Project Information

DigitalAvataras DeFi App (DADA) Product Overview

The DigitalAvataras DeFi App (DADA) empowers participants on the Stellar network to securely validate counterparty identity and trust. Leveraging Zero Knowledge (zk) Proofs, DADA facilitates frictionless and open commerce, offering unbiased global financial access to all participants in the realm of digital currencies and any other type of assets. Additionally, it facilitates compliance with relevant local laws and regulations, fostering a secure and seamless financial ecosystem for developers, institutions, and individuals alike.

Positioned as a Software-as-a-Service (SaaS) solution with an API-first development stack, DADA platform consist of the following key services:

• User Wallet Service
  • An user such as a financial institution (anchor), individuals, credential issuers, etc. can onboard themselves using web2 or web3 login credentials. 
  • Decentralized Identifiers (DIDs) are created for each user which defines the identity and also serves as the signer for messages and resources that are sent to other parties. The ownership of the DIDs are solely controlled by the user.
  • DIDs are associated with DID Documents which describe how to engage with a DID. Currently DIDs are anchored on the Polygon trust system.
  • The user wallets holds encrypted decentralized identifiers (DIDs), Verifiable Credentials (VCs) along with large amounts of unstructured data such as images (medical, drawings, etc.) and documents (Offers, quotes, etc.) in a user controlled Decentralized Web Nodes.
  • It acts as an agent to facilitate exchanges of data on behalf of a user seeking liquidity or trading of any other form of value.

• Issuer Service
  • An organization can register as a source of Verifiable Credentials.
  • DADA enables the organizations to reuse standard verifiable credential schemas or define custom schemas.
  • DADA provides a marketplace for issuers to publish their offerings.
• Decentralized Web Nodes (DWNs)
  • DigitalAvataras DeFi App (DADA) platform enables the users to seamlessly create and manage their own DWNs
  • DWNs can be hosted locally and remotely (on private or public cloud environments)
  • Host multiple copies of DWNs in different places, and keep them all synced effortlessly.
  • DWNs can store large amounts of both structured and unstructured data.
  • DWNs are based on the Decentralized Identity Foundation (DIF) specification.

• Verifier Service
  • DADA provides a seamless interface through an online portal and APIs for verifying credentials using zk Proofs.
  • The service offers both private proof and selective disclosure.
    • Private proof: The credential attribute values are not disclosed, and the response is true/false of the requested value.
    • Selective disclosure: The verifier asks for one attribute value from the credential to be disclosed.

What challenges do current decentralized networks face for achieving widespread adoption?

While decentralized and trustless systems eliminate barriers to seamless online financial services across borders, their widespread adoption faces numerous challenges.

• On-Chain Addresses: Are constrained by use cases where users are not required to possess knowledge about each other beyond their on-chain addresses. This limitation results in the absence of on-chain identity, which could otherwise be utilized to demonstrate social dynamics and facilitate privacy-preserving identity, regulatory and legal assertions.
• Regulatory Uncertainty: Decentralized networks operate across country borders and jurisdictions, raising regulatory challenges. Navigating diverse legal frameworks and compliance requirements poses a hurdle.
• Personal Identification Information: The existing processes for onboarding and offboarding crypto assets are burdensome, with users' Personally Identifiable Information (PII) being managed independently by each financial institution (FI), each conducting their own Know Your Customer (KYC) and Know Your Business (KYB) processes. This results in a time-consuming and costly experience
• User Wallets: Are currently restricted to storing minimal data, primarily limited to crypto keys. In practical, real-world applications, a user's digital estate encompasses substantial amounts of data, surpassing the storage capabilities of typical crypto wallets.

Why does Stellar Network with Soroban Smart Contracts need DADA?

The DigitalAvataras DeFi App (DADA) revolutionizes how individuals and organizations globally share information, establish identity and trust, and engage in direct transactions, all while adhering to the regulatory requirements of their local jurisdictions.

DADA will implement a trust protocol through Soroban Smart Contract(s) on the Stellar platform, catering to both wallet and liquidity providers (Stellar Anchors). The adoption of a standardized protocol fosters a customer-centric environment, where quality of service and cost-efficiency emerge as key differentiators.

Trust Protocol

• The trust protocol creates a Soroban Smart Contract called Trust Smart Contract (TSC) for each financial institution (anchor) and also defines the interaction between them and the users who are seeking liquidity and transfer of any value over the Stellar network. 

