Energy RWA Protocol

Proposal Summary

Budget Information: 140000 ADA

Time 6 months

Problem Statement

Energy RWA adoption is stalled by a "Hardware Wall." Producers refuse to buy expensive IoT devices for tokenization. Meanwhile, API-based solutions suffer from "Greenwashing" risks due to easily spoofed data. There is no protocol on Cardano that balances Accessibility (Legacy support) with Integrity (Anti-fraud).

Solution Overview

We are building a Data Agnostic Protocol using Aiken & CIP-68. It creates a Universal Adapter that accepts data from both Legacy APIs (Huawei/SolarEdge) and Trusted IoT. Crucially, it employs a Satellite Cross-Check Engine to validate legacy data against weather reality, ensuring trust without hardware lock-in.

Campaign Category

1. Innovation

B-REC fundamentally shifts the RWA paradigm from "Hardware-Dependent" to "Validation-Centric." While most competitors build walled gardens requiring proprietary hardware, our innovation lies in three distinct architectural breakthroughs:

  1. The "Data Agnostic" Strategy (Breaking the Hardware Wall): We recognize that replacing infrastructure is a non-starter for most energy producers. Instead of forcing hardware upgrades, B-REC builds a Universal Legacy Adapter. This middleware connects directly to the APIs of the two global market leaders: Huawei and Sungrow. Together, these giants control 55% of the global inverter market, with a combined installed base of over 1,370 GW (Source: 2024-2025 Market Reports). By integrating just these two APIs, B-REC instantly makes over half the world's solar capacity compatible with Cardano, unlocking immediate liquidity.

  2. The "Trust but Verify" Satellite Engine: Connecting to APIs introduces the risk of data spoofing (fake energy reports). B-REC solves this with a novel Satellite Cross-Check Mechanism. The protocol queries historical satellite irradiance data (from providers like Solcast) for the specific geolocation of the asset. If an API reports high energy generation during a time when satellite data shows storm conditions or night-time, the Orchestrator automatically flags the anomaly and rejects the minting request. This brings "Physical Truth" to API data.

  3. Dynamic Asset Tiering via CIP-68: We leverage the full power of the CIP-68 standard to create "Living Assets." The metadata includes a trust_tier field. The token's on-chain image dynamically renders a "Gold Border" for cryptographically signed IoT data (Tier 1) and a "Silver Border" for Satellite-Verified API data (Tier 2). This visualizes risk directly in the user's wallet, creating a transparent, tiered marketplace.

2. Prototype/MVP Demonstration

By the end of the 6-month timeline, B-REC will deploy a fully functional MVP on the Cardano Mainnet that demonstrates the complete lifecycle of a verified energy asset:

  • The Orchestrator Backend: We will demonstrate a live backend system capable of ingesting data streams from a Huawei FusionSolar account (Legacy) and a simulated IoT device (Trusted).

  • The Validation Logic: We will showcase the "Anti-Spoofing" capability by intentionally feeding fake high-generation data to the system during a simulated "night-time" period, demonstrating how the Satellite Validator detects and rejects this fraud on-chain.

  • The User Dashboard: A publicly accessible web application where users can connect their Cardano wallet (Nami/Eternl), input their inverter API credentials (encrypted), and view their real-time "Trust Tier" status.

  • On-Chain Evidence: Visible transactions on Cardanoscan showing the minting of both Tier 1 and Tier 2 tokens, with distinct metadata indicating their validation source.

3. Measures of Success

We focus on infrastructure reliability and developer adoption as primary success metrics:

System Reliability & Throughput:

  • The Transaction Batching Service must successfully bundle at least 5 minting requests into a single transaction to demonstrate gas fee optimization (~0.5 ADA per asset).

  • The API Adapter must maintain 99.9% uptime while handling rate limits from external providers (Huawei/SolarEdge).

Validation Accuracy:

  • The Satellite Cross-Check mechanism must achieve a <5% False Positive rate (incorrectly flagging real data) during the pilot phase, ensuring genuine producers are not penalized.

Real-World Pilot:

  • Successful execution of a Hybrid Pilot involving at least one real-world solar site (Legacy API) and one simulated IoT site.

Generation of at least 1,000 Verified Energy Tokens (representing MWh) on the Mainnet during the pilot window.

Solution:

The Problem Perception:

The current RWA landscape for energy is polarized. On one side, we have "Low-Trust" solutions that rely on PDFs and manual entry, leading to double-counting and greenwashing. On the other side, we have "High-Barrier" solutions requiring expensive blockchain-native IoT meters, which freezes out 99% of the market. Cardano needs a middle path that is Accessible yet Verifiable.

The B-REC Protocol Solution:

We are building the "TCP/IP for Energy RWA" on Cardano—a protocol that standardizes how energy data is ingested, validated, and tokenized, regardless of its source.

1. The "Orchestrator" Layer (Off-Chain Backend):

This is the brain of the system, designed to handle complexity so the blockchain doesn't have to.

  • Legacy Adapter: Connects to existing inverter accounts (Huawei FusionSolar and Sungrow iSolarCloud). It manages API tokens, handles rate limits via queues, and normalizes data into a standard JSON format. This instantly makes over half the world's solar capacity compatible with Cardano.

  • Satellite Validator: Before any data touches the blockchain, this module pulls weather data for the asset's coordinates. It employs a Baseline Learning Model to establish site-specific efficiency profiles, minimizing false positives while flagging statistical anomalies.

  • Batching Engine: Instead of users minting one by one (costing ~0.2 ADA + Fees each time), the engine aggregates valid data and submits one transaction for multiple assets, reducing costs by up to 80%.

2. The "Protocol" Layer (On-Chain Aiken Contracts):

  • Minting Policy: Written in Aiken for safety and efficiency. It enforces that only transactions signed by the Orchestrator's key (proving validation passed) can mint tokens.

  • CIP-68 Metadata: Stores the energy_amount, generation_time, geolocation, and crucially, the validation_method (Satellite-Verified vs. DID-Signed).

Target Engagement: We are targeting small-to-medium independent power producers (IPPs) and solar installers who already use digital monitoring (Huawei FusionSolar and Sungrow iSolarCloud) but have no way to monetize their green attributes. We also target DeFi developers on Cardano looking for a standardized RWA asset class to build lending or trading dApps.

Impact:

Value to the Cardano Community:

  • Bootstrapping RWA Liquidity: By enabling "Legacy" integration, B-REC can potentially bring gigawatts of existing solar capacity onto Cardano without waiting for hardware adoption. This creates immediate TVL (Total Value Locked) potential for the ecosystem.

  • Establishing Data Standards: We are setting the standard for how "imperfect" real-world data should be handled on-chain—not by rejecting it, but by verifying and tiering it. This model can be replicated for other RWA sectors like Supply Chain or Weather Insurance.

  • Real World Utility: This project generates transactions based on real economic activity (energy production), moving Cardano away from speculative usage towards utility-driven volume.

Sustainability Model (Post-Funding):

To ensure the protocol survives beyond the catalyst grant, we will implement a micro-fee model. A small protocol fee (e.g., 0.5 ADA) will be charged per minting transaction. This revenue stream will be used to cover the operational costs of the Satellite Data APIs and Cloud Infrastructure, ensuring the validation engine runs indefinitely without relying on further grants.

Sharing Outputs:

  • Open Source Repositories: All Aiken smart contracts and the core Logic of the Legacy Adapter will be published under Apache 2.0.

  • GitBook Documentation: A comprehensive "Integration Guide" for solar installers and DeFi devs to plug into the B-REC protocol.

  • Bi-Weekly Devlogs: We will publish technical deep-dives on the Catalyst platform, sharing lessons learned about Aiken development and Satellite API integration.

Capabilities & Feasibility

Team Capabilities:

Our team combines deep blockchain engineering with industrial systems architecture, ensuring we can handle both the "Crypto" and the "Real World" aspects:

  • On-Chain Lead: A Senior Haskell/Aiken developer with 3 years of experience in the Cardano ecosystem. Verified contributor to open-source libraries (MeshJS) and has successfully deployed NFT minting protocols on Mainnet. [GitHub: YourLinkHere]

  • Backend Architect: 7 years of experience in building high-concurrency microservices (Go/Rust). Specializes in Industrial IoT (IIoT) data ingestion and has prior experience integrating rigid SCADA/Modbus APIs. [LinkedIn: YourLinkHere]

  • Operational Security: We strictly adhere to a Security-First methodology. The Orchestrator uses a Non-Custodial design where possible. User API keys are encrypted at rest using Vault technology and are never exposed to the frontend.

