Crystal Intelligence, a European blockchain intelligence firm, proposes integrating Polkadot into its blockchain intelligence services. The goal is to enhance the security, transparency, and regulatory compliance of Polkadot's ecosystem. Crystal&rsquo;s solutions include real-time transaction monitoring, data analytics, and compliance tools across key Polkadot parachains.
The total requested budget is USD 1,375,000. Please view the full proposal <a href="https://docs.google.com/document/d/1qcf-ucfxwcgHkZkip0hZ0NQAKLOuz0CbtIJmLZpY2zo/edit?tab=t.0">here</a>.
We've seen more than a few recent proposals, kicked off by the ambitiously priced Chainalysis proposal. Since then we&rsquo;ve seen proposals built by similar firms, including Scorechain, and Global Ledger, as well as a more community native proposal by Submerge which succeeded. However, Giotto makes a valid point about Submerge&rsquo;s success, there is a difference between &lsquo;tooling&rsquo; and adoption. Tools and data analytics cover are only the basis for inclusion in this category. The value add that we seek to bring is additive to the ecosystem&rsquo;s business development goals. Crystal currently works with International Law Enforcement, the Banking Sector, International Organisations such as the ECB, and the UNODC. This calibre of organisation seeks not only &lsquo;data&rsquo; but the ability to consume the data in a way that is native to their workflow, and to have a level of trust in the data (created only through structured data gathering and presentation).
Here is a breakdown of the key elements of the proposal.
Key Benefits:
<ol>
<li>Enhanced Security and Transparency: Tools to detect illicit activities in Polkadot's ecosystem.</li>
<li>Regulatory Compliance: Support for compliance efforts, improving institutional adoption.</li>
<li>Institutional Adoption: One year of free access to Crystal&rsquo;s tools for key Polkadot participants to encourage institutional use.</li>
<li>Strategic Impact: Strengthens Polkadot&rsquo;s position as a leader in decentralized governance by integrating advanced blockchain intelligence.</li>
</ol>
The proposal outlines three core pillars:
<ol>
<li>Blockchain Intelligence: Monitoring and analyzing Polkadot transactions using a combination of traditional methods, OSINT (Open Source Intelligence), and HUMINT (Human Intelligence) for identifying illicit activities.</li>
<li>Marketing &amp; Business Development: Efforts to improve regulatory alignment and educate participants about compliance, reinforcing Polkadot's brand reputation.</li>
<li>Crystal Expert Integration: Technical integration of Polkadot with Crystal&rsquo;s existing tools, including scalable infrastructure and real-time data synchronization for improved transaction monitoring. Challenges and Solutions:</li>
</ol>
Polylithic Design: Polkadot&rsquo;s parachain system requires Crystal to restructure its architecture to support multiple interconnected chains. Infrastructure &amp; Data
Synchronization: Crystal will maintain real-time data across numerous parachains, adapting to Polkadot&rsquo;s evolving architecture and updates.
Regulatory Challenges: Crystal will aid Polkadot in staying compliant with rapidly evolving global regulations, benefiting institutional users.
Timeline &amp; Milestones: The project spans 12-18 months, with the integration of Polkadot into Crystal&rsquo;s systems being completed in phases. Key deliverables include: &middot; Initial integration with compliance checks (6 months). &middot; Training and intelligence gathering for key partners (6 months). &middot; Complete support for case management, visualization tools, and further integration (12 months &mdash; not necessarily consecutive).
Budget Justification: The requested budget covers development costs, infrastructure, intelligence services, and ongoing support. Each milestone aligns with deliverables to ensure transparency and maximize returns on investment.
This proposal positions Polkadot as a trusted, compliant, and secure ecosystem for institutions, thereby driving broader adoption while ensuring long-term scalability and security.

Propose and approve a spend of treasury funds.

## Dispatch Origin

Must be [`Config::SpendOrigin`] with the `Success` value being at least
`amount` of `asset_kind` in the native asset. The amount of `asset_kind` is converted
for assertion using the [`Config::BalanceConverter`].

## Details

Create an approved spend for transferring a specific `amount` of `asset_kind` to a
designated beneficiary. The spend must be claimed using the `payout` dispatchable within
the [`Config::PayoutPeriod`].

### Parameters
- `asset_kind`: An indicator of the specific asset class to be spent.
- `amount`: The amount to be transferred from the treasury to the `beneficiary`.
- `beneficiary`: The beneficiary of the spend.
- `valid_from`: The block number from which the spend can be claimed. It can refer to
  the past if the resulting spend has not yet expired according to the
  [`Config::PayoutPeriod`]. If `None`, the spend can be claimed immediately after
  approval.

## Events

Emits [`Event::AssetSpendApproved`] if successful.

- **Problem Statement:** Crystal Intelligence aims to integrate Polkadot into its blockchain intelligence services to enhance security, transparency, and regulatory compliance.
- **Significance:** Enhancing security, transparency, and regulatory compliance in Polkadot's ecosystem is crucial for institutional adoption and strengthening Polkadot's position in decentralized governance.
- **Proposed Solution:** Crystal Intelligence will provide real-time transaction monitoring, data analytics, and compliance tools across key Polkadot parachains.
- **Expected Outcomes:** The integration is expected to offer enhanced security, regulatory compliance support, one year of free access to Crystal's tools for key Polkadot participants, and strengthen Polkadot's position as a leader in decentralized governance.

#1272 Crystal Intelligence Blockchain Intelligence Proposal

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