Musang Charity

Musang Charity

Decentralized crypto donations with zkTLS proof—ensuring transparency, eliminating fraud, and empowering global contributions across borders.

Created on 20th October 2024

Musang Charity

Musang Charity

Decentralized crypto donations with zkTLS proof—ensuring transparency, eliminating fraud, and empowering global contributions across borders.

Why are you participating for Based SEA?

We are participating in Based SEA because we are passionate about using technology to solve real-world problems, particularly in the realms of transparency and decentralization. As a team of software developers focused on blockchain and cryptography, this hackathon presents a unique opportunity for us to create impactful solutions and connect with like-minded individuals.

Our project, Musang Charity, directly addresses critical issues in traditional donation systems, such as fraud, lack of transparency, and cross-border limitations. By utilizing zkTLS technology, we ensure secure and verifiable donations in a decentralized manner, eliminating middlemen and fostering greater trust. This approach is especially relevant in Southeast Asia, where challenges like fraud and cross-border donations are prevalent.

Through our participation in Based SEA, we aim to further refine Musang Charity, learn from others, and contribute to the growing Southeast Asian tech ecosystem. We’re excited to receive feedback, collaborate with fellow innovators, and explore how our project can empower individuals to make a meaningful impact through transparent, decentralized giving.

This hackathon aligns perfectly with our vision of building technology solutions that create positive change, and we’re eager to contribute to that vision through Based SEA.

What challenges are you focusing on?

We are focusing on addressing key challenges in the donation and charity sector, particularly around fraud, transparency, and cross-border donations. Traditional donation systems often suffer from these issues, leading to mistrust and inefficiencies that hinder the potential of charitable giving. These are the core challenges that Musang Charity seeks to solve through our innovative use of blockchain and zkTLS technology.

Fraud and Misuse of Funds: In many traditional donation platforms, it’s difficult to verify whether the funds reach the intended recipients or if they are misused along the way. With zkTLS technology, Musang Charity ensures that each donation is verifiable, eliminating fraud and increasing trust in the system.

Lack of Transparency: Donors often struggle to understand how their contributions are being used. Financial reports are frequently delayed or incomplete. By using blockchain technology, we create an immutable and transparent record of all transactions, providing donors with clear visibility into how their money is spent.

Cross-Border Donation Limitations: Traditional donation platforms are often restricted by borders, exchange rates, and banking systems. Crypto donations, especially when combined with zkTLS proofs, enable seamless cross-border transfers without the need for intermediaries, empowering global giving.

Centralization of Donations: Most donation platforms are controlled by large organizations or intermediaries, limiting the ability of ordinary individuals to contribute directly. Musang Charity decentralizes the donation process, allowing anyone to participate and help those in need, bypassing traditional gatekeepers.

In summary, our focus is on revolutionizing the donation system by addressing these challenges with innovative, decentralized, and transparent technology. This approach not only increases the effectiveness of charitable giving but also empowers individuals to contribute more meaningfully.

How does your submission address this challenge?

Musang Charity directly addresses the challenges of fraud, transparency, cross-border donations, and centralization by leveraging zkTLS technology and a decentralized architecture to ensure secure, transparent, and global donations.

  1. Eliminating Fraud and Ensuring Transparency: Traditional donation systems often lack the transparency needed to verify if donations are being used properly. With zkTLS technology, Musang Charity ensures that each transaction is verifiable without compromising the privacy of the donor or the recipient. zkTLS proofs allow us to confirm that funds are being used as intended, without exposing sensitive data. This creates a trustless system where both donors and recipients can be confident in the integrity of the process.

  2. Enabling Cross-Border Donations: Traditional donation systems face challenges with cross-border transactions, including high fees, slow processing times, and exchange rate complexities. Musang Charity uses cryptocurrency (specifically USDC) to facilitate instant, low-cost donations across borders. By using blockchain technology, we eliminate the need for intermediaries, allowing donations to flow seamlessly across borders, regardless of local banking systems.

  3. Decentralizing the Donation Process: Most charity platforms are centralized, limiting who can participate and contribute. Musang Charity is a decentralized platform where anyone can participate as a donor or a maker (who helps purchase goods). By decentralizing the donation process, we empower ordinary people to contribute directly to those in need, bypassing traditional intermediaries.

In summary, Musang Charity addresses these challenges by using zkTLS and blockchain technology to create a transparent, decentralized, and cross-border donation system. This innovation not only tackles fraud and centralization but also empowers people to contribute more easily and effectively to charitable causes worldwide.

Challenges we ran into

One of the key technical challenges we encountered while building Musang Charity was proofing off-chain transactions onto the on-chain environment. In the traditional donation process, goods are purchased off-chain, and there’s often no easy way to prove that the donation is being used as intended without exposing sensitive data.

Specifically, we faced the difficulty of verifying that a maker had successfully purchased the goods from an online marketplace and that the invoice generated was valid. Simply relying on the maker to upload an invoice or provide evidence wouldn’t ensure transparency or prevent fraud. This created a risk that donors wouldn’t trust the platform or that the process could be exploited.
How We Overcame It

We solved this challenge using zkTLS technology. By integrating zkTLS, we can create zero-knowledge proofs of the off-chain transaction’s validity without revealing sensitive information. Here’s how it works:

  1. Invoice Submission: The maker submits the invoice of the purchase made from an online marketplace.
  2. zkTLS Proof Generation: The zkTLS protocol communicates with the marketplace and verifies the invoice’s authenticity without exposing any details of the transaction.
  3. On-Chain Proof: Once the proof is generated, it is fed into the blockchain, providing verifiable evidence that the transaction is legitimate and complete.

This approach ensures that the donation process remains secure, verifiable, and transparent. Donors can trust that their funds are being used correctly, and the system eliminates the need for centralized intermediaries.

By leveraging zkTLS, we created a solution that balances privacy with accountability, which was essential to the success of Musang Charity.

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