# Innosuisse Start-up Innovation Project Application

**Application Number:** 132.532 SIP-ICT
**Application Type:** Start-up Innovation Project
**Requested Funding:** CHF 840,000 (Total project: CHF 1,200,000 with partner contribution)

---

## 📋 Table of Contents

1. [Introduction](#1-introduction)
2. [Organizations and People](#2-organizations-and-people)
3. [Value Creation](#3-value-creation)
4. [Solution - Science-based Innovation](#4-solution---science-based-innovation)
5. [Project Setup](#5-project-setup)

---

## 1. Introduction

### Abstract

We develop blockchain-based access control integrating Swiss government digital ID (swiyu). Smart locks verify official identities, automating compliance while eliminating CHF 300K+ annual verification costs. CHF 840K Innosuisse funding (with CHF 360K partner contribution) supports 24-month research establishing Swiss leadership.

### Executive Summary

Organizations face dual challenges: outdated access control systems vulnerable to breaches (MGM's CHF 81.1M hack) and expensive manual compliance (CHF 5 - 25 per identification & documentation). Current solutions operate in isolation—NFC badges for buildings, paperwork for identity verification—creating security gaps and operational inefficiencies.

We develop blockchain-powered access control connecting to Switzerland's government digital ID (swiyu). Smart locks replace card readers while automatically verifying official identities. Banks get modern building security anD automated customer onboarding. Retail gets employee access and age verification. Healthcare gets staff authentication and credential checking.

The innovation: blockchain architecture enables decentralized operation eliminating single points of failure. Every access creates tamper-proof audit trails. Government ID integration provides official verification impossible with private solutions. Organizations save 30-60% on compliance costs while gaining unprecedented security transparency.

Market timing optimal: swiyu launches 2026, EU eIDAS 2.0 follows 2027. Switzerland gains 12-month first-mover advantage. The global digital identity market presents a substantial opportunity, valued at CHF 29.2-34.1 billion in 2024 and projected to reach CHF 124.9 billion by 2032 at 19.9% CAGR. The European segment represents CHF 8.1-8.9 billion currently, growing to CHF 24.3-28.4 billion by 2032 at 15-16% CAGR.

Team combines blockchain expertise (Fundel), Web3 development (Dierolf), hardware security (Pütz). Industry partnerships ensure practical deployment. CHF 1.2M total budget (CHF 840K Innosuisse, CHF 360K partner): 63% personnel, 20% equipment, 17% operations.

Investment establishes Swiss leadership in government-verified blockchain access, creating exportable technology generating decades of licensing revenue while solving immediate compliance challenges.

---

## 2. Organizations and People

**Simon Fundel - Project Lead**
Simon brings deep supply chain management expertise with a passion for "connecting the dots" across complex systems. His career-long focus on end-to-end process optimization naturally led him to blockchain technology, where he sees the solution to persistent industry challenges around data integrity and transparency. As a certified anti-money laundering specialist with regulatory compliance expertise, Simon ensures our project meets all legal requirements while maintaining technology neutrality focused on optimal outcomes.

His hands-on blockchain experience includes participation in Ethereum hackathons and attendance at protocol developer conferences worldwide. Simon's project management skills and process understanding keep the team focused while providing essential monitoring and reporting capabilities for stakeholders. His regulatory background and understanding of smart contracts as the "highest level of trust" make him ideally suited to guide this innovative project through both technical and compliance challenges.

**Frank Dierolf - Software Lead**
Frank's unique journey from biotechnology and technical orthopaedics to Web3 development creates the perfect bridge between physical and digital worlds essential for this project. His self-directed learning path through 3D printing, augmented reality, and web development culminated in specialized expertise in Web3 AR development and smart contract programming. His technical depth centers on JavaScript for full-stack development & deployment, and Rust for high-performance smart contract and system programming.

As a successful freelancer for five years, Frank excels at rapid prototyping and feasibility studies, consistently delivering complex projects from initial concept to working prototype. His full-stack capabilities span UI/UX design, frontend and backend development, API creation, Linux systems, and DevOps. Multiple hackathon wins in the Web3 space demonstrate his ability to innovate under pressure and deliver functional solutions, making him uniquely qualified to lead the technical development of our blockchain-IoT access control system.

