Credence

[Proposal setup] Proposal title

Please provide your proposal title

Credence

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

85000

[Proposal Summary] Time

Please specify how many months you expect your project to last

7

[Proposal Summary] Translation Information

Please indicate if your proposal has been auto-translated

No

Original Language

en

[Proposal Summary] Problem Statement

What is the problem you want to solve?

There is no simple way to verify identity once and reuse it everywhere. Banks, apps, and wallets all repeat the same KYC process.

[Proposal Summary] Supporting Documentation

Supporting links

• https://credenceee.vercel.app
,
• https://docs.google.com/document/d/1VQuSKMfBW1T4eBMtddcIvQ_6TPWqvpdaEx_8BpD6N20/edit?usp=sharing
,
• https://github.com/Alkamal01/Credence-cadano

[Proposal Summary] Project Dependencies

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

No

Describe any dependencies or write 'No dependencies'

No dependencies

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

No

License and Additional Information

Proprietary License with API/SDK access; integration components (smart contract interfaces, docs) under MIT License.

[Theme Selection] Theme

Please choose the most relevant theme and tag related to the outcomes of your proposal.

Identity & Verification

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).

Credence combines AI-driven identity verification with blockchain-based reusable KYC in a way that hasn’t been attempted in the Cardano ecosystem. While previous funded projects have explored decentralized identity and DID standards, none have introduced an AI-powered verification layer that continuously adapts to fraud patterns, nor a reusable KYC framework that allows users to port verified credentials seamlessly across multiple Cardano dApps. This integration of adaptive AI with reusable identity infrastructure is what makes our approach innovative and sets it apart from existing initiativ.

Describe what your prototype or MVP will demonstrate, and where it can be accessed.

The MVP will demonstrate the full flow of AI-powered KYC verification and reusable identity credentials integrated with Cardano smart contracts. A user will onboard by submitting documents for AI verification, receive a reusable on-chain credential, and then use it across different partner platforms without repeating the KYC process. The prototype will be accessible on a web-based demo platform with a testnet smart contract deployment. We also plan to release a developer sandbox (via API/SDK) where Cardano builders can test integrations with their own applications.

Describe realistic measures of success, ideally with on-chain metrics.

Success will be measured through clear on-chain, adoption, and security metrics. On-chain, we will track the number of unique reusable identity credentials issued, successful verifications processed by smart contracts, and the number of dApps integrating our KYC framework. Adoption will be evaluated through user retention, platform adoption, and pilot feedback. Security will be measured by reduced duplicate or fraudulent identity attempts. Within 6–12 months, our goal is to issue 1,000+ reusable credentials and secure at least 3 ecosystem integrations.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Proposed Solution: Credence – Verify Once, Trusted Everywhere

The Problem

Identity verification today is repetitive, expensive, and exclusionary. Every new bank account, fintech service, or blockchain platform asks for the same Know Your Customer (KYC) process: upload your ID, prove who you are, wait days or weeks for review. For organizations, this duplication creates high compliance costs and slows onboarding. For users, it’s frustrating, and for the 1 billion people worldwide without formal IDs, it is an insurmountable barrier.

In Africa alone, over 500 million people lack access to usable identification. This doesn’t just block them from financial services. It locks them out of education, healthcare, and opportunities that now rely on digital access. At the same time, businesses and platforms are struggling with fraud, identity theft, and ever-rising KYC compliance demands.

This is where Credence comes in.

Our Solution

Credence combines the intelligence of AI with the security of blockchain to create a reusable, portable identity that users can control and reuse across multiple platforms. Instead of verifying identity again and again, a user completes the process once with Credence. From then on, their verified identity can be trusted anywhere it’s accepted.

Credence has two main layers:

1. AI-Powered Identity Verification

• Uses machine learning to process documents, biometrics, and user data.

• Validates authenticity of IDs where they exist and detects fraud or manipulation.

• Supports alternative verification when no government ID is available, using facial recognition, voice patterns, digital footprints, and community attestations.

• Continuously improves accuracy and speed as more users join.

  1. Blockchain-Backed Identity Storage

• After verification, the identity is issued as a secure, reusable credential.

• Users control their data and share only what’s necessary (e.g., proving they are 18+ without revealing a full date of birth).

• Organizations verify instantly, without ever seeing raw sensitive documents.

• Every action is transparent, tamper-proof, and resistant to central data breaches.

How It Solves the Problem

**For users: **One verification unlocks access to multiple services. They don’t have to repeat the same process everywhere. They own their digital identity and can share it selectively.

**For organizations: **It cuts onboarding costs, reduces compliance headaches, and improves trust.

For the underserved: It creates an inclusive pathway, allowing those without formal IDs to prove who they are using alternative verification methods.

