Interoperability & Dotsama

Illuminati Round Table Call Notes:

Introducing Nick Odio - Chief Growth Officer for Ferrum Network 

• Twitter: @crypt_odio

• Been at $FRM for 2 years and in WEB3 since 2017 

• $FRM started in 2018 and raised $1.2M at the peak of the bull run and launched during crypto winter 2019

• They had to be creative with how to survive the bear market, especially with their small funding 

• They deployed a smart contract-based staking program (back when it was novel) for users to lock up their tokens for yield 

• This allowed them to build an ecosystem of partners - “The Iron Alliance”

• Ferrum is the Latin word for Iron 

• This led them to build Ferrum advisory services - an incubator for new projects, and they've done roughly 3 dozen projects so far

• Introduce them to VCs and the Iron alliance to help them launch 

• This innovative period allowed them to survive 2 bear markets and thrive 

• Currently building a multichain DEX aggregator that allows you to swap anything for anything anywhere and easily 

• Interoperability is more profound than just bridges - Interoperability 2.0 = the ability to move arbitrary data across networks

• Allows projects to draw on the different skills of all the networks at once 

What is Interoperability 2.0?

• The lack of knowledge on this comes from a lack of understanding and the focus initially on just bridging and figuring out DeFi platforms 

• Bridges are very popular for exploits, and then bridging contract is prioritized because it takes in tokens and then pushes out a new-minted wrapped version that inflates the supply 

• The bridge minting tokens is bad, and then honey traps can occur, as we’ve seen - $2.5B has been lost this way in the last 18 months 

• People are bridging so they can participate in a different ecosystem 

• So why not just remove the bridge and make it all one process as opposed to the current 7-8 step process

• Multi-swap - multichain DEX aggregator that allows you to swap any token on any network for any token on another network as long as the liquidity exists

• This eliminates the need for wrapped tokens, and the transactions are routed through USDC 

• Interoperability 2.0 is a necessary change to improve how you move assets from chain to chain - they're figuring out how to get the different programming languages to ‘speak’ to each other

• Code it in one language, and you can deploy the app on a different network 

• True interoperability is multichain everything - DEXs, dApps, etc.  

• This makes the crypto space more capital efficient 

Cross-chain VS Multichain 

• Cross-chain could be more present as you move from 1 chain to another using a mint-and-burn mechanism and wrapping tokens 

• Whereas, Multichain is omnipresent - the tokens existing on all chains at once and easily movable

• Polkadot is leaning more into multichain by allowing projects on their Dotsama ecosystem to exist on different networks 

• The limiting factor of such a network is the difficulty of breaking out of the box they’re kept in 

Dotsama

• Polkadot does very well at building a developer-centric environment 

• Looking at developer activity DOT is the highest of all chains, but on user activity, it is one of the lowest 

• Dots ecosystem is full of developers, valuable products and builders, but no one is talking about it - they need to improve marketing to make it more known 

• Polkadot provides a network for people to build networks on but getting people to adopt a new ecosystem is a complex task, especially with EVM reigning supreme 

• DOT has 3 layers - the internet of networks, the L1s and then the apps, so it's a bit more complex, especially in terms of revenue 

• A user-friendly multichain wallet is needed to complete the puzzle 

• The ordinary person in crypto using platforms like Coinbase would struggle to use Metamask, so even the best need to improve

Market prediction 

• The market will continue to move sideways for most of 2023, and no ATHs until late 2023

• In six weeks, BTC will be $18K

• In six months, BTC will be $24k

• But all are highly dependent on the macro view 

• Fundamentally, the market is much stronger than it was in the bull market

• Any heavy downward movement would have to be driven by heavy-handed regulators or anything massive outside web3

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