**Dr. Felix Pütz - Hardware Lead**
Felix brings proven expertise in secure digital identity and smart mobility systems as Head of Business Unit Mobility & Smart City at LEGIC Identsystems AG. His deep understanding of hardware-level security implementations, particularly in multi-application smartcard technology and IoT device integration, provides essential technical foundation for our blockchain-IoT access control system.

With extensive experience in Self-Sovereign Identity (SSI) technologies and cryptographic hardware design, Felix bridges the critical gap between theoretical blockchain capabilities and practical physical implementation. His leadership in major projects like Switzerland's SwissPass integration—serving over 5 million citizens—demonstrates his ability to scale secure access solutions from prototype to nationwide deployment. As a founding member of the NFID Foundation and recognized thought leader, Felix ensures our hardware development meets industry standards while his academic appointment and industry partnerships provide direct pathways to commercial validation.

---

## 3. Value Creation

### 3.1 Business Model

#### 3.1.1 Value Proposition

Organizations face two expensive problems that connect: outdated access control systems and costly manual compliance processes. Most companies still use NFC badges for building access while spending millions verifying customer identities manually. Swiss banks demonstrate this perfectly—managing facilities holding CHF 8.39 trillion in assets with outdated access control while spending CHF 5 - 25 per manual customer identification & documentation.

Our blockchain-powered access control systems connect to Switzerland's government digital ID infrastructure (swiyu). Smart locks replace traditional card readers, people use phones with government-verified digital identities, and all access attempts record on tamper-proof blockchain ledgers. The same system opening doors automatically handles regulatory requirements like customer identity verification, age confirmation, and professional credential checking.

Banks get modern building security and automated customer onboarding from one platform. Retail stores get employee access control and automated age verification for restricted products. Healthcare facilities get staff authentication and patient credential verification. Organizations eliminate single points of failure through decentralized architecture while gaining transparent audit trails impossible to manipulate.

The hidden pain point lies in compliance documentation. Current systems maintain separate databases that cannot communicate, creating dangerous inconsistencies when permissions change. Our blockchain approach ensures all stakeholders receive updates simultaneously through consensus mechanisms, eliminating information asymmetries.

Benefits include 30-60% reduction in compliance costs (from CHF 5 - 25 to CHF 0.5 - 2 per verification), elimination of single points of failure, automatic regulatory documentation, and real-time permission synchronization across all access points. The government ID integration provides legal recognition and compliance frameworks that private solutions cannot match.

#### 3.1.2 Customer Segments

**Market Size and Growth:**
The global digital identity market presents a substantial opportunity, valued at CHF 29.2-34.1 billion in 2024 and projected to reach CHF 124.9 billion by 2032 at 19.9% CAGR. The European segment represents CHF 8.1-8.9 billion currently, growing to CHF 24.3-28.4 billion by 2032 at 15-16% CAGR. Within this, the blockchain identity management segment shows exceptional growth at 90%+ CAGR, expanding from CHF 1.46 billion (2024) to potentially CHF 28.4 billion by 2028.

Switzerland's digital identity market, estimated at CHF 300-400 million in 2024, is projected to reach CHF 1.0-1.3 billion by 2032, representing approximately 1% of the global market but with premium positioning and higher margins.
Swiss market indicators confirm substantial opportunity with 271 authorized banks managing CHF 8.39 trillion in assets, 278 hospitals, and 48,000+ retailers all requiring identity verification and access control solutions. Government studies project CHF 3 billion in annual economic benefits from digital identity adoption starting 2030, validating the market potential.

| Market | 2024 | 2032 | CAGR | Growth Multiple |
| ------------ | --------------------- | --------------------- | ------ | --------------- |
| **Swiss** | CHF 300-400 million | CHF 1.0-1.3 billion | 16-18% | 3.3x |
| **European** | CHF 8.1-8.9 billion | CHF 24.3-28.4 billion | 15-16% | 3.2x |
| **Global** | CHF 29.2-34.1 billion | CHF 124.9 billion | 19.9% | 4.3x |

**Business Type and Value Chain:**
We operate B2B, targeting enterprises requiring professional-grade security with compliance automation. Our position spans technology provider (blockchain protocols), system integrator (connecting government ID with access control), and solution enabler (empowering partners to offer integrated services).

