Formulate Hypothesis: Problem Statement

Objective

Develop an initial thesis or problem statement based on your research and derived insights.

Building the Hypothesis

Based on Our Research

Review of Ground Truth Findings:

Nigeria’s informal economy is large, cash-driven, and unstructured
Traders, drivers, artisans, and gig workers lack digital identity and verifiable financial history
Cash-based payments enable corruption, ghost collectors, and revenue leakages
Lack of transparent payment records prevents access to microloans, grants, and insurance
Aid distribution often fails due to poor identity verification and non-transparent channels

Review:

Formulated Insights

Key Insights that Inform Our Hypothesis:

Lack of digital identity is the root barrier preventing access to credit, social benefits, and formal financial systems
Cash-based payment processes across markets and transport systems enable corruption and revenue loss due to zero transparency
Communities with no verifiable payment or identity history are systematically excluded from financial opportunities and relief programs

Problem Statement

The Problem

Millions of Nigerians in the informal economy cannot access financial services or transparent public services because they lack digital identity and traceable payment records, resulting in widespread corruption and exclusion.

Target audience: Traders, drivers, artisans, gig workers, and low-income citizens in the informal economy

Geographic scope: Nigeria (nationwide), especially markets, transport unions, cooperatives, and underserved communities

Scale: Over 80 million people working informally with no digital identity, income verification, or verifiable financial footprint

Final Problem Statement

Nigeria’s informal economy lacks a transparent, identity-linked payment and verification system, leaving millions without access to financial services, while enabling corruption, revenue leakages, and exclusion from essential government and NGO programs.

Hypothesis Statement

Our Hypothesis

We believe that citizens in Nigeria’s informal economy face financial exclusion, opaque payment processes, and lack of access to loans/relief because they have no decentralized identity or verifiable financial history. And if we introduce a Cardano-based digital identity and payment verification system (CivicChain) then citizens will gain transparent financial records and access to microloans, digital payments, and verifiable credentials, which will result in greater financial inclusion, reduced corruption, and more transparent community revenue systems.

Example

We believe that informal workers across Nigeria face exclusion from loans, grants, and transparent public services because their payments and identities are not digitally verifiable, and if we implement CivicChain (a Cardano-based DID and payment verification platform) then they will gain provable financial histories and transparent revenue processes, which will result in increased access to credit, reduced corruption, and more efficient aid distribution.

Assumptions to Test

Assumption 1:

Informal workers are willing to adopt digital ID systems.

How to test: Short surveys, interviews, prototype demonstrations
Risk if wrong: Low adoption could limit platform impact

Assumption 2:

Local authorities and cooperatives will accept DID-based payments and verification.

How to test: Meetings with market unions and local government revenue officers
Risk if wrong: Integration with existing systems becomes slow or blocked

Assumption 3:

Blockchain-based receipts and metadata will be trusted by users.

How to test: User testing of QR verification and transaction confirmation
Risk if wrong: System may require additional education and UX refinement

Success Criteria

Quantitative Metrics

70% of users successfully complete DID onboarding
At least 200 recorded transactions within pilot testing
60% of tested users report improved access to financial services

Qualitative Indicators

Users report feeling safer with digital receipts versus cash payments
Officers and auditors confirm reduced ambiguity in revenue tracking
Cooperatives show interest in issuing verifiable credentials

Constraints & Limitations

Known Constraints

Time: Hackathon deadline limits the depth of on-chain integration
Resources: No dedicated Cardano expert; relying on the team lead’s expertise
Technical: Limited ability to deploy advanced smart contracts within a timeframe
Regulatory: Must avoid creating systems that conflict with taxation laws or KYC frameworks

Scope Boundaries (Out of Scope)

Full-scale multi-continent deployment
Complex smart contracts for lending or staking
Integration with banks or regulated financial institutions

Next Steps

Proceed to Define Opportunity to explore multiple solution approaches.

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