[IMPACT] Please describe your proposed solution.

ArgusNFT: Strengths and Limitations

Counterfeit (i.e. fake) and otherwise plagiarized NFTs are a serious and growing problem. Back in January, Opensea.io, the world’s largest NFT marketplace, admitted that over 80% of the NFTs being minted using their free minting service “were plagiarized works, fake collections, and spam.” (1) And forums like the Twitter account @NFTtheft – which currently has over 20,000 followers – have documented some of the human cost of NFT plagiarism for both artists and NFT traders.

ArgusNFT is an AI-powered, counterfeit NFT detection protocol built to address this problem. It monitors all NFTs minted on Cardano, detects any NFTs containing identical or similar images and/or metadata, and assesses the likelihood that similar NFTs are counterfeits. ArgusNFT has recently partnered with JPG Store, the leading NFT marketplace on Cardano, to help the Store protect its inventory from counterfeit NFTs. Later this year, the launch of Aegis – an encrypted image registry and notification service – will further protect creators and collectors from bad actors copying their digital assets. And the ArgusNFT team will soon begin building out Argus support for Ethereum and additional blockchains to protect against cross-chain plagiarism and scams – a problem that’s growing as NFT trading migrates away from Ethereum onto other blockchains.

That said, the problem of NFT scams and plagiarism can’t be comprehensively addressed by ArgusNFT alone. At least until Argus scales to support all major NFT ecosystems, its AI-powered detection services will be key components of NFT authentication rather than a comprehensive solution in itself. And realistically, no matter how scalable Argus is, or how extensive its market penetration proves to be, there will always remain many digital images and NFTs beyond its scope that can be exploited by bad actors.

For these reasons, the best way to fight NFT plagiarism and scams is to attack the problem from multiple angles. Argus can determine with high accuracy whether a given NFT is a counterfeit or copy of another NFT within its purview, but for a more comprehensive solution it’s also necessary to assess the legitimacy of an artist or team behind a given NFT collection. Fortunately, solutions to help answer this question are emerging in the field of Digital, Self Soveriegn Identity (SSI). And a solution proposed by the team at ProofSpace can provide a 360o Solution to NFT plagiarism and scams when combined with key tools like Argus.

ProofSpace x ArgusNFT: Foundation for a Comprehensive Solution

The applications of Decentralized Identifiers (DIDs) and SSI are as broad as traditional, identifying credentials, and eventually identity - the power of reputation and credit it could unlock - will become an important part of NFT markets. But the contribution of SSI to the problem of NFT plagiarism and scam collections can be boiled down to the following:

1. NFT project owners need a way to demonstrate to NFT collectors that they’ve created the project and the works they intend to sell. And conversely, collectors need a way to easily verify whether the assets they’re buying, and the artists and teams behind them, are legitimate.
2. In the current market, legitimate NFT artists and teams typically demonstrate their investment in a project through building community on social networking platforms like Twitter, through the launch of a website, and/or ownership of other accounts that speak to their professional reputation.
3. Using DIDs, proof of ownership of various accounts - whether they be an email account, or an account on Twitter, Artstation, etc. - can be included in an encrypted identifier that proves the same individual or entity that owns these accounts, also registered a collection of images on IPFS (in preparation to mint them as NFTs), or registered said collection with an NFT minting platform (again, in preparation for minting).
4. In addition to proving ownership of various accounts evidencing one’s creative legitimacy, artists and project owners can attach a verifiable credential to this identifier proving that they scanned their collection on Argus, and that Argus found it to likely be an “original” (i.e. not likely a counterfeit) collection.
5. By simply querying a DID on a verification interface (like one that can be built at argusnft.com) NFT collectors can quickly and easily access all the above proofs in a human readable format.
6. By having personal DIDs and holding NFT ownership verifiable credentials, owners may perform B2C verifiable interactions while onboarding to a marketplace, receive reputation credentials, and more.

Given the synergy of Proofspace's DID solution and Argus, and how much the combination of these two solutions could improve trust in NFT markets, we're proposing the development of a Proof of Concept (PoC) demonstrating the integration of a number of verifiable credentials, including one issued by the ArgusNFT (NFT minting history verification) platform.

You can view a detailed schematic of the workflow for this PoC here:

https://miro.com/app/board/uXjVOpvimLc=/

In summary though, with this PoC the following will be possible:

1. With a ProofSpace App a user can obtain the Verifiable Credentials for the social accounts, email …
2. Onboard with that Verifiable Credentials to the argusnft.com using ProofSpace App and QR/Deep linking depending on the platform(desktop/mobile) browser. Receive ArgusNFT Account verifiable credential …
3. Provide and verify with ArgusNFT a link to the created collection …
4. Receive a verifiable Collection Ownership credential after ArgusNFT AI lookup and checks …
5. Confirm NFT minting (on a selected minting platform) with ArgusNFT Account and Collection Ownership credentials to be used to generate NFT’s collection DID and issue public Author of Collection credential …
6. And onboard to a selected Marketplace with Collection Ownership and Author of Collection credentials to be listed in the Marketplace.

