Paperclip description devpost

Inspiration

The concept is a result of long iterative development of the idea of a decentralized bank where individual persons. The concept was first publicly written about here

It combines multiple ideas already in work into one singular tool:

  • Legal entity as a service, example: Opencollective
  • Collateralized positions, example: Maker CDP
  • Fiat initiated transaction relayers, example Limepay
  • Slashing of stake, example Ethereum Casper

What it does

It provides simple and trustless bank account integration to dapps. Dapp builder can as easily integrate credit card payments as token payment, without having to sacrifice privacy or decentralization (as is the case when hooking up personal bank account) or spend money and time on setting up business and a business bank account.

It has a Paypal account which can take all the credit card payments directly from dapp front end. Dapp can then spend it's fiat balance by sending a transaction to Paperclip dapp. Paypal account owner has to add stake into Paperclip (in cryptocurrency) which gets taken away in case he tries to run away with money. Paypal account owner gets to keep a fee for every successful transaction.

It doesn't provide cryptocurrency onramp.

How we built it

We made a solidity smart contract that manages all the interactions and keeps the stake. We deployed it together with Chainlink node onto Quorum network. We used Chainlink existing Paypal API sandbox. Quorum enables us to deploy private versions of Paperclip or its elements when there is sensitive data or Schelling point games are used to increase the trust in the system.

Challenges we ran into

Main challenges were related to designing the system and writing smart contracts.

Accomplishments that we're proud of

  • we utilized different blockchain projects and made them work together (Chainlink and Quorum)
  • we wrote the smart contract from scratch which can facilitate fiat transactions

What we learned

  • Outlining simply the dapp logic
  • Outlining the dapp components
  • Choosing the stack
  • How to use private transactions on Quorum
  • How to increase trust in Chainlink nodes by using private transactions
  • Solidity and how to write a smart contract
  • Deploying local network with nodes
  • Deploying smart contracts
  • Integrating oracle and Paypal

What's next for Paperclip

  1. Partnerships (dapps, oracles, financial institutions)
  2. Funding (for development)
  3. Testnet deployment
  4. Mainnet deployment
  5. Growth

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