It has been 11 years since Satoshi Nakamoto released the whitepaper of Bitcoin. Who would have known that this will ignite a global phenomenon that would rock the whole financial industry by giving us an alternative to the archaic monetary system we have today. Satoshi’s idea of removing intermediaries to bring forth a fairer, cheaper, censorship-resistant, unstoppable and more inclusive monetary system resonated well with the people. It was in a unique position to disrupt the financial industry the same way the internet disrupted publishing.
However, more than ten years down the road it has yet to achieve what it set out to do. This makes us wonder why. There are many reasons for this and we will try to explore some of the causes why it has yet to achieve its goal despite its obvious advantages. After exploring some of the causes we will share with you a relatively new fintech company that may hold the key in achieving mass adoption and show what it is doing right to achieve this. Here are some of the major challenges the cryptocurrency industry faces in its bid to reach mass adoption.
Powerful finance industry
Let’s start with the most obvious reason. The industry that cryptocurrencies are trying to disrupt is simply too powerful and too influential. As a point of reference, how long did the internet took before it was able to meaningfully disrupt the publishing industry? A couple of decades? Central banks, public and private banks, and other financial institutions are far more powerful and influential than publishers. Their clout reaches throughout all industries and they have entrenched themselves in all possible ways in all human activities. This makes them far more formidable industry to disrupt.
Convoluted Crypto Technology
Cryptocurrencies and its underlying technology are oftentimes difficult to comprehend. This is another barrier for many people new to the industry. People find it difficult to understand what value this emerging asset class has to offer and for what purpose they serve. To make matters worse highly influential people with little to no knowledge about the nascent industry are quick to draw negative conclusions about it. With the lack of knowledge and proper awareness, public opinions are easily swayed and instead of embracing cryptocurrencies and the promises it brings their focus turns to the few crypto users who abuse the freedoms it affords.
Limited Capacity to Scale
The challenges of cryptocurrencies do not always emanate externally. Some came from the limitations of the cryptocurrencies themselves specifically its underlying technology. Two of the most popular cryptocurrencies are plagued with the same crippling limitation which makes it virtually impossible to achieve mass adoption — the inability to scale. Bitcoin brought us programmable money, on the other hand. Ethereum enhanced bitcoins underlying technology and expanded its capabilities bringing us programmable blockchain with immense utility beyond the finance sector, both cannot scale.
Costly Transaction fee
Cryptocurrencies were supposed to enable consumers to transact directly without the risk of having to use intermediaries. The removal of these entities are essential not only for frictionless and unrestricted access of their own funds but also for a cheaper way to send and receive money. Bitcoin and Ethereum tried to do this but failed as transaction fees exponentially increase when Its networks are congested. XRP has seemingly addressed the issue of scalability but has been criticized for its proprietary consensus protocol which many views as opaque and overly centralized.
Lack of interoperability
The ever-increasing granularity of the blockchain industry with more specialized applications aggravated by a deluge of available blockchain platform options have created more boundaries. This increased division within the crypto community who has in their best interest should be working together to have a united front from the increasing scrutiny from regulators who seem to be more interested in protecting the existing status quo. More importantly, people should not be overburdened with too many tokens to deal with. If this would be the reality of cryptocurrencies in the future there should be a mechanism to enable users to deal with them easily and effectively.
Volatility is perhaps one of the reasons why many consumers are afraid of diving into cryptocurrencies. This is on top of the many problems we identified earlier. Consumers are afraid to hold cryptocurrencies due to the risk of losing purchasing power. While Merchants don’t want to accept them as they might eat away their margins. While crypto payment processors have found ways how to mitigate them by converting them right away into fiat, however, cryptos are so volatile that you can lose as high as 10% of its value from the time you trigger the payment by the time it gets confirmed in the network.
A solution: Ferrum Network
The founders of Ferrum Network early on realize the potential of blockchain technology but at the same time acknowledge its limitations and challenges. They also knew that a great majority of the world population, especially in those emerging markets are marginalized from the financial system. Basic baking services, investments mechanism, remittances, and other finance-related services remain inaccessible. On the other hand, the team sees Blockchain technology not only as a viable alternative to the existing financial system but can be utilized as a bridge where the unbanked can take advantage of both this new asset class and traditional financial system.
