Last updated 6 months ago
Cardano smart contracts lack AI-validated data feeds, blocking use cases like real-time DeFi pricing, automated supply-chain payments, and AI-driven lending risk scoring, slowing Cardano adoption.
An AI-powered oracle that fetches, verifies, and analyzes external data, delivering trusted insights and predictions directly to Cardano smart contracts for advanced dApp functionality.
This is the total amount allocated to AI-Powered Oracle for Cardano Smart Contracts.
Please provide your proposal title
AI-Powered Oracle for Cardano Smart Contracts
Enter the amount of funding you are requesting in ADA
99400
Please specify how many months you expect your project to last
8
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
Cardano smart contracts lack AI-validated data feeds, blocking use cases like real-time DeFi pricing, automated supply-chain payments, and AI-driven lending risk scoring, slowing Cardano adoption.
Supporting links
Does your project have any dependencies on other organizations, technical or otherwise?
No
Describe any dependencies or write 'No dependencies'
No dependencies
Will your project's outputs be fully open source?
Yes
License and Additional Information
Our project outputs will be open source throughout the entire lifecycle of the project. We are committed to fostering collaboration, transparency, and innovation within the Cardano community by making our codebase accessible to all interested parties.
Please choose the most relevant theme and tag related to the outcomes of your proposal.
Oracles
Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).
Most existing Cardano oracles deliver raw, static data feeds without context or intelligence. Our proposal is innovative because it introduces AI-enhanced, predictive oracles that not only fetch data but also verify, analyze, and forecast trends before publishing them on-chain. This creates a reusable, open-source AI data layer for Cardano, enabling proactive, intelligent smart contracts in DeFi, governance(e.g.,Catalyst proposal summarization) , and gaming that were previously impossible with traditional oracles.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
Our MVP will demonstrate an end-to-end AI-powered oracle on the Cardano testnet: raw data is ingested, processed by AI models, signed, and published on-chain as reference inputs. A demo dApp and explorer dashboard will show how smart contracts consume these predictive feeds for use cases like DeFi risk scoring or Catalyst proposal summarization. The prototype and code will be open-sourced on GitHub and accessible through a public demo dashboard.
Describe realistic measures of success, ideally with on-chain metrics.
Success will be measured by having a working end-to-end demo on Cardano testnet that publishes signed AI predictions and is consumed by smart contracts. On-chain metrics include the number of oracle transactions created and successfully read by contracts. Off-chain success is shown through a public dashboard where outputs can be visualized and verified by developers.
Please describe your proposed solution and how it addresses the problem
Introduction
A blockchain oracle is a system that connects smart contracts with real-world data such as prices, weather, or social sentiment, enabling decentralized applications (dApps) to react to off-chain events. Traditional oracles, however, often merely relay raw data without verification, leaving smart contracts vulnerable to incomplete, unprocessed, manipulation, outages, or inaccurate feeds.
Integrating artificial intelligence (AI) into oracle systems allows data to be validated, enriched, and even predicted before it ever reaches the blockchain. This proposal outlines the creation of an AI-powered oracle feed on Cardano, delivering trusted, context-aware, and predictive data feeds to power a new generation of intelligent and adaptive smart contracts.
Background
Problem Statement
Cardano smart contracts currently cannot access high-quality, verified, or predictive external data feeds. Existing approaches suffer from:
Without an AI-enhanced oracle, Cardano dApps remain reactive, narrowly scoped, and vulnerable hindering advanced use cases in DeFi, insurance, governance, and beyond.
Proposed Solution
We will build an AI-powered oracle that delivers advanced, predictive insights directly to the Cardano blockchain. By combining off-chain artificial-intelligence models with secure on-chain publishing, our platform transforms raw public data into forward-looking, trust-verifiable forecasts such as short-term price moves, volatility indices, and risk scores. These signed predictions are published as easy-to-consume oracle feeds (a single extra UTXO input), empowering any smart contract to act proactively rather than reactively. This enables more responsive, automated, and intelligent on-chain decision-making across diverse use cases from financial risk assessment to dynamic resource management, unlocking new possibilities for the Cardano ecosystem.
We will develop an AI-Powered Oracle Feed on Cardano, comprising three integrated layers:
Key Advantages:
By combining AI with decentralized oracle mechanisms, our solution delivers not only raw data but also context-aware, predictive insights that unlock new classes of decentralized applications, improve automation, and increase the reliability of on-chain decision-making.