**Direct Beneficiaries:**

- Swiss banks (271 authorized institutions per FINMA 2024) requiring secure facilities and customer verification
- Age-restricted retail (50,000+ locations) needing employee access and age verification
- Healthcare networks (280+ hospitals) requiring staff authentication and credential verification
- Government agencies (26 cantons, 2,148 municipalities) needing inter-organizational access
- Professional services requiring license verification and client authentication

**Growth Plan for Swiss Society:**
Years 1-2: Establish with 10-20 innovation leaders demonstrating compliance savings
Years 3-4: Expand through industry partnerships reaching 100-200 implementations
Years 5+: Achieve standard status with 1,000+ deployments benefiting millions through improved security, privacy, and reduced compliance costs

**Scalability:**
Technology scales through network effects—value increases with adoption. European expansion leverages eIDAS 2.0 compatibility reaching 450 million EU citizens. Software licensing model enables rapid scaling without proportional cost increases.

#### 3.1.3 Customer Communication & Reach

**Communication Channels:**
Direct engagement targets decision-makers through compliance cost reduction demonstrations. We approach CFOs with ROI calculators showing 30-60% verification cost savings, CTOs with technical whitepapers on blockchain security benefits, and compliance officers with automated documentation capabilities.

Industry partnerships multiply reach—access control manufacturers integrate our technology into existing product lines, system integrators include blockchain options in enterprise proposals, and government initiatives promote swiyu-compatible solutions.

**Customer Interests and Commitment:**
Customers care about compliance cost reduction, not blockchain technology. Banks facing CHF 300,000+ annual verification costs immediately understand value propositions. Retail venues paying CHF 4,728-9,457 per age verification failure recognize automation benefits.

Early adopters already express commitment through collaboration agreements. Government agencies actively seek swiyu integration partners. Industry leaders recognize first-mover advantages in compliance automation.

**Long-term Relationship Management:**
Relationships evolve from hardware sales to subscription services as customers discover broader applications. Initial access control deployments reveal compliance opportunities, leading to platform expansion across operations.

We maintain engagement through continuous value creation—regular platform updates based on regulatory changes, new compliance automation features, and expansion into additional verification types. Customer success teams ensure organizations achieve documented cost savings, creating reference cases for broader market adoption.

#### 3.1.4 Financial Model

**Revenue Streams:**
Stage 1 - Hardware Sales (CHF 25,000-75,000 per installation): Smart access control systems replacing outdated card readers, creating blockchain audit trails

Stage 2 - Government Integration Premium (CHF 15,000-50,000 additional): Enhanced capabilities through Swiss eID connection enabling compliance automation

Stage 3 - Subscription Services (CHF 25,000-400,000 annually): Ongoing compliance automation, regulatory updates, and platform expansion

The model scales naturally—hardware sales fund deployment, integration creates competitive advantages, subscriptions generate recurring revenue from documented savings.

**Pricing Strategy and Willingness to Pay:**
Pricing reflects value creation rather than technology costs. Manual KYC processesing consuming 15-25 hours per customer at CHF 40-122 per hour costs create high compliance expenses. Organizations achieve 30-60% cost savings per KYC review with 10-18 month payback periods through operational savings and compliance risk reduction.

**Cost Structure:**
Research phase: CHF 756,000 personnel (3 researchers, partially partner-funded), CHF 240,000 equipment/infrastructure, CHF 204,000 operations/legal
Post-research: Minimal ongoing costs due to blockchain's decentralized nature—no central infrastructure maintenance, scalability without proportional increases

**Path to Self-Sustainability:**
Years 1-2: Limited research revenue CHF 50,000-150,000 from early adopters
Year 3: CHF 500,000-1,000,000 from 5-10 hardware installations with integration
Year 4: CHF 1,000,000-2,000,000 adding 10-20 subscription customers
Year 5+: CHF 2,000,000-5,000,000 as compliance savings drive adoption
Break-even Year 4 through documented value creation rather than technology evangelism

### 3.2 Implementation

#### 3.2.1 Competitive Advantages

**Market Position and USP:**
We uniquely combine blockchain access control with government identity verification. Traditional providers (HID Global, ASSA ABLOY) offer centralized systems vulnerable to breaches. Blockchain startups (Civic, SelfKey) lack practical deployment paths. We bridge both gaps through government partnership and industry collaboration.