Financial Institutions (FIs) and User Interaction Flow

The DADA APIs and User Interface (UI) serve as essential tools for financial institutions, enabling them to seamlessly publish information to their Trust Smart Contract (TSC). A standardized template, encompassing the minimum essential information, will be established as an integral part of the protocol. This approach ensures consistency and clarity in the data shared, fostering a streamlined and interoperable process for financial institutions to engage with the TSC through the DADA platform. By adhering to this standard template, financial institutions can contribute to the ecosystem efficiently, promoting transparency and trust within the decentralized environment.

The standard template includes:

• Specific currency or asset they support in each jurisdiction
• Licenses (Money Transfer License, etc.) and authorizations as verifiable credentials owned by financial institutions in each jurisdiction
• Total fees associated with the chosen payment for liquidity and its transfer from and to a jurisdiction
• User verifiable credentials required based on payment type, currency or asset, etc.
  • Note: The template will be designed to be extensible and customizable to accommodate various use cases and future needs.

The DigitalAvataras DeFi App (DADA) platform facilitates a user-driven process for liquidity and value transfer over the Stellar blockchain, incorporating a series of steps that enhance transparency and trust. Here's a detailed overview of the transaction flow  journey:

User Request:

• The user logs into the DADA platform and initiates a request for the transfer of value to a specific country or jurisdiction.
• Using DADA APIs, wallet providers can also initiate the above step within their wallet apps.

Trust Contracts Query:

• The DADA scans all Trust Smart Contracts (TSCs) to compile a list of Financial Institutions (FIs) along with the required verifiable credentials necessary for processing the user's request.

• The user is presented with the list of FIs, and standard template values from their Trust Smart Contract (TSC)
  • Note: FIs have the flexibility to update their TSC standard template values either through DADA platform or by directly interfacing with the smart contract

Credentials Validation using DADA Platform:

• The user will choose a Financial Institution (FI) that best aligns with their needs and request verifiable credentials, such as licenses, etc., that authorizes the business in the specified jurisdiction.
• FIs will generate the zero-knowledge (zk) Proof and share both the proof and claims related to their licenses, among other credentials, with the user.
• The user will verify the claims and associated zk Proof provided by the FIs.
• The user will generate the zk Proof and share both the proof and claims required by the FIs to process their request.
• Financial Institutions (FIs) will verify the claims and associated zk Proof provided by the user.

Formal Quote Request:

• After both parties have validated the verifiable credentials, the user proceeds to request a formal quote from the selected Financial Institution (FI).

Quote Adjustment and Acceptance:

• FIs may adjust the base template values, such as fees (as necessary), and send a quote to the user.
• The user evaluates the quotes and accepts the one that best aligns with their requirements.

Order Confirmation:

• An order is generated by the FI, representing a formal agreement. Both parties sign the order using their DID crypto keys.

Off-Blockchain Execution:

• All the preceding steps occur within the participants' wallets outside the blockchain network.

Blockchain Transaction:

• After the order is confirmed by both parties, they can settle their transaction outside the DADA platform using their existing Steller network process.

Status Update:

• The DADA platform marks the above flow with a complete status, signifying the successful execution of the Trust protocol.
• Alternatively, if either party decides to cancel the order, the flow is marked as canceled.
• Additionally, the user and Financial Institution (FI) can link their Stellar blockchain public keys with their Decentralized Identifiers (DIDs), allowing the DADA platform to monitor and include payment information in the generated Merkle Tree. 

Merkle Tree and Zero Knowledge (zk) Proofs:

• Post-transaction, the DADA platform acting as an Issuer, wraps each Trust Protocol Step as a claim and issues to both the Financial Institution (FI) and the user wallets that participated in the flow as Verifiable Credentials.
• The tree node of the Merkle tree, Zero-Knowledge (zk) Proofs generated during the 'Credential Validation' step, is stored in the Trust Smart Contract (TSC) and also in the wallets of the participating parties. This ensures a cryptographically secure and verifiable record of the flow.
  • Note: To optimize the cost of storage in Soroban smart contracts, the TSC data will be archived and restored as needed.

This comprehensive flow ensures a secure, transparent, and auditable process for value transfer, leveraging blockchain technology and decentralized identity principles. The protocol can be generalized, enabling opportunities to build various transfer use cases on the Stellar network.