What is Ferrum Network?
Ferrum is a Fintech company that uses blockchain technology to build a scalable and interoperable network for real-world financial applications. It plans to offer a vertically integrated suite of Fintech products that will enable individuals to leverage blockchain technology to have access to basic banking services as well as giving them the option of utilizing this technology for alternative means of getting financial services. While Ferrum Network is not the first one to envision this kind of initiative, they offer innovative solutions to the prevailing problems that we have cited earlier.
The Ferrum Network works with traditional fintech
Most of the blockchain projects position themselves as something that can replace existing well-established and trusted finance systems. In doing so they become existential threats to these systems which naturally reacts to defend itself and its own self-interest. Ferrum Network has a more pragmatic approach in dealing with traditional financial institutions. Instead of working “against” tradition institutions the Ferrum Network works “with” them by creating products and services that bridge the gap between blockchain-based fintech and traditional ones.
Whether the cryptocurrency community likes it or not, traditional financial institutions are still the preferred and trusted choice of the masses. More importantly, governments from around the world recognize them as the primary agents for financial services and primary partners for economic development. By working with traditional fintech Ferrum achieves three important things. First, it gains confidence from bank users by merely associating with banks. Second, it allows users of their platform to gain access to banking services that might not be available directly without passing through its network. Lastly, it gains regulatory recognition as a legitimate and trusted business entity as banks will not just partner with anyone without due diligence.
The Ferrum Network seeks to simplify crypto usage
While it might be true that one must fully understand this emerging asset class to really appreciate what it offers, it does not mean one cannot enjoy its fullest benefit without understanding its underlying technology. Ferrum Network offers simple yet powerful solutions that can easily be operated by anyone, even those without prior experience dealing with cryptocurrencies. This effectively lowers some of the barriers to entry for new participants. Aside from making their applications easy to use Ferrum seeks to build a strong community of well-informed investors and token holders that will help them achieve cryptocurrency awareness and mass adoption.
To achieve this, Ferrum has initiated several awareness campaigns in the key target markets. Particularly focusing on emerging markets where problems of financial exclusion are more evident. This is where they initiated their campaign to build the Ferrum ecosystem. Moreover, the new Fintech company partnered with DAO Maker to use the Social Mining Platform in the hope to transform its community of passive investors, holders and believers into an active, vibrant and engaged Decentralized Autonomous Organization with the main aim of bringing more value (business) into its ecosystem.
The Ferrum Network is a high-performance scalable network
Like any other human construct, cryptocurrencies can always be improved. Even its underlying technology, blockchain can be replaced with something better. One can describe the mainnet of Ferrum Network as a “block-less” blockchain since it does not use blocks at all. It uses a different kind of decentralized ledger technology (DLT) that is more scalable, power-efficient and more secure. This new technology is called a Directed Acyclic Graph (DAG). It has been dubbed as the real third-generation blockchain tech since it addresses many of the problems of the previous blockchain technologies.
It must be noted that it is a misnomer to call DAG as a blockchain as it does not feature a blockchain structure. However, the wider crypto community has accepted Blockchain Technology as a general term to describe distributed ledger technology (DLT). We will continue to refer to Ferrum’s tech as the next-generation blockchain technology due to familiarly with the term. What is important is to know that it uses a more scalable solution that is as secure and as decentralized as those used by leading blockchains. This is possible because DAG allows concurrent transactions to be processed at the same time and individual transactions provide validation for one another.
Ferrum Network’s transactions are cheaper
Transactions done using Bitcoin and Ethereum are not only slow but can be expensive when its networks are congested. This is because both Bitcoin and Ethereum networks process transactions in the order of the highest fees first, together with unscalable blockchain spells disaster when the network is overloaded. On the other hand, Ferrum Network can process concurrent transactions. This means Ferrum needs not to wait for the transaction to finish before it starts a new one. More importantly, the Ferrum Network only costs about 1–5 U.S. cents of Ferrum per transaction.
The late 2017 bull run is a good example of what happens when Bitcoin and Ethereum networks are overloaded. There are horror stories of people having the wait the next day before their transactions can be confirmed. Worse transaction fees during the time exploded, small transactions are impossible due to unreasonably high fees. Imagine having to pay a $10.00 transaction fee for a $3.00 purchase? With the Ferrum Network, you will not have to deal with such scenarios. Best of all you are not limited to using its native token through its Network you can still use Bitcoin and Ethereum without the delays and high fees.