Our Unique Selling Proposition: First platform integrating Swiss government digital ID with blockchain access control, enabling simultaneous physical security and compliance automation through one system.

**Differentiation and Competitive Advantages:**
Government partnership provides legal recognition competitors cannot replicate. Swiss eID integration creates compliance capabilities private solutions lack. Industry partnerships ensure practical deployment while blockchain foundation provides superior security architecture.

Technical advantages include proprietary integration protocols for government ID systems, multi-blockchain platform expertise optimizing performance/cost, and hardware-blockchain integration knowledge rare globally.

**Barriers and Market Dynamics:**
We build barriers through network effects (value increases with adoption), government relationships (exclusive swiyu early access), and switching costs (deep integration creates dependencies).

Market dynamics favor our approach—CHF 5.56 billion in total GDPR fines since 2018 (with 2024 fines at CHF 1.13 billion) drive compliance automation, digital transformation budgets prioritize automated solutions, and Web3 adoption creates blockchain acceptance. Switzerland's privacy focus attracts security-conscious organizations.

**Defense Strategy:**
Continuous innovation maintains leadership through ongoing government collaboration, industry partnership expansion, and standard development ensuring our protocols become norms. First-mover advantage with swiyu creates 12-month head start before European competition emerges.

#### 3.2.2 Implementation Roadmap

**Commercialization Strategy:**
Phase 1 (Research): Validate with 5-10 innovation leaders including banks needing compliance automation, retailers requiring age verification, and government agencies seeking transparency

Phase 2 (Post-research): Scale through channel partners—access control manufacturers add blockchain options, system integrators include in enterprise deployments

Phase 3 (Market standard): Achieve adoption through proven ROI—organizations see competitors saving millions, creating organic demand

**Early Market Traction:**
Multiple Swiss banks expressing interest in compliance automation pilots. Government agencies committed to swiyu integration exploration. Retail chains investigating age verification automation. Industry partners signed collaboration agreements.

**Market Entry Barriers and Solutions:**
Conservative security markets resist new technology—we demonstrate gradual integration maintaining existing systems while adding blockchain benefits. Complexity concerns addressed through intuitive interfaces hiding blockchain details. Regulatory uncertainty mitigated through Swiss stability and government partnership.

**Timing Advantages:**
Optimal convergence of swiyu launching 2026, eIDAS 2.0 mandatory 2027, blockchain technology maturity for enterprise deployment, and mounting compliance costs driving automation demand.

**Scalability:**
Business model scales through software licensing (minimal marginal costs), network effects (increasing value), and geographic expansion (eIDAS 2.0 compatibility). Revenue multiplies through customer quantity, transaction volume, and service expansion without proportional cost increases.

#### 3.2.3 Financial Implementation Aspects

**Revenue Projections:**
Year 1-2 (Research): CHF 50,000-150,000 limited prototype sales
Year 3: CHF 500,000-1,000,000 from 5-10 installations
Year 4: CHF 1,000,000-2,000,000 adding subscriptions
Year 5: CHF 2,000,000-5,000,000 market acceleration
Years 5+: CHF 5,000,000-50,000,000 through European expansion and transaction fees

NPV with Innosuisse funding: CHF 5-10 million over 5 years
NPV without funding: Negative (project unviable without research investment)

**Break-even Analysis:**
Fixed costs post-research: CHF 600,000 annually (team, infrastructure)
Variable costs: Minimal due to software model
Break-even: 8-10 customers at CHF 75,000 average (Year 4)
Operating leverage improves dramatically beyond break-even

**Market Potential:**
Swiss addressable: CHF 1.5 billion organizations saving potential
Realistic capture: 5% = CHF 75 million annual revenue
European expansion: 10-20x multiplier through eIDAS 2.0
Global opportunity: CHF 145.3 billion digital identity market by 2032

**Funding Strategy:**
Current: CHF 840,000 Innosuisse + CHF 360,000 partner contribution for research foundation
Year 3: CHF 1-2 million Series A for commercialization
Year 5: CHF 5-10 million Series B for European expansion
Long-term: Self-funded through operating cash flow

**Evidence of Investor Interest:**
Blockchain infrastructure investments reached CHF 8.8 billion in 2022. Swiss investors specifically interested in government-partnership opportunities. Strategic investors (dormakaba, LEGIC) exploring collaboration. Banks recognizing vendor potential for compliance solutions.