Imagine a student in rural Nigeria who has no national ID but is known by her teachers and local leaders. With Credence, her community can validate her identity, AI can cross-check it with her digital footprint, and blockchain secures the proof. That same reusable proof can then be used to open a bank account, apply for scholarships, or join online learning platforms.

Technical Design

Credence is designed with privacy and trust at its core:

• **AI modules: **OCR for document reading, face/voice matching for biometrics, anomaly detection for fraud.
• **Blockchain infrastructure: **Stores credentials as verifiable claims, not raw data. We use selective disclosure and zero-knowledge proofs to ensure privacy.
• User control: The identity lives in a digital wallet owned by the user. They decide when and where to share it.
• **Interoperability: **Designed to integrate with fintech apps, universities, healthcare systems, and blockchain platforms.

Security and Privacy

Unlike centralized KYC systems where sensitive documents sit on company servers (ripe for hacks), Credence ensures that no single party has access to all user data. Blockchain makes records tamper-proof, while zero-knowledge proofs allow users to prove attributes without exposing unnecessary information.

Use Cases

• **Finance: **Faster onboarding, reduced fraud, wider access to credit and banking.
• Education: Secure verification for students applying to schools or scholarships.
• **Healthcare: **Patients can reuse verified IDs across hospitals without repeating registration.
• **Blockchain/Web3: **Easier compliance for exchanges, DAOs, and dApps requiring verified identities.

Adoption Strategy

• Phase 1: Pilot with fintech partners to replace traditional KYC processes.
• **Phase 2: **Expand to education and healthcare institutions where ID gaps are most painful.
• **Phase 3: **Build a network effect. The more platforms accept Credence, the more valuable it becomes for both users and organizations.

Why It Works

Credence turns identity from a barrier into a bridge. Users get convenience, ownership, and dignity. Organizations get compliance, trust, and efficiency. Underserved populations finally get a digital identity that opens doors instead of closing them.

This is not about replacing governments or traditional IDs. It’s about complementing them, filling the gaps, and making identity portable in a world where access increasingly depends on digital verification.

Conclusion

Credence is simple: verify once, trusted everywhere. By combining AI’s ability to verify and blockchain’s ability to secure, we create a future where identity is not something you prove over and over, but something you own and carry with you. It solves a real, global problem in a way that is practical, inclusive, and scalable.

[Your Project and Solution] Impact

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

Our project will make identity management easier and safer for people and organizations using Cardano. By creating reusable, community-verified digital IDs, developers can integrate trust into their apps without building identity systems from scratch. This reduces costs, encourages more projects to launch, and helps onboard users who struggle with repeated KYC checks. In the long run, it makes Cardano more attractive to businesses and communities that need secure, user-friendly identity solutions.

[Your Project and Solution] Capabilities & 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 combines experience in AI, blockchain, and secure identity systems, which gives us the technical ability to deliver Credence responsibly. We will build on proven frameworks for digital identity, while adding community validation and reusable KYC as our innovation. To ensure accountability, we will keep our process transparent, publish progress updates, and open parts of the system for audit by the community.

We plan to validate feasibility in three ways:

• Technical testing: pilot the system on testnets to confirm that identity reuse works across multiple platforms.
• **User validation: **run trials with a small group of users to confirm the verification flow is simple and trusted.\
• Partner feedback: work with early partners (banks, fintechs, or dApps) to test integration and gather input on compliance needs.

This staged approach ensures we are not just building an idea, but delivering a practical, trusted solution.

[Milestones] Project Milestones

Milestone Title

Foundation & MVP Development

Milestone Outputs

Development of the AI-powered identity verification engine, reusable KYC framework, and smart contract layer on Cardano testnet. This includes a working front-end prototype that allows users to create and verify identities, as well as developer-facing APIs/SDKs for integration. The output demonstrates technical feasibility and positions the solution for pilot testing.

Acceptance Criteria

The MVP must allow at least 100 test users to create reusable digital identities, complete KYC verification, and store credentials securely on Cardano testnet. Smart contracts must process at least 500 verification transactions without failure. The APIs and SDKs should enable developers to test integrations seamlessly, ensuring that the foundation is usable beyond an internal demo.

Evidence of Completion

Deployment of smart contracts on Cardano testnet, live demo of the MVP with real test users, API/SDK documentation published for developers, and internal test reports verifying performance and stability. Screenshots, transaction hashes, and user test feedback will be compiled as supporting evidence.