The Ferrum Network is interoperable and interconnected
Pundits believe that the future of the crypto space will be a deluge of cryptocurrencies and blockchains that will offer various solutions to different problems. Most of these projects work in silos with their take on how to scale, decentralized and apply them to solve real-world problems. This means that the DLT industry will increasingly be more specialized with projects having comparative advantages over another in providing solutions. With the Ferrum Network, users are enabled to leverage the core competencies of each of these blockchains and cryptos.
One of the key features of the Ferrum Network (FN) is interoperability. Instead of trying to knock out other competition the Ferrum Network acts as an enabling technology. Its primary purpose is to work with other blockchain initiatives as well as traditional finance to enable users to transact using their most preferred asset. One can liken the (FN) to Bitcoin’s Lightning Network but with much wider support for different blockchains, cryptocurrencies and fiat. In addition to this, FN uses an entirely different technology and implementation.
The Ferrum Network addresses volatility
Time and time again we see people complain about how volatile cryptocurrencies are. They are so volatile that even the most seasoned forex professional traders cringe in the prospect of trading them. As we said earlier, some payment processors tried to mitigate the volatility by converting them right away to fiat but still, you have to wait for the digital asset blockchain confirmation before consummating the transactions into fiat. This would be a great solution for fast blockchain but this will not be as effective using slower ones.
The Ferrum Network has several ways to resolve this risk. First, Ferrum Networks (FN) transactions are confirmed in seconds, not in minutes. This means both consumers and merchants are not exposed to unnecessary risk due to latency and delays. Second, FN allows faster and cheaper movement of coins or tokens through a proxy mechanism that enables them to leverage the network’s high throughput infrastructure. Lastly, FN allows users to move their cryptocurrencies into less volatile assets like stablecoins like Geminin Dollar (GUSD) and fiat currencies like Naira.
How will the Ferrum Network achieve this?
The Ferrum team has been developing the Ferrum Network by looking at the best-distributed ledger technologies, improving them and incorporating them into its protocol which has been being built from the ground up. It plans to utilize its network through a suite of solutions that will fuse traditional finance and blockchain technology. Moreover, it will serve as a scalability and interoperability layer which will empower users to be able to transact with whatever digital currency they might want to use. To give us a clearer picture of how Ferrum Network will be able to achieve this let us examine what it has to offer and what it has done so far to realize this.
Ferrum’s main network (FN) is currently being built by a team of experts led by Dr. Naeim Yaganeh, the founder, CEO and Lead Developer of Ferrum. Dr. Yaganeh brings over a decade of experience developing massively scalable distributed systems as an engineer and machine-learning expert working for Microsoft, Amazon, and Bloomberg. FN will be built on a directed-acyclic graph (DAG) Network which means it will have inherent advantages over traditional blockchains in terms of speed, cost, and scalability. FN is planned to be released on Q2 2020 and migrate all of its products and services on its network.
DAG has been described as the third generation blockchain technology or rather a third-generation distributed ledger technology. The first generation blockchain aka blockchain 1.0 was bitcoin. The second generation, Blockchain 2.0, came when Ethereum introduced the smart contracts. While they are impressive technologies in their own right neither can cope with the demands of mass adoption. Bitcoin can only process 7 transactions per second (TPS) and Ethereum around 15–20 TPS. This limitation can be attributed to the design of their blockchain which tries to balance scalability, decentralized and secure.
Unlike Blockchain, a DAG does not create blocks to add new transactions on to its ledger. New transactions are directly written on its ledger without having to wait. This means there is no need for miners, making DAG a very energy efficient DLT. In addition to this, transaction fees are much less since there is no need to pay miner’s fee, it resembles more of spam protection for the network. Lastly, DAG horizontally scales which means transactions can happen in parallel or concurrently, enabling it to process transactions at a much higher rate.