A draft workflow is available as PDF attachment to this proposal.

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

Our teams at ProofSpace and ArgusNFT believe that if credentials like these are created and included in the metadata of NFTs when they’re minted, it will dramatically reduce the ability of art thieves and scammers to exploit NFT markets. And with AI projects currently in development which quantitatively assess the legitimacy of social accounts, we’ll soon be able to add one more powerful identifier to these credentials to optimize their power and utility. In their “final form, these credentials should finally allow NFT marketplaces to fairly afford visibility to creators of all kinds, and scale apace with creativity and innovation, without wasting time and resources trying to filter out thieves and copycat collections.

Given the power of this solution, we’re confident that NFTs + DIDs + key credentials like Argus verification of minting history will become an industry standard, and mark a key step in the maturation of the NFT space. Indeed, we have already started collaborating with the Cardano SSI Alliance (coordinated by Tony Rose and the PRISM team) around a set of standards for DIDs and NFTs. Through work that is being done by our team, PRISM, IAMX and others in Cardano it seems there is an organic convergence around such specifications and we look forward to being a part of the on-going effort to agree upon and implement these specifications. We’re committed to helping Cardano projects pioneer this step in the evolution of NFT markets, and generate a lot of positive attention and adoption of Cardano NFTs in the process.

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

The main risk involved with this project that could prevent its successful completion, are the unknowns our two teams have about each other - whether we'll be able to successfully communicate and coordinate to achieve the milestones and deliverables agreed to in a timely way.

To mitigate this problem, both teams have vetted one another through several meetings, and by doing much preliminary inquiry into the nature of the project and research into the solution to the problem we seek to solve. We've developed a solid working relationship which leaves both teams confident in our combined abilities to complete the PoC as promised.

Additionally, there's a risk we could deliver the promised solution, but that it could fail to garner widespread adoption in the Cardano NFT community. And while we can't promise the adoption of a cutting-edge solution like the one we're working on, we're taking steps to ensure we do everything we can to foster the solution's adoption, including:

1) Attending roundtables of statkeholders in both the Cardano NFT and SSI communities to help ensure our solution is consistent with any emergent innovations and standards arising from the Cardano dev community.

2) Budgeting funds to widely present our solution to the above stakeholders, along with a wider demographic of Cardano NFT marketplace operators and market participants.

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

Tasks

Deliverables & Milestones

June - July

• Workflow design and Implementation R&D (70% complete)

September

• Social Accounts, email, phone Verifiable Credentials issuing. (ProofSpace)

October

• Integration with ArgusNFT via webhooks. Flow setup and testing.

November

• Public credentials RnD
• Integration with Minting Platform via webhooks. Flow setup and testing.

December

• Integration with Marketplace via webhooks. Flow setup and testing.

Managing the workload of this and other proposals:

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.

Proof Space Deliverables

Cost (USD)

Workflow design, R&D $1,837

Social Accounts, email, phone Verifiable Credentials issuing. (ProofSpace) $5,175

Integration with ArgusNFT via webhooks. Flow setup and testing. $1,339

Public credentials RnD $673

Integration with Minting Platform via webhooks. Flow setup and testing. $1,339

Integration with Marketplace via webhooks. Flow setup and testing. $997

ProofSpace Subscription (Validate Package) $2,277

ProofSpace Support (15hrs at $140/hour) $2,100

Proofspace Subtotal $15,736

ArgusNFT Project Budget

Cost (USD)

Workflow Implementation R&D $725

Handle onboarding flow (api/webhook and persistence) 2 weeks $4,250

Handle Authenticity Flow (approx. 3 weeks) $7,450

1. ArgusNFT API
2. ProofSpace Credential Verification
3. Digital Assets Download and Verification
4. ArgusNFT Collection Ownership ID

NFT Minting (develop in-house or outsource DID minting platform integration) $5000

ArgusNFT support $1500

Project Coordination and Admin $2,000

Outreach presentations and Q&A's following completion of PoC $750

ArgusNFT Subtotal $21,675

<u>Total Project Budget: $37,411</u>

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

ProofSpace

ProofSpace is a multi-network identity platform, wrapped with no-code tools for building and scaling decentralized ID workflows and ecosystems. Our goal is to eliminate the barriers to adopting Self-Sovereign Identity (SSI) and proliferate the range and volume of use cases on production. Our vision is to power global digital inclusion and cross-chain commerce with interoperable verifiable credentials, and in so doing expand use of blockchain as a medium of trust. We are live with Hyperledger Indy, on testnet with Atala PRISM and reviewing SSI protocols on Polkadot, Ethereum and Solana. LinkedIn | Twitter | YouTube | Knowledge Base

The key members of the ProofSpace team supporting this proposal include:

• Nick Mason - CEO. Experienced social entrepreneur and venture analyst with a proven track record of social venture funding and of starting and growing ventures in Europe and Africa. Background as Consultant venture analyst at Toniic, Head of Portfolio and Operations at BeyondMe, UK Director for Sierra Leone based education charity and Trustee for Street Child. Co-Founded ProofSpace (formerly ZAKA in 2019).
• Viktor Radchenko - CTO and Mobile. 20-year R&D track record. Skilled in project and product management, solution architecture, science consulting, blockchain, mobile, web, game, and embedded development. 6 publications in peer-reviewed journals.
• Ruslan Shevchenko, PhD - Solution Architect and BE. Skilled architect and scientific researcher with 30-years’ experience across blockchain, telecom, advertising and financial services. Researcher in the Institute of Software Systems and Founder of several successful ventures including NBI (an Internet Provider), GradSoft (a software development firm) and UA Scala user group. 10 publications in peer-reviewed journals, co-authored book entitled “Methods of Algebraic Programming” and is an active columnist for the Ukrainian developers' community portal.
• Alexey Hodkov - Frontend/Backend. Talented web backend and frontend solution architect and developer with 17-years’ experience. Team leader, tech mentor and CTO in complex projects for various companies like Yandex LLC and Megogo.
• Viacheslav Zhelobkov - Senior Mobile Dev. Software developer with 20 years experience in wide variety of IT areas including embedded, mobile, web, backend, etc. in roles from solo founder to Solution Architect and CTO.
• Olesya Kershaw - Business and Customer Success Analyst. A professional musician, experienced concert pianist and teacher who made a career change into digital technologies. She uses her analytical, relationship building and research skills in her work as a business and customer success analyst, while continuously developing her technical skills.

Argus NFT

ArgusNFT is developing a suite of cross-chain solutions to improve trust and discovery in in NFT markets. Argus, which is ArgusNFT’s flagship product, is an industry-first solution to the problem of fake/counterfeit NFTs and plagiarized artwork being sold as NFTs. It employs artificial intelligence and machine learning (AI/ML) to verify the minting history of NFTs, providing stakeholders information they need to determine whether an NFT is an original or a copy. Agrus currently supports all Cardano NFTs, and R&D is ongoing to integrate support of additional blockchains to protect against cross-chain copies. LinkedIn | Twitter

The members of the ArgusNFT team supporting this proposal are:

• Giovanni Gargiulo - CTO. Principal Software Engineer with 15+ years of commercial experience. DevOps advocate with strong experience in Machine Learning, distributed systems and cloud. Cardano Plutus Pioneer, Stake Pool Operator and Open Source Developer. Linkedin, Git

• Anthony Capitan - CBDO. Entrepreneur with 7 years business development experience, 15 years sales, marketing and project management experience, primarily in financial services and real estate. Linkedin

• Jaime Caso - Full Stack and Mobile Engineer - Stake Pool Operator and Cardano Wallet Developer. Linkedin, Git

• Kurt Hartmann - Kurt Hartmann has 20+ years of experience as a developer and architect working as an IT consultant for companies in the financial, health, and retail industries. His areas of expertise include modernizing and integrating legacy systems, ETL batch jobs, building API data sources, and implementing workflow patterns using micro-services and messaging. He also has a solid background in database design and web services. He participated in the Cardano Plutus Pioneer Program (cohort #1) and has spent significant time learning the Haskell programming language.. Git

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

Depending on the reception of this solution within the Cardano NFT community, and the availability of other sources of funding, we may return to project Catalyst to assist in integration with smaller NFT minting platforms and/or marketplaces offering minting services.

Also, we'll consider submitting a marketing/outreach proposal focused on leveraging the solution to promote adoption of Cardano creators currently operating in other blockchain ecosystems.

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

Overall

• Publication of project deliverables through monthly reports, which will demonstrate adherence to the work plan.
• Pilot collection minted with DIDs in accordance with ArgusNFT and ProofSpace.
• Hold meetings with leading NFT marketplaces on Cardano, the NFT Guild, and the Cardano SSI Alliance to present our NFT DID proof-of-concept

ProofSpace

• Functioning workflows for Argus NFT, creators, a minting platform and a marketplace, including integration with existing and third-party systems.

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

Success for this project looks like:

1) Completion of the PoC combining ProofSpace’s no-code DID platform with the Argus API - in a way that conforms to any NFT/DID standards that emerge from conversations ongoing between Cardano’s SSI and NFT communities.

2) Completion of a presentation demonstrating the potential benefits of this PoC, and how it might be incorporated by NFT project owners and marketplaces.

3) Presentation of the PoC to the NFT guild and the Cardano SSI alliance, as well as to the Cardano NFT community via social media, Q&As, Twitter Spaces, etc.

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

This is a new proposal.

Sustainable Development Goals (SDG) Rating

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

"… Facilitate sustainable infrastructure development for developing countries; support domestic technology development and industrial diversification; universal access to information and communications technology … "

Goal 16: "Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels"

" … develop effective, accountable and transparent institutions; ensure responsive, inclusive and representative decision-making; strengthen the participation in global governance; provide universal legal identity … "