### 3.3 Sustainable Development Goals Impact

| SDG # | Goal | Impact Level | Description |
| ------ | --------------------------------------- | ------------ | ------------------------------------------------------------------------ |
| 9 | Industry, innovation and infrastructure | **High** | Building blockchain infrastructure for secure access control |
| 11 | Sustainable cities | **High** | Enabling smart city access management and efficient infrastructure |
| 16 | Peace, justice and institutions | **High** | Transparent audit trails supporting justice and institutional governance |
| 8 | Decent work and economic growth | **Medium** | Creating high-value jobs and enabling economic efficiency |
| 10 | Reduced inequalities | **Medium** | Democratizing access to secure identity verification |
| 17 | Partnerships for the goals | **Medium** | Fostering public-private partnerships through government integration |
| 5 | Gender equality | **Low** | Equal access to technology regardless of gender |
| 12 | Responsible consumption | **Low** | Reducing physical access cards through digital solutions |
| Others | Various | **None** | No direct impact on SDGs 1,2,3,4,6,7,13,14,15 |

---

## 4. Solution - Science-based Innovation

### 4.1 State of the Art

#### 4.1.1 Research Achievements & References

Current access control research reveals critical limitations our innovation addresses:

**Centralized Vulnerability Research**: CyberArk's 2024 Identity Security Threat Landscape Report reveals 93% of organizations experienced two or more identity-related breaches in the past year, with 16% of all breaches caused by stolen or compromised credentials (IBM Cost of Data Breach Report 2024). Current systems show 74% of passwords in breach databases are reused across applications (SpyCloud 2024), with credential-based breaches taking 292 days average to identify and contain (IBM 2024). NIST SP 800-162 defines attribute-based access control (ABAC) but implementations remain centralized with single points of failure.

**Blockchain Identity Attempts**: Recent blockchain identity research, including Saha et al.'s 2023 IEEE study on private blockchain access control, demonstrates 89.3% reduction in authentication delays but still lacks widespread physical access integration. Hyperledger Indy provides frameworks without real-world deployment. European Blockchain Services Infrastructure (EBSI) focuses on document verification, not access control. Commercial failures like uPort and REMME demonstrate risks of theoretical approaches without practical implementation paths.

**IoT Security Architecture**: Palo Alto Networks Unit 42 (2024) finds 57% of IoT devices vulnerable to medium- or high-severity attacks, with 98% of IoT traffic remaining unencrypted, with average breach costs reaching CHF 3.96 million in 2024. While theoretical proposals exist, practical implementations like STMicroelectronics' 2024 blockchain-compatible NFC tags now enable real-world blockchain-IoT integration. Nearly 80% of commercial keycards remain vulnerable to hacking (Kisi 2024), with 3 million hotel doors worldwide exposed to MIFARE Classic backdoors.

**Key Performance Gaps**:

- Manual identity verification: CHF 5-25 per customer (Swiss Post Yellow Identification Service: CHF 25.00), with manual KYC consuming 15-25 hours per customer
- Access updates: IAM policy changes take ~2 minutes for propagation (Google Cloud IAM 2024)
- Security incidents: CHF 3.96 million average breach cost (2024 IBM Cost of Data Breach Report), with healthcare reaching CHF 7.92 million

Our research addresses these quantified gaps through blockchain architecture eliminating central vulnerabilities while integrating government identity verification for automated compliance.

