Stealth Wallet Application

[GENERAL] Name and surname of main applicant

Quinn Parkinson

[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)

6

[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 stealth wallet using privacy-preserving techniques. This wallet will allow users to send and receive funds without exposing their addresses or transaction details.

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

Yes

[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.”

The project relies on solving Cardano's collateral problem. Essentially, due to the functionality of the blockchain, it becomes trivial to track any privacy-preserving technology by just tracking which collateral is being used inside a transaction. A proposal is open to solve this.

[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

The project will be fully open source under the GPL3 License, ensuring that all elements of the stealth wallet, including the smart contract, transaction scripts, and privacy features, are accessible and modifiable by the community. The code repository will be maintained on GitHub throughout the project's lifecycle, allowing contributions, audits, and improvements from developers. This openness aligns with the Cardano ecosystem’s commitment to transparency and decentralization.

[METADATA] Horizons

Wallet

[SOLUTION] Please describe your proposed solution

The problem we are solving is the need for more privacy in Cardano transactions. Current systems expose user addresses and transaction histories, which can lead to tracking and loss of financial privacy. Our innovative solution is to develop Seedelf, a stealth wallet for Cardano that allows users to send and receive funds while protecting their identity and transaction details.

With the user in mind, we leverage the BLS12-381 curve and Schnorr signatures to create stealth addresses, ensuring privacy by hiding the ownership of funds. The token-agnostic wallet allows users to use NFTs as locator tokens for added personalization.

Our approach is not just about privacy; it's about a unique way of preserving it without sacrificing transaction functionality. We use cryptographic proofs to verify spendability, a method that stands out for its ability to allow a privacy-preserving method on a public blockchain without complex or resource-intensive mixing protocols.

We will engage Cardano users who value privacy, particularly those concerned about transaction tracking or de-anonymization. Our project will demonstrate impact through happy path testing scripts, showing how funds can be securely sent, re-randomized, and removed from the stealth wallet, preserving privacy in each step.

The proposed solution is not just beneficial; it's essential to Cardano. It enhances user privacy, a growing concern as blockchain adoption increases. By providing a stealth wallet, we enable private transactions that can protect users while aligning with the decentralized nature of the Cardano ecosystem, ensuring its continued success and relevance.

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

Seedelf's positive impact on the Cardano community is unique and significant. It enhances user privacy and promotes the adoption of privacy-preserving tools on the blockchain. The stealth addresses, a key feature of Seedelf, safeguard users' identities and transaction histories, empowering Cardano users with greater control over their financial privacy. This unique offering will foster trust in the network and attract users who prioritize confidential transactions.

We will measure our impact through both quantitative and qualitative means:

1. Quantitative:

• The number of Seedelf wallet users.
• The number of transactions processed using the stealth wallet.
• GitHub repository activity, such as the number of forks, issues, and community contributions.
• Participation in our privacy-focused workshops and user feedback.

1. Qualitative:

• User feedback on privacy improvements.
• Case studies show how users have benefited from the stealth wallet for their privacy needs.
• Community engagement through social media and Discord.

We will share our outputs and opportunities through:

• Open-source code on GitHub
• Documentation and tutorials to help developers and users integrate and use Seedelf.
• Regular updates and progress reports through Cardano community channels (e.g., Catalyst, Twitter, Discord).

This project will bring value to the Cardano community by enabling private, secure transactions and inspiring further privacy innovations.

[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?

With my extensive experience in smart contracts and cryptographic protocols, I am well-suited to deliver this project with high trust and accountability. I have a track record of successfully building secure smart contracts on Cardano.

To validate feasibility, we will start with small, iterative steps, including:

1. Prototype Development: Building and testing the core privacy mechanisms (stealth addresses, re-randomized UTxOs) in a controlled environment.
2. Happy Path Testing: Running well-documented scenarios (e.g., sending/receiving funds) to ensure the functionality works as expected.
3. Security Audits: To ensure robustness, conduct internal code audits and, if possible, seek third-party reviews for smart contracts.
4. Community Testing: Engaging the community early with an open-source version to gather feedback, contributions, and suggestions for improvement.

To manage funds properly, I will:

• Staying true to our commitment to transparency, I will provide regular, transparent updates on milestones and project expenditures, keeping all stakeholders well informed. I will also allocate funds specifically for critical stages like development, testing, and deployment.

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

Description: Complete the core development of the Seedelf stealth wallet. This includes building the core functionality, such as stealth addresses, re-randomized UTxOs, and spendability checks using Schnorr proofs.

Acceptance Criteria:

• A fully functional prototype of the smart contract is on the Cardano testnet.
• Basic tests validate the privacy-preserving features (stealth addresses, re-randomization).
• GitHub repository with open-source code under the GPL3 License.
• Initial documentation and tutorial for users and developers.