Financial Management & Trust:

  • Milestone-Based Releases: We strictly follow the Catalyst Milestone operational model. Funds are only requested upon the verified completion of tangible outputs.

Detailed Budgeting: Our budget is calculated based on market rates for Senior Engineers (35- 45/hr) and includes specific allocations for third-party API costs (Satellite data) and Infrastructure, ensuring no hidden costs derail the project.

Transparency: We commit to open repositories from Day 1 (not just at the end), allowing the community to audit our progress in real-time.

Milestones

Milestone 1: The Standard & Policy (Aiken) Design CIP-68 Standard & Aiken Minting Policy

Milestone Outputs:

  1. CIP-68 Metadata Schema Definition: Design and document a comprehensive CIP-68 (Standard 222) compliant JSON metadata schema. This includes defining specific fields for data_source_type (Legacy/IoT), validation_evidence (Satellite/DID), and trust_tier.

  2. Aiken Minting Policy Development: Develop the core Minting Policy smart contracts using the Aiken language. The logic will strictly enforce that only transactions containing a valid signature from the Validation Oracle can mint tokens, preventing unauthorized creation.

  3. Property-based Testing Suite: Implement an extensive property-based testing suite (Fuzz testing) for the Aiken contracts to cover edge cases, ensuring the contract is secure against exploits.

  4. Internal Audit Report: Conduct a rigorous internal code audit and deploy the finalized contracts to the Cardano Preview Testnet.

Acceptance Criteria:

  • The CIP-68 Schema is published on GitHub and supports dynamic versioning.

  • The Aiken smart contracts compile successfully and pass 100% of the property-based tests.

  • The contract is successfully deployed to Preview Testnet, verified by a transaction hash.

Evidence of Completion:

Link to the public GitHub Repository containing the .ak source files, the JSON Schema documentation, the Test Coverage Report, and the Testnet Policy ID. Delivery Month: Month 2 Cost: 42,000 ADA

Milestone 2: The Orchestrator (Backend & Validation) Develop Minting Orchestrator with Legacy Adapter

Milestone Outputs:

  1. Legacy Data Adapter (Huawei/Sungrow): Develop the backend modules required to authenticate, fetch, and normalize energy generation data from Huawei FusionSolar and SolarEdge APIs. This includes logic to handle API rate limits and data parsing.

  2. Satellite Validator Module: Develop the anti-fraud logic engine. This module integrates with a commercial weather data provider (e.g., Solcast) to fetch historical irradiance data and cross-check it against the API reports to detect anomalies.

  3. Transaction Batching Service: Implement a transaction builder service that aggregates multiple validated minting requests into a single Cardano transaction to optimize gas fees.

  4. Trusted Data Adapter (Stub): Create the secure endpoint listener for future IoT device connections (Proposal 2 integration).

Acceptance Criteria:

  • The Backend successfully fetches data from a test Huawei/SolarEdge account.

  • The Validator correctly flags and rejects a "spoofed" data packet (high generation at night) during testing.

  • The Batching Service successfully constructs a valid transaction on Preprod Testnet containing at least 5 distinct assets.

Evidence of Completion:

A comprehensive video demo showing the full backend flow: Fetching data -> Validating against Satellite -> Batching Transaction. Link to server logs showing successful API interactions. Delivery Month: Month 4 Cost: 49,000 ADA

Milestone 3: The Producer Interface Develop Producer Dashboard Web App

Milestone Outputs:

  1. Wallet Connect & Asset Indexer: Integrate Cardano wallet support (CIP-30) and build an Indexer (using Blockfrost/Kupos) to scan and display B-REC assets in the user's wallet.

  2. Source Management UI: Develop the frontend interface allowing users to securely input their API Credentials (for Legacy) or Device IDs (for Trusted).

  3. Asset Visualization & Tiering: Create the dashboard UI that visualizes the user's energy generation history and clearly distinguishes between Tier 1 and Tier 2 assets using visual badges.

Acceptance Criteria:

  • Users can connect Lace/Eternl/Yoroi wallets and view their asset balances.