#### 4.1.2 Readiness Level

**Current TRL: 3** (Needs Validation)

- Analytical and experimental critical functions validated
- Proof-of-concept demonstrated in laboratory
- Component validation completed separately

**Target TRL: 8** (First of a Kind Commercial System)

- Commercial prototype completed and qualified
- System proven in operational environment
- Ready for deployment and commercialization

**Progression Path:**

- Milestone 1: TRL 3→4 (Small Scale Prototype)
- Milestone 2: TRL 4→5 (Large Scale Prototype with eID)
- Milestone 3: TRL 5→6-7 (Prototype System Integration)
- Milestone 4: TRL 6-7→8 (Commercial System)

#### 4.1.3 Existing Solutions Analysis

| Solution | Provider | Limitations |
| -------------------------- | ---------------------- | --------------------------------------------------------------------------------------------------------------------------- |
| **Centralized Web Access** | HID Global, ASSA ABLOY | Single point of failure, requires constant internet connectivity, vulnerable to server attacks, no transparent audit trails |
| **NFC Card Systems** | LEGIC, Mifare | Physical card distribution required, cannot update remotely, no automatic documentation, isolated from other systems |
| **Biometric Systems** | Suprema, ZKTeco | Privacy concerns with biometric storage, high implementation costs, limited interoperability, centralized databases |
| **Mobile Credentials** | Apple Wallet, Google | Platform dependency, proprietary protocols, limited enterprise integration, privacy concerns with tech giants |
| **Blockchain Identity** | Civic, SelfKey | Limited physical access integration, Civic has production deployments but lacks government backing, narrow market adoption |

### 4.2 R&D Activities & Novelty

#### 4.2.1 Market Readiness Assessment

Current solutions cannot meet emerging requirements:

**Transparency Requirements**: New regulations demand comprehensive audit trails. Centralized systems cannot provide tamper-proof documentation without vulnerability to selective reporting or manipulation.

**Compliance Automation Needs**: Identification & documenation costs CHF 5 - 25 per customer become unsustainable as digital competitors achieve sub-2-second automated processing. Current systems lack government identity integration capabilities.

**Interoperability Demands**: Organizations require seamless access sharing across entities. Current isolated databases maintaining separate records cannot achieve this without complete architectural transformation.

**Privacy Regulations**: GDPR and revDSG require privacy-by-design impossible with current centralized biometric storage and access logs.

Our blockchain solution with government ID integration addresses each limitation through fundamental innovation rather than incremental improvement.

#### 4.2.2 Novelty Comparison

| Aspect | Your Solution | Existing Solutions | Degree of Novelty |
| ----------------------------- | ------------------------------------------------- | ---------------------------------------------- | ------------------------------------------------ |
| **Architecture** | Fully decentralized blockchain-based | Centralized servers or isolated systems | **High** - First practical implementation |
| **Government ID Integration** | Direct swiyu connection for official verification | Proprietary identity systems | **High** - Unprecedented globally |
| **Compliance Automation** | Automatic verification reducing costs 30-60% | Identification & documenation costs CHF 5 - 25 | **High** - Revolutionary efficiency |
| **Audit Capability** | Automatic, tamper-proof on public ledger | Manual logs in private databases | **High** - Fundamental transparency shift |
| **Device Autonomy** | Smart contract-driven independent operation | Constant server connectivity required | **High** - Enables new operational models |
| **Permission Updates** | Real-time consensus across all devices | Manual sync taking 24-48 hours | **Medium** - Significant improvement |
| **Privacy Approach** | Selective disclosure and zero-knowledge proofs | Full data exposure or no verification | **High** - Advanced cryptographic implementation |
| **Migration Path** | Gradual integration maintaining existing systems | Complete replacement required | **Medium** - Practical innovation |

### 4.3 Methodology & Objectives

**Quantitative Objectives:**

- Achieve sub-2 second access verification including blockchain confirmation
- Reduce compliance costs by 30-60% (from CHF 5 - 25 to CHF 0.5 - 2)
- Support 10,000+ concurrent users without performance degradation
- Maintain 99.9% uptime through decentralized architecture
- Process 1 million daily access events with complete audit trails
- Achieve TRL 8 commercial readiness within 24 months
- Demonstrate CHF 300,000+ annual savings for enterprise customers

**Qualitative Objectives:**

- Establish Switzerland as global leader in government-verified blockchain access
- Create industry standards adopted internationally
- Develop migration frameworks enabling gradual adoption
- Build ecosystem of partners and developers
- Generate patent portfolio protecting Swiss innovation
- Validate government identity integration with blockchain technology

**Research Methodology:**
Iterative development with user validation at each milestone. Technology development through prototyping, platform evaluation comparing blockchains, user testing with 5-15 participants per phase, integration testing with partner systems, security assessment through penetration testing, and commercial validation through pilot deployments.

