Please describe your proposed solution

In Web3, over $300M has been lost due to users not understanding the transactions they sign. Cardano's transaction details are often unreadable which leads to mistakes, scams, and a loss of trust. Users can’t easily see where their funds are going or what they are agreeing to, which puts their assets at risk and makes the blockchain environment feel unsafe.

One notable threat in this context is vanity address poisoning. This attack involves creating a custom cryptocurrency address that contains recognizable or desirable words or phrases. Attackers use this to trick users into sending funds to the wrong address. For example, a malicious actor might register an address similar to a popular wallet or exchange, capitalizing on users' misconceptions. When unsuspecting users copy the wrong address, they risk losing their funds permanently.

For example, a malicious actor might register an address that is similar to that of a popular wallet or exchange in order to take advantage of unsuspecting users that then copy and send assets without realizing the address isn’t a perfect match.

Context:

<https://www.certik.com/resources/blog/vanity-address-and-address-poisoning>

<https://www.kaspersky.co.in/blog/what-is-a-crypto-wallet-drainer/27046/>

<https://security-web3tech.medium.com/over-300-million-lost-to-web3-hacks-and-exploits-in-q2-2023-a-startling-report-578cc5176c31>

Solution:

TrustTX AI SDK solves this by converting complex transaction details into easy-to-read natural language. It ensures users understand:

• Who is involved in the transaction
• Where their funds are going
• What they are signing before approving

This clarity not only reduces the chances of mistakes but also helps users avoid scams, making Web3 safer and more transparent.

How It Works:

• Transaction Parsing:
• The SDK processes transaction data using Lucid utility functions. These functions convert Cardano’s binary transaction format (CBOR) into a structured format that highlights key elements such as inputs, outputs, fees, and metadata.
• Natural Language Conversion:
• After parsing, the structured data is fed into a fine-tuned LLM like GPT, Llama model, specifically trained on blockchain terminologies. This model translates complex technical jargon into simple, understandable language. For example, instead of displaying a cryptic output, it will explain: "You are sending 5 ADA to John Doe for purchasing a digital asset."
• Transparency Layer:
• The clear, natural language output is then integrated into the wallet interface, ensuring users see this information before they finalize a transaction. This interface presents essential details in a user-friendly format, enhancing the user's understanding and confidence in the process.
• Security Assurance:
• The SDK includes a validation module that checks transaction details against the user’s intent. This module can flag any discrepancies or unusual activities.

Technical Modules:

CBOR to Lucid Util Function

• Decodes Cardano's binary CBOR transaction format into a structured, human-readable format, highlighting inputs, outputs, and fees.

AI Conversion Layer

• Utilizes LLM to transform structured transaction data into user-friendly language, improving clarity and understanding of transaction details.

SDK Integration API

• Offers simple integration hooks for developers, enabling easy embedding of natural language summaries in wallets and dApps with minimal effort.

Security Validation Module

• Validates transaction details against user expectations, flags discrepancies to prevent errors, and enhances security.

Who Will Your Project Engage?

The TrustTX AI SDK will engage:

• Developers: Seeking tools to enhance the safety and user-friendliness of their wallets and dApps.
• Wallet Providers: Looking to build user trust by providing clearer transaction summaries.
• Cardano Users: Who need a better understanding of their transactions to feel secure in their interactions.

How Will You Demonstrate Impact?

We will measure the impact through:

• Integration Metrics: Tracking the number of wallets and dApps that adopt TrustTX AI SDK.
• User Feedback: Collecting qualitative and quantitative feedback on user experience improvements post-implementation.
• Scam Reduction Rates: Monitoring changes in the frequency of transaction-related scams and mistakes before and after integration.
• Transaction Clarity Assessment: Conducting user surveys to gauge increases in confidence regarding signed transactions.

Applications:

• Wallets: Enhancing transaction transparency by providing clear summaries before users approve transactions.
• dApps: Simplifying complex interactions and increasing user trust in financial operations.
• Exchanges: Offering clear visibility into transactions, reducing errors during withdrawals, deposits, and transfers.

Why This Matters for Cardano:

Cardano users, like all blockchain users, need to trust the system they interact with. By making transaction signing transparent and easy to understand, TrustTX AI SDK can significantly improve the user experience. It provides developers with a straightforward tool that helps protect users from scams and mistakes while promoting a safer Web3 environment.

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

Positive Impact:

TrustTX AI SDK will enhance user experience and security on Cardano by simplifying transaction signing. Users will engage confidently, reducing scams and mistakes while fostering greater trust in the network.

