4-6

Objective: Develop and test the platform's smart contracts to handle remittance transactions securely.

Outputs:

• Smart contracts developed for secure and transparent transaction processing.
• Deployed smart contracts on the Cardano testnet for testing and validation.
• Initial testing completed with mock transactions.
• Security audit initiated to ensure the robustness of the contracts.

Acceptance Criteria:

Successfully deployed and tested smart contracts on the Cardano testnet, with initial audit results ensuring security and functionality.

Milestone 3: Integration and Beta Testing

Timeframe: Months 7-9

Objective: Integrate the platform with financial institutions and remittance networks, followed by beta testing with real users.

Outputs:

• Platform integrated with key remittance and banking partners.
• Beta testing with selected users across key regions.
• Feedback collection from users and partners.
• Refinement of platform features based on feedback.

Acceptance Criteria:

Completion of integration with financial systems and successful beta testing with positive user feedback reports.

Final Milestone: Full Platform Launch and Project Close-Out

Timeframe: Months 10-12

Objective: Complete the full launch of the remittance platform, with documentation, audits, and final reporting.

Outputs:

• Full platform launch, including mobile and web versions.
• Onboarding of users and remittance partners.
• Final security audit completed to ensure platform stability.
• Submission of the project close-out report and video.
• Open-source release of smart contracts and relevant documentation.

Acceptance Criteria:

Successful full platform deployment, onboarding of pilot users, completion of final audit and reporting, with all documentation and videos submitted to the community.

[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

Total Funding Request: 150,000 ADA

• Platform Architecture and Development
• Total Cost: 50,000 ADA
• Description: Development of the remittance platform's architecture, user interface, and core features (wallet system, blockchain integration, KYC features). This stage includes setting up secure protocols and establishing partnerships with remittance networks and financial institutions.
• Breakdown:
• Architecture design: 15,000 ADA
• Backend development: 15,000 ADA
• Frontend user interface: 10,000 ADA
• Security protocols and testing: 10,000 ADA

• Smart Contract Development & Auditing
• Total Cost: 30,000 ADA
• Description: Creation of smart contracts to automate secure, fast, and transparent transactions. Includes testing and security audits to ensure the integrity of the system.
• Breakdown:
• Smart contract development: 20,000 ADA
• Security audit: 10,000 ADA

• Partnerships, Licensing, and Regulatory Compliance
• Total Cost: 35,000 ADA
• Description: Engaging with regulators, acquiring licenses, and building partnerships with local financial institutions and international remittance service providers.
• Breakdown:
• Licensing and compliance: 20,000 ADA
• Partnership development and agreements: 15,000 ADA

• Marketing, Community Engagement, and User Acquisition
• Total Cost: 25,000 ADA
• Description: Launching marketing campaigns and engaging the community to drive user acquisition and adoption. This includes PR, online campaigns, and workshops to onboard users and build trust in the platform.
• Breakdown:
• Marketing and PR: 15,000 ADA
• Community engagement and workshops: 10,000 ADA

• Project Management and Operations
• Total Cost: 10,000 ADA
• Description: Managing the project, coordinating with the development team, ensuring timelines are met, and maintaining transparency with stakeholders through regular updates and reporting.
• Breakdown:
• Project management: 6,000 ADA
• Reporting and operational overhead: 4,000 ADA

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

The 150,000 ADA budget for this project provides a strategic and impactful investment into the Cardano ecosystem, with a clear focus on solving the problem of expensive, slow, and insecure international remittances. The cost breakdown reflects a tailored approach that ensures not only the platform's success but also the long-term value it will generate for the ecosystem.

• Efficient Allocation of Resources: The development of this remittance platform is meticulously planned to leverage the scalability and efficiency of Cardano’s blockchain. By allocating 80,000 ADA to core development, including smart contract architecture and platform design, we ensure that our solution is both robust and future-proof. These costs are not just for building another generic platform but for creating a system specifically optimized for real-world, cross-border payments—built from the ground up to address latency, security, and transaction speed using the unique advantages of Cardano’s infrastructure.

• Focus on Reducing Costs for End Users: A significant portion of the budget—35,000 ADA—goes towards building partnerships and achieving regulatory compliance. Unlike other projects that simply build on-chain, our focus is on working with existing remittance networks, governments, and financial institutions to ensure users experience lower fees and faster processing times. This real-world integration reduces reliance on intermediaries, passing on the savings directly to the user and increasing Cardano's presence in financial services.

• Localized and Targeted Marketing Strategy: Instead of blanket marketing, the 25,000 ADA allocated for user engagement and promotion is highly targeted. By focusing on regions where remittance costs are highest, such as Latin America and Africa, we ensure that marketing efforts bring real value to users who will benefit most from lower transaction costs and increased financial access. This also positions Cardano as the blockchain of choice for underbanked populations, further enhancing its global reputation.

• Unique Focus on Seamless, Low-Cost Transactions: This project uniquely focuses on delivering an end-to-end remittance solution that leverages blockchain in a truly transformative way. By providing fast, low-cost, secure transactions, we’re not just creating another dApp but are actively reducing the burden of high fees and delays for families worldwide, something no other project in the ecosystem is tackling in this specific context. 

In conclusion, this project represents a high-return investment for the Cardano ecosystem, with a strong focus on real-world utility, user impact, and global financial inclusion, all while ensuring a lean and cost-efficient implementation strategy.