Delivery Month

3

Cost

35000

Progress

40 %

Milestone Title

Pilot Testing & Community Validation

Milestone Outputs

Execution of a pilot with selected Cardano community projects to validate the MVP. This includes onboarding at least 200 real users, collecting structured feedback, and stress-testing the reusable KYC framework under real-world conditions. Community engagement activities will also validate adoption potential and identify improvements.

Acceptance Criteria

The pilot must involve at least 3 Cardano ecosystem projects integrating the framework. A minimum of 200 unique user credentials must be issued during testing. Feedback must confirm usability, while technical tests should confirm fraud detection and duplicate-prevention mechanisms. The pilot must also deliver insights into user retention and scalability.

Evidence of Completion

Pilot reports with detailed adoption metrics, survey results from users and partner projects, testnet/mainnet transaction hashes showing issued credentials and verifications, and published community feedback from forums, social media, or community calls.

Delivery Month

2

Cost

20000

Progress

30 %

Milestone Title

Ecosystem Integration & Feature Expansion

Milestone Outputs

Integration of the reusable KYC and verification framework with Cardano ecosystem partners at scale. This phase expands functionality with community vouching, tiered verification, and enhanced fraud-prevention features. It ensures long-term adoption by providing open integration paths (APIs, SDKs, and contract interfaces) and establishing a roadmap for sustainability.

Acceptance Criteria

At least 1,000 reusable identity credentials issued on Cardano testnet/mainnet. Minimum 5 ecosystem partners actively integrating the framework. Smart contracts must pass an independent audit, confirming compliance and security. Feedback from partners should validate the framework’s readiness for ecosystem-wide use.

Evidence of Completion

Audit reports confirming smart contract and AI identity layer security, mainnet deployment with verifiable transaction records, signed partnership or integration confirmations, and updated developer documentation reflecting expanded features.

Delivery Month

2

Cost

30000

Progress

30 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Our budget is structured to cover the essential resources needed to deliver the project over a six-month timeline. Each category is directly tied to the milestones and the expertise required for delivery:

1. Personnel Costs (60%)

• AI/ML Engineer (Project Lead): Model development, system integration, oversight.
• Blockchain Developer: Smart contract design, deployment, and testing.
• Frontend Developer: User interface and platform integration.
• Community Engagement Lead: Pilot testing, feedback collection, community validation.
• Business Developer: Partnerships, adoption strategy, and sustainability.

Personnel costs reflect the time commitment required from each specialist to build, test, and launch the platform.

1. Technical Infrastructure (20%)

• Cloud computing for AI training and hosting.
• Development environments, testing frameworks, and security monitoring.
• Smart contract deployment and mainnet integration costs.

This ensures reliable development, testing, and deployment at scale.

3. Audit and Security Review (10%)

• Independent audit of smart contracts and identity flow.
• Penetration testing and security validation.

This guarantees that the system is not only functional but also secure and trustworthy.

4. Community Testing and Outreach (5%)

• Organizing pilot programs with real users.
• Incentives for testers to validate the platform.
• Educational materials for onboarding the community.

5. Contingency and Operational Costs (5%)

• Covering unexpected technical, legal, or compliance requirements.
• Ensuring uninterrupted progress even if adjustments are needed.

Total Requested Budget: ₳85000.

This breakdown aligns resources directly with outcomes. Personnel and technical infrastructure form the core of delivery, while audits and community testing ensure feasibility, trust, and adoption.

[Final Pitch] Value for Money

How does the cost of the project represent value for the Cardano ecosystem?

The proposed budget directly translates into tangible value for the Cardano ecosystem by funding a reusable, AI-enhanced digital identity layer that strengthens trust and usability across dApps. Rather than being a one-off solution, the resources invested will create open, auditable smart contracts, reusable KYC modules, and a community-driven verification framework. These components are reusable building blocks that other Cardano projects can adopt, extending the value of the investment well beyond this initiative.

The majority of the cost is allocated to specialized expertise — AI/ML, blockchain development, frontend engineering, and community engagement — which are essential to building a secure and user-centric identity solution. These are not arbitrary “salaries” but targeted commitments tied to specific milestones: developing the smart contracts, deploying the AI-powered verification layer, running testnet pilots, and completing independent audits.

By delivering this with a six-month timeline, the project avoids wasteful overhead and ensures rapid time-to-value. For the Cardano community, the return is twofold:

• Immediate — dApps and platforms will be able to integrate a reusable identity framework that lowers onboarding friction and compliance costs.

• **Long-term **— The ecosystem gains an open, AI-augmented infrastructure for digital trust that reduces redundant KYC, fosters interoperability, and positions Cardano as a leader in decentralized identity innovation.

In this way, the cost represents not just project delivery, but a multiplier effect for the broader ecosystem, enabling future builders to create more compliant, trusted, and user-friendly experiences on Cardano.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes