NFT - Proof of Authenticity | Lido Nation English

[IMPACT]

In order to prove the authenticity of an art piece, you first need to assess the authenticity of the creator. It is too easy for anyone out there to steal digital art pieces (google and save-as) from not-so-well-known artists, and pretend it is theirs, as they mint the NFT from an anonymous address on the blockchain. It would be so reassuring for all the subsequent buyers (first sale and resale) of such NFT to buy with a proof of authenticity, and to have clarity on what they own exactly. At its heart, this is what this solution is proposing to address.

By using DIDs and certificates, a decentralised app could provide what follows:

adding an authenticity certificate, issued by an issuer (the artist), on the holder (in our case the NFT itself ; that means the NFT is also referred with its own DID) ;
verifying an authenticity certificate via a properly accredited body (program) acting as a verifier
enrolling an artist (known by his DID) into the authenticity program to allow this artist to issue certificates on certain NFTs
removing an artist from the authenticity program, therefore preventing this person to issue an authenticity certificate to any NFT
flagging an artist as a scam artist (therefore all his signed authenticity NFTs would become flagged as scam too)
adding a rights certificate (such as rights to print, rights to resale, rights to reproduce, etc…) issued by an issuer (initially the artist, but then the current owner), on the NFT itself. Such rights follow the NFT's life.

A fully enrolled creator would be able to add an authenticity certificate to any NFT. An NFT buyer would be able to verify the certificate of authenticity of the NFT by accessing a simple URL (given as part of the metadata of this NFT). The minter/creator would also be able to add a set of rights specifying what this NFT can be used for, which can also be verified by anyone on-chain. The next owner of this NFT could restrict further the rights of the NFT on sale (for example, selling the NFT without its original physical reproduction rights).

Web3 transactions of goods and services require trust and be explicit as to what is agreed by the transaction.

In regards to trust, this is not just about the trust that the transaction can be executed, which most ecosystems provide. Most importantly, in consideration of transacting NFTs, it is about the trust that the buyer is who she says she is (would you agree to sell to a Bot?), that the seller is who she says she is (would you agree to buy from a scam-artist?), and in our case, that the transacted object (the NFT representing the digital art) is also what is it supposed to represent. When you buy the NFT and end up with ownership of it, you want to be sure that you also own a digital version of this art which was not counterfeited, and which comes with an authenticity stamp from its creator.

In regards to rights, the NFT will come with a clear set of copyrights, what is permitted, and what is not. Each new owner in the chain inherits the rights set by the previous owner, allowing such owner to pass on the NFT with less rights than when he received it, and therefore possibly keep some rights even after the sale (yes, past owners may want to exercise the right to keep some rights!).

This Proof of Authenticity and Proof of Rights for NFTs minted on Cardano will elevate the Cardano ecosystem by adding trust, transparency, clarity (governance) via smart contracts.

This project is likely going to evolve into a larger one, since it is such a necessary piece of infrastructure in the Cardano eco-system. A few years from now, we will wonder how we were accepting transacting NFTs without any proof of origin, or any copyright associated to them. This is like buying blindly and without certainty of what you ultimately own, thinking that someone else will want it even more later…

As a consequence, the main challenge will be to contain this project into something that is self-sufficient, but that delivers value. This is why it has been restricted initially to authenticity and copyright, but it will likely require future evolutions around some improved validation and certification of the artists themselves, of the verifiers (how can you be sure that a particular verifier is trustworthy) and even possibly of the rules of exchange between buyers and sellers. For example, one could think that in the future, certain NFTs would require buyers with certain attributes. We have contained this project as much as possible to avoid those risks of a very large backlog of features.

Another risk is the dependency on third party systems (such Atala PRISM SDK for the DIDs), but this is a reasonable risk considering the improved maturity of the underlying solution.

Finally, the risk of over-running the planning has been mitigated by a relatively safe and detailed plan which spans over 5-6 months, with clearly identified responsibilities and deliveries.

[FEASIBILITY]

This project will be delivered in an estimated 10-12 iterations of 2 weeks short agile sessions. The main stages are:

Finalise the specs around certificates (authenticity and rights)
Web3 smart contracts:
Test scripts for the various smart contracts
Proof of Concept with Atala PRISM SDK for an authenticity certificate program: (i) issuing DIDs on NFTs ; (ii) issuing a certificate of authenticity ; (iii) verifying the certificate of authenticity
Proof of Concept for approving, removing, viewing, flagging, artists in the “right to issue authenticity certificate program”
Proof of Concept for a copyrights certificate program
Beta version of the smart contract
Documentation (concepts, APIs, samples)
Production ready version of the smart contract
Web3 API and web-app
An easy to use web3 integration
Web app for checking content of each specific certificate (authenticity, copyrights, artists)
Website (marketing, doc, discord, twitter, etc…)
Communication plan
Community events
Integration with NFT minting programs

Work packages and associated costs:

Specs : $3,000
Test framework : $1,500
Dev Smart contracts (Beta) : $17,500
Review Smart contract (Prod) : $6,000
Dev Web app : $10,000
Doc : $1,600
Marketing : $3,000

Total = $42,600

Project Lead:

Eric: https://www.linkedin.com/in/ericduneau/ - 20+ years in software, was CEO/CTO of a $30m software business. Sold the business in 2019, has since reconverted to Cyber & Crypto projects. Eric has won a F7 fund for an NFT profile picture morphing via AI project, which is currently being delivered, and which is in the crossroad between Human and AI artists, touching on the question of authenticity of the creation, and rights of usage.

This project will be developed in partnership with the FLUID7 Team:

Jonathan: Software architect, SPO, Prism pioneer, Dandelion IA Network

Aman: Systems Administrator, Linux Admin, Devops, Network engineer

Maksim: Lead Developer, Full stack developer

[AUDITABILITY]

This is mostly an open source project for which there will be fully transparent and daily Github commits to measure its progress. In later stage, progress can also be gauged via community engagement (discord and events).

Technology: success is the delivery of what was planned as part of the smart contracts, web apps, test, samples and docs. It should just do what it says on the tin, ie add a certificate on top of an NFT to prove authenticity and to give copyrights. Success is also defined by delivery as per the plan, and some additional criteria for extremely low cost of transaction and fast performance (to be validated during test-net phase)

Engagement: success is defined by the adoption of this solution by the community at large, and by some NFT minting programs. Goal of having a community of over 1,000 on Discord within 6 months.

Commercial: success is if/when the project goes beyond the current scope and gains legitimacy to have its own utility and its own tokenomics. This part is unlikely to be reached so early, but it could be reached at a later stage.

This is a NEW project

SDG Rating

SDG rating

SDG goals:

Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

SDG subgoals:

9.b Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities

Key Performance Indicator (KPI):

9.b.1 Proportion of medium and high-tech industry value added in total value added

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