Measuring Impact:

• Integration Metrics: Track the number of wallets and dApps adopting the SDK.
• User Feedback: Collect surveys and insights on user experience and confidence.
• Scam Reduction Rates: Monitor changes in transaction-related scams and errors.
• Transaction Clarity Assessment: Evaluate user understanding before and after SDK implementation.

Sharing Outputs:

• Community Workshops: Present findings and user feedback to the Cardano community.
• Reports and Case Studies: Publish detailed analyses of the SDK's impact.
• Online Engagement: Share insights through Discord, Twitter, and Reddit.

Value to the Cardano Community:

The TrustTX AI SDK will improve transaction security and usability, leading to increased user trust and broader adoption of Cardano. This empowers users to navigate Web3 confidently, fostering innovation and growth within the ecosystem.

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 is composed of experienced Cardano developers and community members with deep knowledge of the Cardano stack. We have collaborated with reputable teams such as IAMX, Nucast, etc. contributing to the development of multiple projects in the ecosystem. This extensive background positions us uniquely to execute this project effectively.

Steps to Ensure Trust and Accountability

1. Proven Track Record: Our prior successful implementation during the SyncAI testnet demonstrates that we can design and execute complex blockchain projects that achieve measurable results.
2. Transparent Fund Management: We will adopt industry best practices for fund management, including transparent financial reporting and milestone-based fund release, ensuring that every allocation aligns with the project's progress and objectives.
3. Community Engagement: Regular updates, community-driven feedback loops, and open discussions on our development progress will be a key part of our strategy to maintain transparency and trust within the Cardano community.
4. Security and Compliance: We will utilize Cardano’s secure infrastructure and follow strict compliance standards to manage funds and ensure all operations are secure, protecting both the community’s trust and investment.

Our commitment to maintaining high standards of trust and accountability, combined with our technical expertise and successful track record, reinforces our ability to deliver DSN efficiently and transparently for the Cardano community.

What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: Milestone 1: Project Kickoff

A. Milestone Outputs

• Project Initiation Report:
• Analysis of Existing Wallet Interfaces: A thorough evaluation of current Cardano wallet interfaces, focusing on how transaction data is presented to users and the key gaps in understanding.
• Technical Review: Examination of current data extraction techniques and the feasibility of integrating Lucid for CBOR to JSON conversion.

B. Acceptance Criteria

• Completion of Initiation Report:
• Provides a comprehensive understanding of the gaps in current wallet interfaces, particularly around user comprehension of transaction details.
• Clearly outlines the project’s scope, objectives, and the expected impact of the proposed solution in simplifying transaction comprehension for non-technical users.

C. Evidence of Milestone Completion

• Initiation Report: A finalized and comprehensive document submitted to the project repository, highlighting gaps and outlining the project’s approach.

Milestone 2: Milestone 2: Technical Design

A. Milestone Outputs

• Technical Feasibility Report:
• Detailed outline of the technical requirements for developing the Natural Language Processing (NLP)-driven transaction explanation framework.
• Identification of necessary APIs, data flows, and integration points with Lucid, Llama API, and Cardano-based wallets.
• Proposed solutions for challenges related to scalability, security, and real-time transaction interpretation.
• High-Level Architectural Design:
• Comprehensive architectural diagram of the framework, illustrating data extraction (CBOR decoding), NLP integration, and the wallet UI components for displaying explanations.

B. Acceptance Criteria

• Technical Feasibility Confirmation:
• Validation that the framework can technically meet the transaction interpretation requirements, ensuring compatibility with existing Cardano infrastructure.
• Clear identification of technical dependencies and strategies to mitigate challenges.
• Architectural Design:
• The design must adequately support seamless integration into Cardano wallets and be flexible enough to handle diverse transaction scenarios.

C. Evidence of Milestone Completion

• Technical Feasibility Report: A detailed report confirming technical feasibility, submitted to and reviewed by the technical team.
• Architectural Design Document: A finalized architecture document available in the project repository, outlining all components.

Milestone 3: Milestone 3: Prototype Development

A. Milestone Outputs

• Transaction Interpretation Prototype:
• A functional prototype demonstrating the core features of the transaction explanation tool, including:
• CBOR to JSON conversion via Lucid.
• NLP-based explanations of transaction data.
• Sandboxed Testing Environment:
• A secure environment configured to test the prototype’s core functionalities, ensuring accurate translation of transaction data and smooth wallet integration.

B. Acceptance Criteria

• Successful Prototype Demonstration:
• The prototype showcases essential functionalities, including secure, real-time generation of human-readable transaction descriptions.
• Demonstrates seamless interaction between the wallet UI and the transaction interpretation framework.
• Stable Sandboxed Testing:
• The sandbox operates reliably, with no major bugs or vulnerabilities, successfully simulating transaction scenarios with accurate explanations for users.