Ferrum Suite of Products
Before the release of its main network, the Ferrum team has started creating products that can utilize the network. One must remember that the Ferrum Network positions itself as a Fintech company which recognizes that revenue streams, working products, and real users are as important as the underlying technology they are trying to create for its survival. They also believe that they do not need too much seed funding to create great and useful products and more importantly, revenues generated from these products should be able to cover operational expenses as well as development funds.
While the Ferrum Protocol is continuously being worked on the vertically integrated suite of products are concurrently being developed. One of the products has been deployed in one of its key target markets, Kudi Exchange fiat gateway. It has recently rebranded to First Kudi to reflect its recent expansion of services which includes custodial wallet services for fiat and cryptocurrencies, point of sale application, loyalty and referral program and soon debit cards. Staying true to their promise of financial inclusion, Ferrum’s First Kudi has partnered with Providus Bank, one of Nigeria’s leading banks.
UniFrye Non-custodial Hot Wallet
Another product that will soon be released is UniFrye. It is a non-custodial Hot wallet that will connect with two Ferrum-based products — Infinity DEX and Sub-Zero Wallet. Some of its unique features are risk-free OTC trading and novel safety features that will enable users to secure transactions before execution. UniFrye is positioned as the first non-custodial wallet for high-performance peer-to-peer transactions of any digital asset. A Chinese version is also being developed to capture one of the world’s largest OTC market. Beta testing for Unifrye is expected to begin in December 2019 or January 2020.
Sub-Zero Cold Wallet
In line with its mission for financial inclusion for all, the Ferrum team is also developing Sub-Zero Wallet. An ingenious application that turns an ordinary Android phone into the most secure and mobile cold-storage solution. Now cold-storage solutions are easily accessible and cost less. The application is free requiring a small amount of Ferrum Network utility tokens to activate the wallet. It will run on the Ferrum Network and will be integrated with the network’s upcoming decentralized exchange. Sub-Zero Wallet is a simple, low-cost, secure and mobile cold storage that will enable millions better control of their digital assets. This wallet is expected to be released shortly after the Ferrum mainnet.
The last and perhaps the most exciting product of Ferrum will be the infinity DEX. According to the Ferrum team, this will feature decentralized risk-free high-frequency trading, margin trading, and AI-assisted trades. The DEX will cater to advance and novice traders with a simple yet powerful user interface. Infinity DEX will facilitate an instant exchange for the Unifrye wallet as well as the main trading venue for Sub-Zero Wallet. Like the other Ferrum products, it will be built on top of the Ferrum Network and will be blockchain agnostic which means it can be used to exchange any digital asset.
Ferrum Network’s Cryptocurrency Proxy: Fe
One of the key features of Ferrum Network is the implementation of a cryptocurrency proxy called Fe. This serves to represent the different cryptocurrencies from different types of digital assets in the Ferrum Network. It serves as a “proxy” that can be moved faster within the Ferrum Network. Its value is pegged to the originating cryptocurrency or fiat and can be imported or exported in relation to its underlying asset that it represents. The main aim of this feature is to allow transactions of all types of digital or digitized assets in the Ferrum Network taking advantage of its scalability and interoperability.
To ensure the security of the assets that are represented by the crypto proxy Fe, the Ferrum Network locks them securely into its system (import) and unlocks them (export) when it goes outside of Ferrum’s network. According to the Ferrum team, they will utilize several security features that will ensure that assets are imported and exported properly. These are Proof of Burn, External Proof and Futures. They are mechanisms that will show proof that the crypto proxy Fe is destroyed so that it cannot be used to double-spend, an external audit through adversary pools to ensure proper accounting of the digital assets and contract that to secure the transfer of value.
The Ferrum Network can read into other networks using an external network plug-in model. It is a way of passing information between Ferrum Network (FN) and other decentralized ledgers. Ferrum Colonies consist of a main network that is connected to external networks in which FN will be used for transaction settlements. One can think of it as a heterogeneous network interacting with each other. The Ferrum team liken Colonies as the European Union, a collection of networks with the same currency and seamless interaction but still keep their locality.
Ferrum Colonies enables external networks to form specialized sub-networks. This Ferrum sub-networks can spin-off and to create assets to represent real-world assets or create a new cryptocurrency. These sub-networks can then reconnect the Main Ferrum network if they want to interact with the outside world. Through this mechanism, Ferrum Network has created a network where all digital assets can be traded. One can liken the Ferrum Network as the Universal Decentralized Exchange.
