There is no automation, transparent, and honest Auction service to actively find the exact bid winner for an auction and care until the job is done. No one accepts bid deposits in cryptocurrency.
Build and integrate a Cardano-based smart contract into our current centralized auction platform. It accepts bid deposits in cryptocurrency via a partnership with the no.1 auction house in Vietnam.
This is the total amount allocated to dMAH - dMetaverse Auction House.
1) Introduction
Digital transformation is a must-have battle for auction houses, it helps them keep up with emerging customer demands and therefore survive in the face of the future.
One of the main goals of digital transformation is to transform products/services to create value and benefits for the community, reducing costs & time for society and risks for investors by integrating technologies like blockchain and metaverse into the current centralized systems. This is also the direction of the Cardano Foundation, Lac Viet Online Auction - the no.1 Vietnam Auction House and our technical team - the owner of the first patented and government-authorized SaaS auction platform in Vietnam.
In recent years, blockchain has gained widespread attention as an emerging technology for decentralization, transparency, and immutability in advancing online activities over public networks. A recent scientific study has shown that when the blockchain meets the auction industry has some challenges that need to be solved as 1) Cryptocurrency payment 2) Auction fraud
2) Auction industry market status and Problems
According to recent reports and academic research shows that:
These problems show the huge need for a next-generation of auction platform in real life. This is why the Decentralized Metaverse Auction House( dMAH) is proposed.
3) Proposed Solution
To solve the above problems, we proposed to integrate Cardano blockchain into our current centralized online auction platform. It is a functioning connection platform called Decentralized Metaverse Auction House( dMAH) that sits in between licensed auction houses and auction participants ( Users, Bidders, Sellers) for auctioning rare, extraordinary tangible items and assets belonging to the government.
dMAH is a place to attract more users to Cardano by focusing on converting non-crypto users to crypto users. Non-crypto users will be given incentives in both ADA and B2E tokens. We encourage them to use/hold tokens to earn more incentives on the next bidding.
To retain crypto users, we are partnering with a licensed auction house to accept deposit payments in cryptocurrency (ADA and stablecoin) and help them to earn more by proposing a Bid-to-Earn business model.
System architecture and main modules
a. The architecture of the current (legacy) centralized platform
The existing auction service is deployed based on the Client-Server model. It is network centralized and poses many weaknesses as fully controlled by an auction house and requires auctioneers to operate the auction,...
b. The architecture of the proposed decentralized platform
The proposed dMAH contains off-chain code that runs on Microsoft Azure infrastructure and on-chain code runs on the Cardano blockchain network.
The architecture includes:
Backend REST APIs and 03 web frontend apps, 04 mobile apps ( 02 on iOS and 02 on Android), and the deployed smart contract on Cardano. Detail as below:
4) How does dMAH work?
The world's first Bid to Earn model ( B2E)
dMAH operates as a generated sales of rare & extraordinary assets platform that stays in between auction participants ( users, bidders, sellers) and auction houses ( ex: Sotheby's and Christie's Auction houses).
When dMAH drives users to bid and completed an auction on the platform, the auction house will pay a sales commission. dMAH takes a part of this money to share with the bid winner ( buyer) as a reward. The rewards will be converted into ADA or B2E tokens (a utility token released by dMAH ), and added to the consumer's wallet as an incentive, encouraging users to discover the crypto space. It can be transferred to any crypto wallets on CEX and DEX exchange for trading & earning.
Currently, we have been partnering with Lac Viet Auction House - the largest government-licensed auction house in Vietnam to get a great percentage of sales commissions. dMAH will accept ADA and Stablecoins as Coti payments for deposits. We also built a staking pool for Cardano, the deposited tokens ( ADA, Coti) will be staked in the pool to earn interest as income. The earning interest will be converted to a B2E token and shared with the bidders as rewards. The shared percentage for bidders from earning interest will depend on the amount of B2E token holding, amount of ADA, and period in staking.
dMAH business model: https://bit.ly/3ysDG9T
5) Impacts
Impact on the auction industry
Accelerating the digital transformation in the auction industry
Impact on users
Impact on Catalyst project and Cardano community
Drive adoption of Cardano
Impact on the Vietnam government
Direct or indirect bMAH's success will benefit ADA holders, the Cardano ecosystem, the Vietnam government and the Auction industry.
6) Source code
The source code of the system will be available at a given Github account - which will be announced on the Pitching desk ( https://bit.ly/3OHzuIq) after the project is funded, any user with technical knowledge can audit it themselves to ensure that the system is built completely transparent, bug-free, and there is no backdoor.
7) Reference URLs
8) Connect to the project team
In this proposal, we are focusing on solving the following challenges in the Cardano ecosystem:
1) Differentiate from the other blockchain competitors
According to DappRadar, there is no dApp for auctioning rare & extraordinary tangible items and assets belonging to the government. Well-known auction houses such as Sotheby's and Christie's are focusing on NFT & Ethereum-based digital-only artwork. The online auction platforms belong and are still fully controlled by the auction houses.
We build dMAH platform on Cardano, it is a fully decentralized auction platform for auctioning rare, extraordinary tangible items and government assets. It belongs to the community. The licensed auction houses such as Lac Viet Auction (https://lacvietauction.vn ) and Vereb.vn are just dropshipping partners and pay us the sales commission to return to the bid winner as an incentive.
By separate auction house and auction process based on smart contract. The bid results are seamless, transparent and honestly, it does not depend on the auction house's reputation anymore.
2) Providing a better alternative over the current centralized provider
By utilizing the power of Cardano Escrow smart contracts, a next-generation auction platform is born. Few main advantages over the current centralized platform as below:
3) Drive more adoption
a) Bring partner's current users to the Cardano ecosystem
By partnering with auction houses, we bring auction house's ten-thousands current users to the Cardano, convert them to be crypto users & keep them in the crypto space via token rewarding & incentive programs on smart contracts. Cardano users will grow day by day when we are partnering with the coming auction house as Vereb auction house and the others.
b) Bring new users to the Cardano ecosystem
Co-marketing campaigns with partners (Auction houses) to encourage users ( both none and crypto users) to download the dMAH mobile apps or visit the website. dMAH brings new users to the crypto space (Cardano ecosystem) by automatically creating a crypto wallet when opening an account. The rewarding crypto will be added to the created wallet when they completed a transaction as a bid deposit.
c) Enabling environment for cryptocurrencies ( ADA & COTI) to use in real life
There is no auction platform that accepts bid deposits in cryptocurrency. We partner with the licensed auction house to accept bid deposits in ADA & COTI. The bid deposits will be sent to dMAH's stake pool to earn interest.
4) Keep users stay longer in the Cardano ecosystem
dMAH is a metaverse auction platform that focuses on people's experiences (users, bidders, sellers, partners, and investors). We keep people at the center of business, so we can connect with them 1:1 at scale ( personalized engagement). It will improve end-user experience, and keep them staying longer with dMAH and the Cardano ecosystem To retain users, we are focusing on the following actions.
a) Mobile-first design
According to a report from CNBC, today, more than two billion people access the internet from their smartphones only. By 2025, that number is expected to jump to 72.5%. Therefore, if you are not designing for mobile, your users are more likely to have a less than amazing experience.
We focus to build mobile applications on both iOS & Android platforms and a mobile web that aims to create better user experiences by beginning the design process with mobile devices in mind first, often prioritizing the smallest of screens.
b) Build a 360-Degree user profile & view
The 360-degree user view is the idea that all user touchpoints can be aggregated inside a single profile. This allows dMAH to get a clear picture of all user interactions with the whole platform by giving them a broader context across multiple touchpoints in a single view. The 360-degree user view enables to perform deep analyses across the entire auction participant's experience or set up complex marketing automation scenarios. It helps the Cardano community have a holistic view of users in dMAH, which should lead to informed decisions spanning from improving customer experience to increasing profitability.