Budget Allocation: 26.67% of the total budget.

Description: Conduct happy path testing with key user flows such as creating a Seedelf, sending funds, and re-randomizing UTxOs. Gather feedback from the Cardano community to refine the wallet.

Acceptance Criteria:

• Successful execution of all happy path tests (e.g., creating/deleting Seedelfs, sending/receiving tokens).
• Community testing and feedback round completed.
• Improvements and bug fixes based on community input.
• Updated documentation with test results and feedback analysis.

Budget Allocation: 26.67% of the total budget.

Description: Conduct a thorough security audit of the smart contracts and deploy the final version to the Cardano mainnet.

Acceptance Criteria:

• Completed internal audit and, if feasible, third-party security audit.
• All audit issues were addressed and resolved.
• Mainnet deployment of the Seedelf wallet with updated smart contracts.
• Finalized documentation for mainnet users and developers.

Budget Allocation: 26.67% of the total budget.

Description: Provide a comprehensive report on the project outcomes and impact and a video walkthrough showcasing the final product and its key features.

Acceptance Criteria:

• Final project report detailing outcomes, impact, and challenges.
• Video demonstration of the Seedelf stealth wallet on the mainnet.
• Community release of the final version and promotion across relevant channels.

Budget Allocation: 20% of the total budget.

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

Quinn Parkinson - Smart Contract Developer

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

Milestone 1: Prototype Development (Month 1-2)

• Development of Core Functionality (stealth addresses, re-randomized UTxOs, Schnorr proofs): 10,000 ADA
• Smart Contract Testing on Testnet: 5,000 ADA
• Initial Documentation & Tutorials: 3,000 ADA
• GitHub Repository Setup & Maintenance: 2,000 ADA
• Budget Allocation: 20,000 ADA (26.67% of total budget)

Milestone 2: Happy Path Testing and Community Feedback (Month 3-4)

• User Testing & Feedback Collection: 5,000 ADA
• Community Engagement (workshops, feedback sessions): 4,000 ADA
• Bug Fixes & Feature Refinement: 10,000 ADA
• Updated Documentation Based on Feedback: 1,000 ADA
• Budget Allocation: 20,000 ADA (26.67% of total budget)

Milestone 3: Security Audit and Mainnet Deployment (Month 5-6)

• Internal & Third-Party Code Security Audit: 15,000 ADA
• Mainnet Deployment: 5,000 ADA
• Final Documentation for Mainnet Users & Developers: 2,000 ADA
• Audit Report and Fixes: 3,000 ADA
• Budget Allocation: 20,000 ADA (26.67% of total budget)

Final Milestone: Project Close-out Report and Video

• Final Project Report: 5,000 ADA
• Video Walkthrough: 5,000 ADA
• Marketing & Promotion of Final Product: 5,000 ADA
• Budget Allocation: 15,000 ADA (20% of total budget)

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

The Seedelf stealth wallet project offers a unique and substantial value for the Cardano ecosystem. It fills a critical gap in privacy while maintaining a clear, cost-effective approach to development and deployment. Here's why this is so compelling:

1. Specialized Expertise: The cost reflects my extensive experience in smart contracts and cryptography, which is essential for ensuring the successful development of a privacy-focused wallet. This expertise eliminates the need for additional outsourcing, making the project more cost-efficient than hiring external specialists.
2. Community-Centric Open-Source Solution: The entire project is open-source, allowing the community to use, audit, and improve the codebase freely. This approach is not just about cost-effectiveness; it's about creating a project that adds long-term value and actively involves the ecosystem in its ongoing enhancements. Fair Market Rates: The costs are not arbitrary but based on competitive market rates for blockchain developers and cryptographic experts. Security and Audit Focus: Security auditing is a substantial portion of the budget. The audit is essential for ensuring the robustness of the smart contracts and protecting users from potential vulnerabilities. The cost is justified as it will provide trust and reliability in the wallet, which is crucial for Cardano's reputation.
3. Public Engagement and Testing: Allocating funds for community feedback, user testing, and engagement ensures that the wallet addresses real user needs. This collaborative approach guarantees that the final product will be user-friendly and functional, bringing direct value to the community.
4. Long-Term Impact: Creating a privacy-preserving wallet on Cardano has long-term implications for adoption. As privacy becomes an increasingly important issue in blockchain, Seedelf will position Cardano as a leader in privacy solutions, attracting privacy-conscious users to the network.

By carefully managing resources and leveraging open-source development, the costs are proportional to the project's complexity and impact. The funds will result in a fully functional, secure, and scalable solution benefiting the Cardano community.