This allows truly decentralized value exchange as any asset (Crypto or fiat) can be traded in the Ferrum’s Network. Ferrum colonies and spinoffs allow the issuers total control of their assets while giving them the option to connect with the outside world via the main network of Ferrum. Imagine a small nation-state decides to adopt a digital currency, which they control completely, yet needs to interact with the external world, they can adopt a Ferrum spin-off for their economy and issue their currency without worrying about being dependent on a network that they do not control.
Ferrum Token (FRM)
Ferrum token is the native protocol token of the Ferrum Network. It serves as currency to pay for all transactions in the network. One can liken it Ethereum’s gas which is spent each time a transaction is executed. However, unlike Ethereum these gas payments do not go to the pockets of miners. Instead, they are burnt by sending them to an unrecoverable address. Transaction fees are approximately 1–10 cents each, depending on the transaction. They are used as an anti-spamming mechanism and security measure. The tokens serve as proof to the network for the execution of the transaction.
The utility of the Ferrum Token
Ferrum is primarily used as transaction fees in the Ferrum Network. Each time FRM is spent it is burnt. Transaction fees are determined based on price not on the number of units of FRM, ensuring that fees always within 1–10 cents. This means that whatever the price of Ferrum the number of tokens required for transaction fees will always be equivalent to 1–10 cents. If the value of FRM tokens suddenly increases then the number of FRM tokens required for the transaction should decrease.
Ferrum Tokens will also be used as a fee reduction mechanism in many of the products and services of the Ferrum ecosystem. Users can use FRM token to reduce exchange fees on the Infinity DEX, reduced activation fee for full functionality of the Sub-Zero wallet or reduce payment cost for First Kudi exchange transactions. Users who will be paying for products and services with FRM tokens will be given special discounts. The aim of this is to increase the utilization of the token and increase its demand. This increase in utilization will increase token burns and might have a positive effect on its token price.
In the future, Ferrum Network will use its native tokens to help secure its network through a staking mechanism where holders of these tokens can participate as transaction validators where they will receive a percentage of the transaction fees. This will add layer of security for the Ferrum network and the team hopes that this will increase the interest of people to participate in validation activities. This, in turn, will help spur demand for Ferrum’s protocol token and help catalyze the token’s positive price movement.
What has Ferrum Network done so far?
First Kudi fiat gateway
The very first working product of the Ferrum Network is First Kudi (Previously known as Kudi Exchange) which is described as a fiat gateway based in Nigeria, a country with 200 million people located in West Africa. It is owned and operated by the Nigerian Blockchain VC TLG Ventures in partnership with Ferrum Network. The strong relationship of TLG with Banks and regulators enabled First Kudi to secure the necessary licenses and banking connection to make the fiat exchange a reality in a short time.
According to Ian Friend, COO, and Legal Adviser if Ferrum Network, First Kudi can be described as Coinbase and Venmo for the emerging markets. It plans to be the fastest, lowest cost and most advanced digital currency exchange in Nigeria. It also the only exchange in West Africa to offer U.S. Dollar Stablecoin through its partnership with Gemini, US-based digital currency exchange and dollar-backed stablecoin issuer. In addition to this, the app features one-click personal bank account creation through its partnership with Providus, one of the leading banks in Nigeria.
First Kudi evolved into a powerful mobile application that enables users to instantly create bank accounts that are backed by a real bank, perform peer-to-peer instant crypto or fiat payments, and transform your smartphone into a smart point of sales system that accepts both crypto and fiat payments. In addition to this, one can use First Kudi as an investment platform in trading the different digital assets supported by the mobile application. Finally, First Kudi will be releasing its bank card, dubbed as the Kudi Card
To accelerate First Kudi’s onboarding efforts to capture more consumers and businesses, the Kudi team has been aggressively doing direct marketing through door-to-door sales and app demonstrations. In addition to this First Kudi has officially released its first referral program where consumers can earn bitcoins (BTC) by signing up for a First Kudi app and referring others.