Use Cases:
Tools and Methodologies:
We’ll deliver this by combining trusted Cardano development tools with powerful AI and data engineering frameworks.
Why This Matters
Traditional oracles are limited to static “if X, then Y” logic. AI-enabled oracles unlock intelligent, reactive contracts capable of responding to complex, real-world conditions. Imagine:
“If AI detects bearish sentiment and 15% drop in volume, then reduce LP rewards automatically.”
By combining AI with blockchain oracles, we deliver more powerful, autonomous, and adaptive smart contracts, enabling Cardano developers to build applications previously impossible on-chain.
Please define the positive impact your project will have on the wider Cardano community
Our AI-powered oracle network will significantly enhance the capabilities, security, and attractiveness of the Cardano ecosystem:
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?
Team Experience and Expertise:
Our team brings deep, practical experience in AI, blockchain development, software engineering, and secure smart contract deployment on Cardano. We’ve contributed to Catalyst-funded projects, developed Plutus smart contracts, and worked on real-time AI processing pipelines. This technical foundation makes us uniquely qualified to deliver the AI-powered oracle infrastructure with high reliability and security.
Yenatfanta Shifferaw
Eyasu Birhanu
A certified Cardano smart-contract developer who has already delivered audited education and tooling initiatives. He previously built smart-contract components for the Cogito project, gaining real-world experience fusing AI logic with on-chain code.
Together, Eyasu and Yenatfanta represent a rare blend: protocol-level blockchain R&D, applied AI experience, and practical engineering within Cardano’s core tooling stack.
Track Record:
We have a proven track record of success in the Cardano ecosystem:
These educational efforts have nurtured new developer talent and strengthened Cardano adoption locally.
Dedicated Development Excellence:
Each team member contributes specialized skills, including AI modeling, Plutus smart contract development, DevOps, UI/UX design, and blockchain infrastructure.
Our developers have built frontend interfaces and backend systems that interact seamlessly with Cardano’s extended UTXO model, ensuring reliable and scalable architectures.
We have hands-on experience integrating with decentralized applications (dApps), oracle systems, and real-time data feeds directly supporting the core functionality of this AI-powered oracle project.
This cross-functional expertise allows us to rapidly prototype, iterate, and deliver high-performance smart contract infrastructure backed by verifiable AI intelligence.
Community Involvement and Expertise:
We’ve been active contributors to the Cardano and Web3 ecosystem in Ethiopia. Through the Ethiopian Blockchain Network, we’ve:
This community focus guarantees that our solution will be well-aligned with the needs of local and global users alike.
Certified Expertise:
Members of our team hold verified certifications in blockchain development, AI/ML, and software architecture. These are not only credentials but evidence of continued learning and mastery, crucial for developing a reliable AI-integrated oracle solution.
Validating Feasibility of the Approach
Milestone-Based Development:
We will follow a clear, milestone-based plan.
Iterative Testing & Community Validation:
We will test continuously:
Quantifiable Metrics & Evaluation:
We will define clear performance metrics, such as:
These benchmarks will guide improvements and ensure we remain accountable throughout development.
Technical Validation & Security:
Transparent Budgeting:
All development, integration, and infrastructure costs will be clearly broken down and tracked against milestones. This ensures that funds are allocated with accountability and community trust.
In Summary, by combining our technical depth, active community engagement, and structured development plan, we are fully capable of delivering this AI-powered oracle system to the highest standard. We are committed to openness, technical excellence, and meaningful impact empowering Cardano developers with smarter, forward-looking data tools.
