Application Status
Status: New
Last updated: Nov 11, 2024
Submitted by: Ingo Czok, [email protected]
Team: nupont.io
Approved Budget (in h):
Used Budget (in h):
Planned Delivery: 6 weeks after kick-off
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Category: Open Source Development
Application Title
æternity blockchain ERP integration via nupont.app - Stage 1
Applicant
Please refer to our team’s introduction post for more information.
Ingo Czok, nupont.io, Linked In: https://www.linkedin.com/in/ingoczok/
Value Application
This project aims to facilitate the seamless integration of æternity blockchain transactions into existing Enterprise Resource Planning (ERP) systems, automating the process. Businesses are required to record all cryptocurrency transactions that occur on blockchains within their existing accounting systems and subsequently report these transactions in their regular financial filings with the relevant financial authorities. By enabling users to generate standardized SWIFT and ISO 20022 financial statements from blockchain transactions, this proposal bridges the gap between blockchains and traditional financial infrastructure. It will make the æternity blockchain more accessible for businesses, which will in turn drive broader enterprise adoption. This can lead to æternity being utilized in multiple industries, as it becomes easier for businesses to incorporate æternity-based financial transactions into their existing reporting processes.
Definition of Terms
This project involves the integration of the æternity blockchain with nupont.app, enabling users to manage their blockchain accounts and generate financial statements that comply with standards like SWIFT and ISO 20022. These statements will reflect all blockchain transactions, including those originating from smart contracts, internal transactions, and complex balance shifts and can be processed by the users ERP systems in a straight through manner.
The project is initially divided into two stages. This Application covers stage 1:
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Basic implementation and integration:
This stage encompasses the scanning of new blocks, the extraction of fundamental transaction data, and the construction of account statements. -
Extended implementation and final deployment:
This stage will encompass the integration of æternity-specific tokens and exchange rates, as well as the integration of advanced transactions such as smart contract execution and internal transactions. AEX-9 token support and exchange rates will be added and historical transactions will be retrieved to provide account statements for any specified period.
Status Quo
Currently, enterprises face challenges when integrating blockchain transactions into their ERP systems. Most blockchain solutions do not natively support the generation of traditional account statements, leaving a gap for organizations that require detailed reporting for tax and compliance purposes. æternity’s infrastructure provides scalability, but without a bridge to enterprise systems, adoption is limited.
nupont already has developed it´s nupont.app to provide the integration of blockchains with ERP Systems. The current implementation covers the ethereum mainnet but not the æternity blockchain, which is the scope of this proposal.
Required Work
To achieve this integration, the following steps are required:
- Set up an æternity node and middleware to access blockchain data. This setup will serve as the foundation for retrieving transaction and smart contract data.
- Build a detailed specification of ISO20022 and SWIFT Messages for the æternity blockchain transactions.
- Analyze whether the existing middleware meets all requirements for statement creation or if further development is required for the nupont indexer.
- Develop a basic integration plugin that scans æternity blockchain blocks and interfaces with the financial statements generation process in nupont.app. At this stage, only basic transactions will be supported. Advanced transactions, such as smart contract executions and internal transactions that contain balance changes as side effects of smart contract execution, will be covered in stage 2. The statements created will adhere to SWIFT and ISO 20022 standards.
- Test, QA, and prepare the system for deployment.
- Make the solution available under the nupont.app url.
Estimate
Time Estimate: Approximately 6 weeks
Timeline:
- Week 1-2: Launch and configuration of the æternity node and middleware for accessing and processing blockchain data. Conduct functionality tests by retrieving test data from the blockchain.
- Week 3: Development of financial message specifications compliant with ISO 20022 and SWIFT for transactions on the æternity blockchain. Mapping blockchain data fields to financial standard requirements and verifying compliance.
- Week 4-6: Development of a basic integration plugin for scanning blocks and extracting transaction data. Integration of the plugin with nupont.app and testing the connection and data transfer.
Known Limitations
Complex transactions that contain state changes not explicitly contained in the transaction as side-effects and AEX9 Tokens are not covered at this stage, but will be covered in stage 2 of the project. There might be some issues accessing the block and transaction data needed for the account statements, but we’ll collaborate closely with æternity’s technical team to ensure that all the necessary data is accessible.
Outlook
Upon the successful completion of Stage 1, Stage 2 of the project will encompass the remaining functionalities pertaining to intricate transactions, including the retrieval of historical transactions. Additionally, AEX9 Token support and exchange rates will be added, and a mechanism for integrating private transactions from state channels into account statements will be implemented.
Even though Stage 1 is not a full-blown solution, we intend to collaborate with the æternity Foundation to promote the solution already. Our objective is to position æternity as the preferred blockchain platform for enterprises, highlighting its scalability, privacy capabilities, and integration with ERP systems through nupont.app. To achieve this, we plan to disseminate project updates through blog posts, social media platforms, and announcements at conferences.
Publishment
We confirm that the resulting ISO20022 and MT940 Specifications and the integration plug-ins will be published under an open-source license available via a Github repository. We pledge to publish any future smart-contracts developed under the æternity grants program under an open-source license as well.
Maintainance
We will maintain the specification and code with bug fixes and updates for at least one year after its initial release. This will ensure that any issues are promptly addressed, and future updates can be integrated as needed.