This is an example of a 360-degree view & profile of a user: https://bit.ly/3QZaoXC
We are working with Destined (a Platinum Salesforce Consulting Partner) to build the strategy for user engagement and user 360 profile ( auction participants profile) and an actionable plan.
c) Bid-to-Earn business model:
It encourages bidders to use cryptocurrency for bid deposits and stake ADA/B2E tokens to be shared with higher percentages of commission and earning interest. Please refer to (4) in the previous section for detail.
Below are the main risks that prevent us from delivering the project successfully and our proposed solutions
1) Legal
In general, the laws of Vietnam do not recognize cryptocurrencies as legal means of payment. So there is no official crypto payment processor. However, there are 6.1% of Vietnam’s total population currently own cryptocurrency ( 5.9 million) and they need a place to use it.
A legal entity called Novatic Singapore Pte (NSP), which owns the Decentralized Metaverse Auction House platform will be set up in Singapore to issue utility tokens as B2E and receive the bid deposit payment. At this time, NSP has been collaborating and will be signed with limited partners ( the online auction house Lac Viet Online JSC) to accept cryptocurrency ( ADA and COTI) as a bid deposit payment.
License for the auction service provider is mandatory in Vietnam.
Our strategic partner ( Lac Viet auction house) has been licensed and government-certified since June 2022.
2) Development phase
Lack of Cardano smart contract developers in the market
Actively attend the Cardano Vietnam community to hire developers
Dedicate 2 senior developers in our team to learn and develop dApp on Cardano
3) Marketing & Delivery phase
Lack of budget for marketing leads to a lack of users
A co-marketing plan and shared budget with partners will be proposed to acquire new users. A reciprocal marketing strategy is applied to bring current users to the new system.
We aim to build a Minimum Viable Product version of the dMAH and bring at least 10.000 non-crypto users from our strategic partner and 5000 new users on board the Cardano ecosystem via the 02 mobile applications on Android & iOS and mobile website.
The dMAH has 3 phases (Requirements gathering and design, Build, Testing and Go live)
Overview of phases (total 8 months):
All elements of the scope will be clarified and will gather the data required to start the design and build. This will include processes, data requirements, and much more.
Main Tasks:
- Design: Getting the look and feel right ensuring the most important information is where we need it.
- Setup an entity in Singapore.
- Agreed on sales commission and incentive with the strategic partner ( Lac Viet auction house)
- Design tokenomics and how to control the B2E token dilution
- Co-marketing & Reciprocal plan with the strategic partner
- Design non-crypto and crypto auction participants' journey
This is the largest part of the project getting everything built-in
Main Tasks:
Front-ends:
02 mobile apps on iOS & Android for users & bidders
02 mobile apps on iOS & Android for sellers & partners
01 responsive website for auction participants
Back-end:
Off-chain code runs on Microsoft Azure infrastructure
On-chain code runs on the Cardano blockchain network.
User 360-degree view & profile:
Built on the Salesforce platform
Integration:
Integrate user 360-degree view & profile into the dMAH
Integrate smart contracts into the current auction platform
Staking pool setup and integration
Main Tasks:
- System testing and bug fixing.
- Getting user's & community's feedback and making changes
- Training document, userguide & Go live
Below is our proposed rate card:
1) Software development cost: $99.570
*/ Infrastructure & Data Design: (Sever system, network, security, cloud services, customer data,..)
~ 100h x ($30/h) = $3.000
*/Core Design: (customers journey, dataflows, tokenomics..)
~ 70h x ($45/h) = $3.150
*/Web and Mobie app graphics: (UI, UX, Items drawing ..)
~ 120h x ($35/h) = $4.200
*/Co-Marketing: (Airdrop community, marketing plan, pay the advertiser …)
~ 64h x ($30/h) = $1.920
*/Frontend Dev: (Web and App coding ..)
~ 120h x ($45/h) x 5 ( 02 apps on iOS & Android for users & bidders, 02 apps for sellers & partners and a responsive website ) = $27.000
*/Build user 360 view & profile and engagement & : (Salesforce consultant, Salesforce developers ..)