Milestone Title
Research, Planning, Architecture & Explorer UI
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
1
Cost
15550
Progress
20 %
Milestone Title
AI Model Development, Data Pipeline Setup & UI Integration
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
3
Cost
24150
Progress
50 %
Milestone Title
AI Prediction Engine, Output Signing & Verification
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
5
Cost
24400
Progress
70 %
Milestone Title
Oracle Publishing & Smart Contract Integration
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
7
Cost
21700
Progress
90 %
Milestone Title
End-to-End Testnet Demo & Project Closeout
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
8
Cost
15000
Progress
100 %
Please provide a cost breakdown of the proposed work and resources
Milestone 1: Research, Planning, Architecture, and Explorer UI (6 Weeks)
Project Management & Architecture:
Infrastructure & Tools:
Design:
Miscellaneous:
Grand Total (Milestone 1): 15,550 ADA
Milestone 2: AI Model Selection, Data Pipeline Setup and Frontend (8 Weeks)
AI & Data Engineering:
Web Development:
Infrastructure:
Miscellaneous:
Grand Total (Milestone 2): 23,950 ADA
Milestone 3: AI Prediction Engine Prototype and Output Signing/Verification (7 Weeks)
AI Development and Testing:
Smart Contract:
Infrastructure:
Grand Total (Milestone 3): 23,400 ADA
Milestone 4: Oracle Publishing Mechanism and Smart Contract Reader (6 Weeks)
Blockchain Development:
Integration:
Infrastructure:
Miscellaneous:
Grand Total (Milestone 4): 21,500 ADA
Milestone 5: End-to-End Testnet Demo and Reporting (4 Weeks)
Testing and Optimization:
Miscellaneous:
Grand Total (Milestone 5): 15,000 ADA
TOTAL REQUESTED BUDGET: 99,400 ADA
How does the cost of the project represent value for the Cardano ecosystem?
Here's how the cost represents strong value:
1. Skilled and Proven Team
The budget funds a cross-functional team with experience at IOHK, SingularityNET, Cogito, and other Catalyst-funded projects. Each member contributes core expertise in AI, Cardano smart contracts, DevOps, and web3 tooling, ensuring high-quality delivery.
2. Reusable Open-Source Infrastructure
We’re building a general-purpose AI-powered oracle framework, not a one-off tool. The data ingestion pipeline, model integration, signed publishing mechanism, and Plutus interface will be open-sourced and reusable for DeFi, governance, gaming, and more.
3. Explorer UI for Transparency
The inclusion of a simple frontend dashboard allows users, voters, and devs to easily visualize oracle outputs, understand predictions, and trust what smart contracts are referencing, bringing transparency and trust to AI on-chain.
4. Security and Auditability
Signed data outputs, timestamped and published via UTXO reference inputs, ensure tamper-proof verification on-chain. This elevates trustworthiness and aligns with Cardano’s emphasis on secure, transparent data infrastructure.
5. Lean and Modular Architecture
The off-chain AI processing + on-chain publishing structure allows low-cost, scalable deployments while keeping load off the blockchain. This architecture supports future expansion (new models, new feeds) with minimal extra cost.
6. Pilot Testing and Feedback Loop
A portion of the budget is reserved for pilot testing with real dApps (e.g., DeFi protocols or Catalyst dashboards), ensuring the system meets actual developer needs. This feedback loop ensures a fit-for-purpose product.
7. Contingency and Reporting
We include a small contingency buffer and allocate time for a final demo + report, ensuring full transparency and resilience to minor deviations.
This project delivers more than an oracle, it establishes Cardano’s first open, AI-powered data layer, enabling smarter, more secure dApps across DeFi, governance, and gaming, with reusable infrastructure that continues to create value long after launch.
Terms and Conditions:
Yes
Yenatfanta Shifferaw – AI and Blockchain Research Lead | Data Engineer | Data Analyst
Linkedin: https://www.linkedin.com/in/yenatfanta-shifferaw-64b0614b/
Paper: https://ejol.aau.edu.et/index.php/ZEDE/article/view/6555?utm_source=chatgpt.com
Eyasu Birhanu – Blockchain and Smart Contract Lead
Linkedin: https://www.linkedin.com/in/eyasu-birhanu-4665701a3/
Github: https://github.com/eyasubirhanu
3: Dawit Melka – Full-Stack Developer, Data Scientist and Data Engineer
Linkedin: https://www.linkedin.com/in/dawit-melka/
4: Tollan S. Berhanu - Cardano Blockchain | Security/Crypto Specialist:
Linkedin: https://www.linkedin.com/in/tollan-s-berhanu/
Ensures signature generation and verification logic is provably secure.
Handles edge cases and adversarial attack testing.
Linkedin: Linkedin Profile
Github : GIthub Profile
5: Nahom Senay - Backend Developer | DevOps:
Linkedin: https://www.linkedin.com/in/nahom-senay-54ab68255/
Certified Cardano Blockchain developer
Ensures reliable data ingestion pipelines, server uptime, and testing environments.
Coordinates with dApp teams for pilot testing, integration feedback, and outreach.
Linkedin: linkedin profile
Github: github account