The problem IPOtrust solves

IPOTrust addresses critical challenges in the traditional IPO (Initial Public Offering) allocation process, which often lacks transparency and is susceptible to manipulation. By leveraging blockchain technology, IPOTrust ensures:

• Fairness: A verifiable, tamper-proof lottery system for share allocation, eliminating biases.
• Transparency: All stakeholders (SEBI, registrars, applicants) can audit the process on-chain.
• Privacy: Applicant identities (DMAT IDs) are protected using SHA-256 hashing, with only hashes stored on-chain.
• Efficiency: Automates the allotment process via smart contracts, reducing manual errors and delays.

Challenges I ran into

1. Multi-Party Randomness Generation

   • Issue: Ensuring unbiased randomness for the lottery required inputs from multiple registrars, but coordinating this securely was complex.
   • Solution: Implemented a commit-reveal scheme where registrars submit seeds in two phases (hidden commit followed by reveal), preventing manipulation.

2. Privacy vs. Verifiability

   • Issue: Storing raw DMAT IDs on-chain would compromise privacy, while hashing would make verification difficult for applicants.
   • Solution: Used SHA-256 hashing for on-chain storage, with a secure off-chain backend to map hashes to DMAT IDs. Applicants verify inclusion by checking their hashed ID on Etherscan.

3. Gas Costs for Large Datasets

   • Issue: Uploading thousands of applicant hashes incurred high gas fees.
   • Solution: Optimised contract logic to batch hashes and used Merkle trees for efficient verification, reducing costs.

4. Regulatory Compliance

   • Issue: Aligning the smart contract logic with SEBI’s IPO regulations required iterative feedback.
   • Solution: Collaborated with legal advisors to ensure the contract met compliance standards while maintaining decentralisation.