InnovatioFounder KYC & AML Process

[GENERAL] Summarize your solution to the problem.

Implement PRISM-based KYC & AML for Innovatio's Crowdfunding platform based on European Union requirements, with custom workflows and easy SSI implementation via ProofSpace.

[GENERAL] Summarize your relevant experience.

Innovatio is a Crowdfunding Launchpad that is soon to launch its MVP and ProofSpace is a multi-network Sovereign Identity (SSI) platform, wrapped with no-code tools to build SSI workflows and ecosystems. (check external links).

[IMPACT] Please describe your proposed solution.

Innovatio is an Estonian fintech that develops financial services with the implementation of blockchain technology for disintermediated solutions, as well as a great space for networking, where entrepreneurs, developers and early-adopters share and generate daily business value.

This proposal was born from a meeting in the Aftertownhall breakout room on Wednesdays, where Innovatio and ProofSpace quickly aligned their goals.

Innovatio and Proofspace met at a Wednesday aftertownhall breakout room, where they quickly saw an opportunity to demonstrate the implementation of SSI to scale a Cardano native De-Fi platform in compliance with EU KYC & AML regulatory frameworks.

Innovatio is a Crowdfunding platform that has been funded on Fund 7, link: https://bit.ly/3OMgetw (Important to read to understand the Platform)

You can take a look to the design here: https://bit.ly/3OQSRz4

This platform will be launched in September with the following possibilities.

• The Innovatio Founder will allow raising funds for the launch of airdrops (ICOs).
• The Innovatio Founder will allow raising funds for the launch of NFTs (Collectibles and/or utility).

The aim of this proposal and collaboration is to include a facial scanning and ID workflow that complies with European KYC & AML guidelines and consumer data protection. The result of this solution is an SSI and PRISM-based KYC & AML solution developed by ProofSpace on a highly scalable platform from the crowdfunding and De-Fi marketplace.

ProofSpace will be responsible for the following:

1. Agree the SSI workflow design in collaboration with Innovatio. The goal is to enable Innovatio users to sign up with document and selfie verification (using ProofSpace’s integration of Onfido) and sign-in using SSI OAuth.
2. Confirm number of planned KYC checks and corresponding payment plan.
3. Provision Innovatio with their ProofSpace-Onfido account.

1. Support Innovatio to implement and integrate the SSI workflow via ProofSpace Dashboard:
2. Configure Innovatio KYC on-boarding workflow, including external linkfrom Innovatio platform to ProofSpace App, document and selfie verification flow and issuance of Innovatio KYC Credential to user.
3. Configure Innovatio sign-in workflow using SSI OAuth verification of KYC credential.
4. Integrate ProofSpace Dashboard with Innovatio portal and CRM using webhooks.

The main effects of the implementation of this proposal are the following:

1. The Innovatio Founder will be able to comply with the European KYC & AML guidelines to extend the use of its services to start-ups and on-chain projects.

2. To have the ProofSpace technology with interoperable credentials within other blockchain ecosystems.

3. Use an SSI stack for the implementation of decentralized identities.

4. Achieve an excellent use case for decentralized identities from the ATALA Prism program is a scalable De-Fi platform within the European Union.

[IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.

The proposal presented is aligned with the guidelines of the challenge, as it seeks to implement a KYC & AML SSI PRISM-based solution in compliance with European regulations, extending the reach of a native Cardano De-Fi platform to start-ups and on-chain projects in the European market, resulting in an application with greater adoption and growth.

[IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?

Risk: KYC, and the corresponding non-anonymity, becomes a deterrent to participating in the platform for investors.

Mitigation: ProofSpace has developed an “auto-delete” function after interactions are completed so that the record of the fact of a KYC will be retained, but the associated personal data can be removed. The storage of data is a matter of jurisdictional compliance, so we will follow the rules in our jurisdiction.

[FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.

October

1. Finalize and agree workflow, including Onfido KYC requirements.

Deliverable: Published draft workflow

November

1. Configure draft workflow in PS Dashboard
2. Create Innovatio KYC Schema
3. Create Innovatio KYC credential definition
4. Configure required Onfido checks
5. Create interaction sequence for required/issued credentials

Deliverable: screenshots of different parts of workflow

December

1. Deep linking integration between Innovatio and PS App
2. Webhooks integration between Innovatio and PS Dashboard
3. Configure SSI OAuth with KYC credential

Deliverable: Video of functioning workflow implementation

January

1. Test and Fix
2. Push to production

Deliverable: Product on the market

Managing the workload of this and other proposals:

Innovatio: https://bit.ly/3R12EV5

ProofSpace:

Here is a link explaining workload management.

https://docs.google.com/document/d/1xkE9MMoJGXWKLl9Lkdh7c-R3hH1nn7XdMsZzRSE9LCY/edit?usp=sharing 

[FEASIBILITY] Please provide a detailed budget breakdown.

• 10k Onfido Checks at approx. $2.50 each: $25,000
• SSI Workflow Design: $1,300
• SSI Workflow Implementation: $4,400
• 12mo subscription to ProofSpace “Validate” Package: $2,277
• 15hrs dedicated support: $2,100
• KYC & AML Licenses: $20.000
• Legal Documentation by Law Firm: $5.000

Total request: $60.000

[FEASIBILITY] Please provide details of the people who will work on the project.

Innovatio is a fintech company that develops financial services, currently its crowdfunding platform and forms a community space dedicated to networking between entrepreneurs, developers and early-adopters.

You can check it online here.

Team: https://bit.ly/3y4navk

Social Networks: https://bit.ly/3npRbAE

ProofSpace is a multi-network identity platform, wrapped with no-code tools for building and scaling decentralized ID workflows and ecosystems.

You can check it online here.

Team: https://bit.ly/3xZ5GjO

Social Networks: https://www.linkedin.com/company/joinproofspace/, https://twitter.com/proof_space,

[FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.

This proposal is intended for a timely and objective development to expand the scope and use cases of Innovatio's crowdfunding platform. This means that there is no right answer as such, there may or may not be future development implementations in Catalyst.

[FEASIBILITY] Are you or any member of your team working on any other proposals in this Fund9?

[FEASIBILITY] Are you or your team working on any other proposals from previous Funds?

[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?

Every deliverable of the project described in our detailed plan will be visible to the community through our monthly reports. Key Performance Indicators (KPIs) include:

Innovatio’s KPIs:

1. Number of users who use the workflow to submit their ID and face scan to complete the KYC & AML.
2. Number of users who correctly completed the KYC & AML process.

ProofSpace KPIs:

1. Functioning workflows for Innovatio and their users, including KYC checks and integration with existing and third-party systems.

[AUDITABILITY] What does success for this project look like?

The implementation of the proposed Workflow should result in a simple, practical and efficient KYC/AML process according to European regulations, where users can scan and link their physical IDs and pass facial recognition.

This will allow to have a unique registration and access token, linked to an identity with KYC & AML and in accordance with consumer data protection regulations, enabling the use of the platform within the European market and for start-ups and on-chain projects.

The success of this implementation will also prove an excellent use case for future similar KYC/AML implementations with SSI in other projects when ATALA PRISM goes into production.

[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.

This proposal is a follow-up to the outcome of other previously funded proposals. Funded proposals can be reached at our profiles.

This proposal is an integration for the platform funded at F7: Innovatio Crowdfunding Launchpad.

This proposal will use ProofSpace’s implementation of the PRISM SDK, which was integrated as part of an F7 proposal (https://cardano.ideascale.com/c/idea/385204).

Sustainable Development Goals (SDG) Rating

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