Each milestone includes specific validation with potential customers—banks for compliance automation, retailers for age verification, government for inter-organizational access. Success metrics include documented cost savings, processing time improvements, and user satisfaction scores.

### 4.4 Preliminary Work Completed

**Technical Foundation Established:**

- Proof-of-concept smart contracts for access control logic developed
- NFC communication protocols tested with blockchain wallet integration
- ESP32 capabilities evaluated for blockchain node operation
- Multiple blockchain platforms analyzed for IoT suitability (Ethereum, Polkadot, Robonomics)
- Government eID technical specifications reviewed with swiyu team

**Market Validation Confirmed:**

- Swiss banks expressed interest in compliance automation pilots
- government agencies committed to collaboration during research
- retail chains investigating age verification automation
- Industry partners (access control manufacturers) signed collaboration agreements
- Regulatory bodies supportive of innovation in identity verification

**Team Expertise Demonstrated:**

- Simon Fundel: Lead 4+ Teams from Enterprise to Startup
- Frank Dierolf: Shipped 5+ Web3 projects, won 15+ blockchain hackathons
- Dr. Felix Pütz: Deployed SwissPass serving 5 million citizens, founded NFID Foundation

**Ecosystem Relationships Developed:**

- Partnership agreements with Swiss access control manufacturers
- Technical collaboration with swiyu development team
- Relationships with blockchain platform providers
- Academic partnerships for research validation

This preliminary work reduces project risk and ensures rapid progress from research commencement.

### 4.5 IPR Strategy

#### 4.5.1 Knowledge Protection

| IP Type | Status | Strategy |
| ------------------------------------- | --------------- | --------------------------------------------------- |
| **Government ID Integration Patents** | To be filed | Novel methods combining blockchain with swiyu |
| **Compliance Automation Patents** | To be developed | Automated verification using government credentials |
| **System Architecture Patents** | To be created | Blockchain-physical access integration |
| **Migration Framework Patents** | To be designed | Legacy system transition methods |
| **Trade Secrets** | Ongoing | Implementation optimizations |
| **Open Source Contributions** | Planned | Basic protocols for ecosystem development |

#### 4.5.2 Freedom to Operate

**Confirmed Operating Freedom:**

- Blockchain protocols operate under open-source licenses
- Swiss eID uses open standards (OpenID4VP, W3C Verifiable Credentials)
- Hardware components available through standard commercial licenses
- NFC patents addressed through established licensing programs

**Risk Mitigation:**

- CHF 50,000 allocated for IP clearance
- Legal review at each milestone
- Alternative implementation paths identified

#### 4.5.3 Regulatory Requirements

| Requirement Type | Issuing Authority | Status | Action Required |
| ------------------------------- | --------------------- | --------------------- | --------------------------------------- |
| **Data Protection Compliance** | Swiss FDPIC / EU GDPR | Design phase | Privacy-by-design implementation |
| **Swiss eID Compliance** | Swiss Government | Required | Technical specification adherence |
| **CE Marking** | EU Commission | Required for hardware | Plan certification |
| **Cybersecurity Certification** | Swiss NCSC | Recommended | Voluntary certification for credibility |
| **eIDAS Recognition** | EU Commission | Future opportunity | Monitor qualified ledger standards |

---

## 5. Project Setup

### 5.1 Project Plan

**Duration:** 24 months (January 2026 - December 2027)

#### Key Milestones

| Milestone | Start Date | End Date | Duration | Key Deliverables |
| ---------------------------- | ---------- | -------- | -------- | ----------------------------------------------------------------- |
| **M1: Foundation Prototype** | Jan 2026 | Jun 2026 | 6 months | Functional prototype, feasibility report, demonstration video |
| **M2: eID Integration** | Jul 2026 | Dec 2026 | 6 months | Enhanced prototype with Swiss eID, integration report |
| **M3: System Integration** | Jan 2027 | Jun 2027 | 6 months | Integrated system with existing infrastructure, business analysis |
| **M4: Migration Strategy** | Jul 2027 | Dec 2027 | 6 months | Kind of commercial system, migration framework, final report |