~ 720h x ($60/h) = $43.200 //Pay to Salesforce implementation partner
*/Backend Dev: (Coding API, Database query, blockchain system, monitoring, backup system ..)
~ 180h x ($45/h) = $8.100
*/Blockchain developer: (Build code, Token, integrated in-platform, staking, framing ..)
~100 x ($60/h) = $6.000
*/QA & Testing: (Test core coding, testing web & app, unit test, security testing ..)
~ 100 x ($30/h) = $3.000
/* Tax(10%) but 0% for now, our government support IT StartUp.
2) Microsoft Azure infrastructure cost: 6.000$
(Servers 500$/month for 1 year. This cost will pay to Microsoft or the Cloud service provider)
3) License Tool & Resources cost: 35.000$
(Salesforce license for Sales and Marketing Cloud for user engagement, Art tools, Dev tools, …This cost will pay to Salesforce)
4) Training material & User guide: 1.500$
(Multimedia and document)
5) Project management cost: 8.000$
(1 person at 1000$/month in 08 months)
6) Staking pool setup, infrastructure, and integration cost: $5,000
The total cost of the project to request: $155.070$ - One hundred fifty-five thousand and seventy US dollars.
1) CEO
Tuan Le: (Email: tuan.le@novatic.vn) https://www.linkedin.com/in/minh-tuan-le-9210448
The other links
https://www.slideshare.net/QuangAnh3/vietnam-mobile-day-2012-developer-opportunity-nokia
http://fit.mta.edu.vn/news-toctcklaptrinhwindowsphone2013.htm
2) CMO & Auction industry advisor
Do Thi Hong Hanh ( Email: hanh.do@lacvietauction.vn)
Roles:
Ms. Hanh on official media
https://www.youtube.com/embed/fZrTutq1tCw3) CTO
Hung Nguyen: (Email: hung.nguyen@novatic.vn) https://www.linkedin.com/in/nguyen-trong-hung/
Roles:
4) Head of Design & Customer Experiences
Tran Huu Minh: ( Email: minh.tran@novatic.vn) https://www.linkedin.com/in/minhtran2311/
Portfolio: https://1drv.ms/b/s!Ash0Ys3V1p43kII2v8pdv4CnE4I6mA?e=C5fDwp
5) Head of Business Development & Partnership
Phung Tuan Anh: ( Email: anh.phung@novatic.vn) https://www.linkedin.com/in/anh-phung-tuan-31834924/
Managing workload:
Digital transformation is a must-have battle for auction houses, it helps them keep up with emerging customer demands and therefore survive in the face of the future.
The goal of digital transformation is to transform products/services to create value and benefits for the community, reducing costs & time for society and risks for investors by integrating emerging technologies like blockchain and metaverse into the current system. This is also the direction of the Cardano Foundation, Catalyst, and our team. It is a journey never ends. We will promote and return to Catalyst in a later round.
1) Product development
We will measure the progress of the project by tracking no. of completed tasks in time. We will measure it by publishing monthly material & reports for each task to the community, a task will be marked "Done" if it is completed in time and meet a level of quality. This will show the progress in product development.
Phase 1 - Requirements gathering and design - the next 2 months after approved
Phase 2 - In the next 6 months after approved
Phase 3 - In the next 8 months after approved
The source code of the project will be public at a given Github address. Anyone can access and check the objectivity and transparency of the system.
2) Drive Cardano adoption
We will measure the level of adoption in dMAH platform. We will measure it by :
Comparing these metrics each month will show that people are moving in and are interesting in our new platform
1) Product development
2) Drive Cardano adoption
This is an entirely new proposal.
SDG goals:
End poverty in all its forms everywhere
SDG subgoals:
Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable
Key Performance Indicator (KPI):
The proportion of population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims and the poor and the vulnerable
Universal Human Rights Index (UHRI):
#proposertoolsdg