Benefits to Stellar Network

The DADA platform empowers participants to discover, negotiate, and issue the interaction flow as a verifiable credential, incorporating the user-verified Zero-Knowledge (zk) Proof and the Financial Institution (FI)-verified zk Proofs. These elements are stored in the Trust (Soroban) Smart Contract and also in the wallets of the participants (FI and user).

DADA platform also facilitates Stellar anchors or businesses to transact digital representations of real-world assets (RWAs), encompassing Central Bank Digital Currencies (CBDCs), stablecoins, securities, and more, utilizing the Trust protocol.

Some of the key benefits include:

• Regulatory Compliance:
  • Verification Without Disclosure: ZKPs enable regulators to verify compliance without exposing sensitive details. Participants can prove adherence to regulations without revealing specific transaction details. 
  • Privacy-Preserving Audits: Regulators or third-party audit companies can perform audits without requiring access to all transaction data, enhancing privacy while ensuring regulatory compliance.
  • Local Laws and Regulations: ZKPs can be tailored to comply with specific local laws and regulations, providing a flexible framework for regulatory oversight.
• Dispute Resolution:
  • Immutable and Verifiable Records: ZKPs contribute to creating immutable and verifiable records on the blockchain. In case of disputes, the integrity of the interaction flow and transactions can be cryptographically proven.
  • Transparent Resolution: Participants can use ZKPs to transparently demonstrate the validity of claims without disclosing unnecessary information, fostering trust and efficiency in dispute resolution.
  • Smart Contracts Integration: ZKPs integration into smart contracts, automate certain aspects of dispute resolution based on predefined rules and conditions.

Future Work

• Cross-chain identity and trust support.
• Expand the Issuer marketplace, along with AI bots acting as Issuers.
• Work with Stellar foundation to standardize the Trust Protocol as a Stellar Ecosystem Proposal (SEP).

The core team consists of three dedicated members: Guru, Sudheer, and Chandu. They bring substantial experience in product management, consulting, and team management within the software development domain.

DigitalAvataras and its subsidiary have entered into an agreement with TechGrit, based in Texas, specializing in providing technical resources on a contract basis.

Gururaja Bandiatmakur, CEO & Founder of DigitalAvataras

https://www.linkedin.com/in/guru-bandiatmakur-86bb621/

Software Engineering and Cloud professional with over 20 years of experience leading strategy in Information Technology utilizing Servant Leader, Lean-Systems, Result-Oriented approaches with particular focus on Architecture for Cloud, DevOps and Agile transformation. Proven track record leading and mentoring teams in best Engineering practices, Software Architecture, Quality Engineering and Automation.

Possesses in-depth expertise in blockchain architecture and protocols, cryptography, security principles, smart contract development, Zero Knowledge Proofs, and more. Demonstrated experience in developing software products utilizing AI and distributed systems across diverse sectors such as FinTech, healthcare, and retail

Well versed in multiple Programming Languages, Software Development Stacks, Mobile Technologies, Big Data Strategies, Container Technologies, Machine Learning Concepts, Security Models, Network Protocols, etc.

Sudheer Ghanathe, CTO & Co-Founder of DigitalAvataras.

https://www.linkedin.com/in/sudheerghanathe/

Industry leader with proven expertise and experience in Payments, Education, AI, Banking, Consumer Financial Services, Financial Data Aggregation, Data Access partnerships and integrations with 1000s of financial institutions across US and International markets.

Information Technology Leader with strong experience on managing large portfolios and teams, working on a diverse set of technologies and business domains. Years of experience and deep knowledge of Enterprise Architecture and Software Engineering methodologies. Have 20 plus years of experience driving business critical solutions with Cloud SaaS, PaaS, Web, API and SOA based developments, Data & Analytics, Process Automation, Infrastructure migrations, Tech Transformations and Integrated DevOps.

In-depth knowledge and experience with Online Banking, Risk, Fraud & Compliance, Australia CDR, FCRA, CFPB Compliance, Tokenization based payments and Financial Data Aggregation. Demonstrated leadership with IT strategy, Team management and Strategic Transformations. Successfully led several portfolio assessment initiatives, information management strategies and technology analysis.