### 5.2 Risk Management

**Risk Assessment Matrix:**

| Risk | Probability | Impact | Mitigation Strategy |
| ------------------------ | ----------- | ------ | ---------------------------------------------------------------------- |
| **Regulatory changes** | Medium | High | Swiss stable framework, compliance monitoring, flexible architecture |
| **Market adoption** | Medium | High | Target innovation leaders with clear ROI, gradual integration approach |
| **Technical challenges** | Low | Medium | Multi-platform testing, experienced team, partner support |
| **Timeline delays** | Low | Low | Six-month milestones provide flexibility, parallel development paths |
| **IP conflicts** | Very Low | Medium | Proactive clearance, alternative designs, legal budget allocated |

**Monitoring Approach:**

- Quarterly risk reviews with full team and partners
- Monthly progress assessments against milestones
- Continuous market and regulatory monitoring
- Regular stakeholder communication

### 5.3 Project Management

**Team Structure:**

- **Project Lead** (Simon Fundel): Overall coordination, stakeholder management, regulatory compliance
- **Software Lead** (Frank Dierolf): Technical development, prototype creation, testing
- **Hardware Lead** (Dr. Felix Pütz): Hardware integration, security implementation, industry liaison

**Resource Allocation:**

- Total Planned Hours: 12,096 (3 FTE × 2,016 hours/year × 2 years)
- Research & Development: 85% (10,282 hours)
- Project Management: 10% (1,210 hours)
- Administration: 5% (604 hours)

**Reporting Structure:**

- Monthly internal progress reviews
- Quarterly reports to Innosuisse
- Milestone completion assessments with external validation
- Annual stakeholder presentation

### 5.4 Project Budget

#### Financial Overview

| Category | Year 1 | Year 2 | Total | Percentage |
| ------------------------------ | ----------- | ----------- | ----------------- | ---------- |
| **Salary Costs** | CHF 378,000 | CHF 378,000 | CHF 756,000 | 63% |
| **Equipment & Infrastructure** | CHF 150,000 | CHF 90,000 | CHF 240,000 | 20% |
| **Operations & Travel** | CHF 51,000 | CHF 51,000 | CHF 102,000 | 8.5% |
| **Legal & Administrative** | CHF 51,000 | CHF 51,000 | CHF 102,000 | 8.5% |
| **Total Project Budget** | CHF 630,000 | CHF 570,000 | **CHF 1,200,000** | 100% |

##### Funding Sources

| Source | Amount | Percentage | Status |
| ------------------------ | ----------------- | ---------- | --------- |
| **Innosuisse Grant** | **CHF 840,000** | **70%** | Applied |
| **Partner Contribution** | **CHF 360,000** | **30%** | Committed |
| **Total Funding** | **CHF 1,200,000** | **100%** | |

_Note: Partner contribution includes in-kind support (personnel, infrastructure) valued at CHF 15,000/month over 24 months._

#### Salary Costs Breakdown

| Position | Annual Gross | Social Costs (20%) | Total Annual | 24 Months |
| ------------- | ------------ | ------------------ | --------------- | --------------- |
| Project Lead | CHF 105,000 | CHF 21,000 | CHF 126,000 | CHF 252,000 |
| Software Lead | CHF 105,000 | CHF 21,000 | CHF 126,000 | CHF 252,000 |
| Hardware Lead | CHF 105,000 | CHF 21,000 | CHF 126,000 | CHF 252,000 |
| **Total** | | | **CHF 378,000** | **CHF 756,000** |

#### Equipment & Infrastructure Breakdown

| Item | Purpose | Amount |
| ------------------------ | ------------------------------------- | --------------- |
| IoT Development Kits | ESP32 boards, NFC readers, actuators | CHF 50,000 |
| Computing Infrastructure | Blockchain nodes, development servers | CHF 80,000 |
| Software Licenses | Development tools, security testing | CHF 40,000 |
| eID Integration Testing | Identity verification infrastructure | CHF 40,000 |
| Lab Equipment | Testing and measurement tools | CHF 30,000 |
| **Total** | | **CHF 240,000** |