  • The "Add Source" flow works correctly, securely saving encrypted credentials to the backend.

  • The dashboard correctly renders Tier 1 and Tier 2 assets with distinct visual styles.

Evidence of Completion:

Link to the publicly accessible Beta Website. A walkthrough video demonstrating the User Experience (UX) from login to asset viewing. Delivery Month: Month 5 Cost: 28,000 ADA

Milestone 4: Pilot & Release Mainnet Deployment & Open Source Release

Milestone Outputs:

  1. Production Infrastructure Setup: Configure secure production servers (AWS/Google Cloud) with proper firewalling, SSL, and API key management (Vault). Deploy contracts to Mainnet.

  2. Hybrid Pilot Run: Execute a 14-day live pilot involving at least one real-world site using the Legacy Adapter and one simulated IoT site.

  3. Documentation & Open Source Release: Polish the codebase, add comprehensive comments, and release under Apache 2.0. Publish a GitBook with integration guides.

  4. Project Close-out: Compile the Final Project Report and Video.

Acceptance Criteria:

  • The system operates stably on Mainnet for 14 days without critical errors.

  • At least 100 successful minting transactions are recorded on Mainnet.

  • GitHub repository is public and documented.

Evidence of Completion: Mainnet Policy ID and Transaction Hashes. Link to the final GitBook. Submission of the Close-out Report and Video to Catalyst. Delivery Month: Month 6 Cost: 21,000 ADA

Budget & Costs

Total Request: 140,000 ADA

1. Smart Contract Engineering (30% - 42,000 ADA):

  • Role: Senior Blockchain Engineer (Aiken Specialist).

  • Details: This covers the design of the CIP-68 standard, the complex validation logic within the Minting Policy, and extensive Property-based Testing. Security is paramount here as this is the immutable layer.

  • Rate Estimation: ~300 hours @ $45/hr.

2. Backend & Validation Architecture (35% - 49,000 ADA):

  • Role: Senior Backend Architect (Go/Rust).

  • Details: This is the most labor-intensive component. It involves building the "Legacy Adapter" (reverse-engineering/integrating rigid 3rd party APIs), the "Satellite Validator" (complex statistical logic), and the "Batching Service" (UTxO management).

  • Rate Estimation: ~350 hours @ $45/hr.

3. Frontend Development (20% - 28,000 ADA):

  • Role: Full-stack Developer (React/Next.js).

  • Details: Building a responsive, professional dashboard. The focus is on "Non-crypto native" UX, ensuring solar farmers can use it without understanding Haskell.

  • Rate Estimation: ~250 hours @ $35/hr.

4. Infrastructure, Data & Operations (15% - 21,000 ADA):

  • Details:

  • Satellite Data API Costs: Subscriptions to commercial weather data providers (e.g., Solcast Enterprise) for the validation engine during Dev and Pilot (~$2,000).

  • Cloud Infrastructure: AWS/GCP costs for hosting the Orchestrator, Database, and Vault (~$1,500).

  • DevOps Security: Setup of CI/CD pipelines and security audits.

  • Project Management: Reporting and coordination.

Value for Money

1. Infrastructure vs. DApp:

We are not asking for 140,000 ADA to build a simple DApp; we are building a Universal Protocol. This investment creates a permanent "Bridge" between the massive legacy energy market and Cardano. The code for the "Legacy Adapter" and "Satellite Validator" can be reused by any other RWA project needing to verify real-world data without hardware, multiplying the value of this grant.

2. Unlocking Liquidity:

By enabling connection to (Huawei/Sungrow) inverters, we unlock a potential market of over 1,000 GW of installed global solar capacity that can be tokenized immediately. This provides the raw material (Tokens) needed for Cardano's DeFi ecosystem (Dexes, Lending markets) to function, generating transaction fees and "Real Yield" for the network.

3. Cost-Efficiency via Innovation:

The "Satellite Cross-Check" is a software-based innovation that saves the ecosystem millions in hardware CAPEX. For every 1 ADA spent on this proposal, we potentially unlock access to $1,000 worth of existing solar infrastructure without requiring new equipment. This dramatically lowers the Customer Acquisition Cost (CAC) for the entire ecosystem.

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