Specialties: AWS, Cloud Hosting, Business Intelligence, Systems Integration, Product Evaluations, Technology POCs, Information Security, UX Architecture

Chandu Tumula, CPO at DigitalAvataras.

https://www.linkedin.com/in/chandut/

Product Manager at OpenText, a global leader in information management and security. With a master's degree in data analytics and over 19 years of software product development experience, I specialize in designing and delivering innovative cloud solutions for access management, authentication protocols, and behavioral analytics.

Core competencies include software architecture, design, OOAD, network systems, distributed systems, security, identity and access management, functional programming, REST, Docker, Kubernetes, and continuous delivery. I have successfully led and contributed to multiple projects and products in the IDM and SSO domain, some of which were acquired by leading companies such as Citrix. I have also demonstrated technical leadership, solution architecture, and customer support skills in various PoCs and deployments. My mission is to leverage my data analytics expertise and cloud skills to create secure, scalable, and user-friendly solutions that meet the evolving needs of customers and stakeholders.

TechGrit - Provider of Software Engineering Resources

https://www.techgrit.com/

We automate business processes and intelligence. We help our clients navigate their current state to understand business goals and determine optimal business processes and workflow using lean methodologies to maximize efficiency.

Each deliverable will be developed as an independent service, facilitating the parallel implementation of the certain modules. A team of four developers, each possessing diverse software development skills will be engaged. The integration of these services necessitates collaboration efforts from all developers.

Deliverable D1 - Trust Smart Contract (TSC) Service

• Define, create and provisioning of Soroban smart contract through DigitalAvataras DeFi App (DADA)
• Integrate TSC Soroban smart contract with DADA platform for updating Zero Knowledge (zk) Proofs
• Define and implement TSC standard template, Trust protocol flow, and others as verifiable credential schemas.

Deliverable D2 - Stellar Integration Service

• Integrate Stellar network payment flow with DADA Wallet service module.

Deliverable D3 - User Wallet, Issuer, Verifiable & DWN Service Updates

• Extend the services to support TSC and stellar integration

Deliverable D4 - Backend Service

• Services orchestration, middle-tier, Decentralized Web Nodes, etc., updates.

Deliverable D5 - Frontend Service

• User Wallet, Issuer node, and Verification flow updates and integration

Project Timeline

Our objective is to initiate the Stellar and Soroban integration project in the first week of April 2024. The project start date may be accelerated, subject to securing the required financial resources. Initial project estimates suggest a duration of 6 to 8 weeks, with a projected completion date in mid-May or the fourth week of May 2024. The project milestones are defined as follows:

• D1 - Trust Smart Contract (TSC) Service
  • The service will be an open-source project with an expected completion in 2-3 weeks. The code will be published on Github so other development teams can verify and audit smart contract code.
    • Software development and delivery hours: 80 
    • Budget estimated:7,600 USD
• D2 - Stellar & Soroban Integration Service
  • The expected completion in 2 weeks.
    • Software development and delivery hours: 80 
    • Budget estimated: 7,600 USD
• D3 - User Wallet, Issuer, Verifiable & DWN Service Updates
  • The service is dependent on D1 and D2 and hence development begins after their completion. The expected completion is 2 weeks.
    • Software development and delivery hours: 80 
    • Budget estimated: 7,600 USD
• D4 - Backend Service
  • The service is dependent on D3 and hence development begins after its completion. The expected completion in 2 weeks.
    • Software development and delivery hours: 80 
    • Budget estimated: 7,600 USD
• D5 - Frontend Service
  • A significant portion of this service can commence independently, but its full completion is contingent upon the conclusion of all other services. The expected completion is 2 weeks.
    • Software development and delivery hours: 80 
    • Budget estimated: 7,600 USD

The requested budget is primarily allocated for the implementation and integration of the Trust Protocol Sorobon smart contract and Stellar network with DigitalAvataras DeFi App (DADA). The funds will be solely utilized for the aforementioned services and their updates.

The user interface, scalability, and performance of the DADA platform require further improvements, which will be funded through sources such as family and friends. The platform service will be provisioned on the Google Cloud Platform and will be funded for the next two years through their start-up funding program.

Additionally, the goal of the DADA platform is cross-chain and aims to make verifiable credentials and Zero Knowledge (zk) Proofs portable and reusable for KYC/KYB & AML policies, supporting open-banking needs. The funding requirements for this initiative will be estimated in future revisions of the DADA platform.