C. Evidence of Milestone Completion

• Prototype Documentation: Detailed documentation outlining the prototype’s capabilities, usage instructions, and technical specifications.
• Sandbox Testing Report: Comprehensive records of testing scenarios, outcomes, and security validations within the sandbox environment.

Final Milestone: Final Milestone: Mainnet Deployment and Project Close-out

A. Milestone Outputs

• Final Project Completion and Closure Report:
• Comprehensive documentation covering all phases of the project, from initiation to mainnet deployment.
• Summary of key achievements, lessons learned, and evaluation of project performance against initial KPIs.
• Mainnet Deployment:
• Full deployment of the transaction explanation tool on the Cardano mainnet, integrated with major wallets.
• Deployment guidelines and best practices for developers to integrate the tool seamlessly into wallet interfaces.

B. Acceptance Criteria

• Comprehensive Documentation:
• The closure report thoroughly details the project’s technical achievements, strategic insights, and overall impact on user experience in Cardano wallets.
• Includes an evaluation of project success against predefined KPIs and objectives.
• Mainnet Deployment:
• The tool is fully functional and accessible on the Cardano mainnet, with detailed guidelines for developers and users, ensuring broad adoption.

C. Evidence of Milestone Completion

• Final Project Closure Report and Presentation: A detailed report submitted to the project repository, along with a presentation summarizing project outcomes and key achievements.
• Mainnet Deployment Documentation: Developer and user guidelines available in Markdown format on GitHub, ensuring easy access and usability for wallet developers and users.

Who is in the project team and what are their roles?

Adnan Khan

https://x.com/skepticus_x

<https://www.linkedin.com/in/adnan-khan-x/>

Adnan has over four years of experience in the Web3 space, working as a product architect for multiple startups. He previously served as a research partner at Levitate Labs, a Web3-focused venture capital firm and accelerator. Adnan holds a degree in Data Science and Machine Learning and was a core contributor to user experience research at Fetcch, a Web3 research venture.

Coherence Labs Ltd

We are a RAK DAO-based blockchain development company headquartered in the UAE, with a team of 11+ developers specializing in web3 and AI solutions. Our team has collaborated with established projects, including Biconomy, 0g, Nillion network, NMKR, IAGON, IAMX and Nucast, contributing to the development of multiple projects across the ecosystem.

Please provide a cost breakdown of the proposed work and resources

The budget is designed to ensure efficient allocation of resources across each project milestone, covering development, integration, testing, community engagement, and project closure activities. The funds will be strategically distributed to maximize the impact on Cardano's ecosystem while ensuring responsible fund management.

Milestone 1: Project Kickoff

Total: 10,000 ADA

• Project Manager: 5,000 ADA
• Senior Cardano Developer: 5,000 ADA

Milestone 2: Library Technical Design

Total: 35,000 ADA

• Project Manager: 10,000 ADA
• Senior Cardano Developer x 2 : 25,000 ADA

Milestone 3: Technical Prototyping

Total: 45,000 ADA

• Project Manager: 10,000 ADA
• Senior Cardano Developer x 2: 35,000 ADA

Final Milestone: Mainnet Deployment and Project Close-out

Total: 20,000 ADA

• Project Manager: 5,000 ADA
• Senior Cardano Developer x 2 : 15,000 ADA

This structured budget ensures that each milestone receives the necessary resources to deliver a high-impact solution for the Cardano community. Our approach focuses on responsible fund management, high-quality development, and transparent reporting to maximize the project’s success.

No dependencies.

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

Cost Justification:

The cost of developing the TrustTX AI SDK is designed to ensure high-quality delivery while providing substantial value to the Cardano ecosystem. We have adopted a lean development approach, focusing on efficiency and minimizing waste throughout the project lifecycle. This method allows us to:

• Optimize Resources: By prioritizing essential features and iterating based on user feedback, we ensure that development efforts are aligned with user needs.
• Reduce Overhead: Our team operates with streamlined processes, allowing us to allocate more budget towards impactful development rather than administrative costs.

Value for the Cardano Ecosystem:

Investing in TrustTX AI SDK represents excellent value for the Cardano ecosystem by:

1. Enhancing User Trust: Simplifying transaction signing reduces the risk of scams, benefiting users and increasing adoption.
2. Improving Security: The SDK helps protect users' funds, contributing to a safer blockchain environment and encouraging wider participation.
3. Long-Term Savings: Preventing scams and user errors can save the ecosystem significant financial losses, making the initial investment a prudent choice.

In summary, the costs associated with the TrustTX AI SDK are justified by the potential benefits and long-term value it will bring to the Cardano community, ensuring a safer and more user-friendly environment for all participants.