The Ferrum Token (FRM) is officially traded in four exchanges. FRM was first listed in BitMax.io on August 5, 2019, with FRM/USDT and FRM/BTC pairs. In the same month, on the 26th, it was listed in Binance decentralized exchange (DEX) with FRM-DE7/BNB pair. A month later, September 23, 2019, it was listed in another DEX, IDEX, where FRM/ETH can be traded. The latest listing came last November 15, 2019, where FRM was listed in Eterbase with FRM/EBASE and FRM/ETH trading pairs.
Its first listing partner, BitMax.io was also the venue where it removed 2.5 million FRM from its supply. BitMax sent 2.5 million ERC-20 FRM Tokens in a burn address last September 11, 2019, effectively lowering the total supply to approximately 329M+ down from 331M+. The Token burn was conducted to demonstrate Ferrum Network’s commitment to burn every Ferrum Network Token spent on transaction fees. Two more subsequent tokens burns were conducted, this time around burning BEP-2 tokens on October 26 and 27, bringing the total supply of ERC-20 and BEP-2 Ferrum to the same number of tokens.
Binance DEX is the decentralized version of cryptocurrency exchange powerhouse Binance. It is built on top of Binance’s blockchain and often serves as a preliminary listing before being listed on the main exchange of Binance. Its listing is essential since half of the total supply of its tokens are issued on Binance Chain as a BEP-2 token. Another important exchange listing of Ferrum Network Token (FRM) is with IDEX. It is the leading hybrid decentralized exchange and has recently announced the integration of the Coinbase Wallet into its platform.
Recently, FRM was listed in Eterbase, one of Europe’s leading regulatory-compliant cryptocurrency exchange. Etherbase offers many unique features such as Euro-backed stablecoin, negative trade fees, and corporation IBAN accounts. Aside from being listed in the exchange, Ferrum Network and Eterbase entered into a cooperative co-marketing agreement to help promote each other. While Ferrum Network has not yet pushed towards European market expansion, it has always been the intent of the Ferrum team to do so in the future and this partnership will be a very valuable initiative when it does.
The Ferrum Network has adopted the Social Mining Platform by DAO maker, to convert its community of passive investors, supporters, and believers into a vibrant and active community incentivized to learn and spread awareness about their company through social media marketing. Participants are required to hold 5,000 Ferrum Network Tokens to qualify. Ferrum social miners holding more Ferrum tokens, for a longer period and those who continuously participate in value-adding activities will be rewarded more.
Through this community-driven marketing mechanism, Ferrum Network is hoping to attract the right kind of supporters, those who believe in the project and those who are willing to contribute to the long term success of its initiative. Social mining is a relatively new community building, marketing, and rewarding tool but has shown immense potential based on the quality and quantity of contributions from participants. Participants who do not bring value into the ecosystem are penalized and given with much lower rewards.
Aside from banking and crypto exchange partnerships, The Ferrum team are also busy partnering with different blockchain-based tech companies and organization that would bring symbiotic benefits. These partnerships vary from strategic marketing to full-blown technical cooperation. These are some of their notable partnerships:
According to Ferrum Network’s official blog-post, Vectorblocks is a “global blockchain strategy consulting company” and on March 29, 2019, Ferrum Network acquired the services of Vectorblocks to develop the token metrics of Ferrum Network Token (FRM). They aim to design a well-balanced metric that will help the long-term price appreciation, incentivize and reward early investment, and facilitate the global adoption of FRM and its products.
On April 24, 2019, the Ferrum team announced its partnership with Hydro, an open-source blockchain project focusing on identity, security, and payments. Ferrum Network intends to utilize Hydro’s Snowflake protocol in its hot (Unifrye wallet) and cold (Sub Zero wallet) wallet solutions. In doing so, Ferrum Network will leverage Hydro’s identity authorizations, risk-free transactions, and cold storage management technology.
The Ferrum team seeks to create a more reliable interoperability network by leveraging Fusion’s Distributed Control Rights Management System (DCRM). It is a patented technology module that enables users to lock-in and lock-out multiple assets across blockchains without having to reveal private keys. Fusion’s technology also offers universal short account number (USAN) and multi-token digital asset management tools.
In addition to creating half of its tokens in the Binance Chain and the subsequent listing on Binance DEX, the Ferrum Network joined the Binance Chain Alliance effective opening the doors to many high profile partnership opportunities. To show its appreciation and to increase the interoperability of its ERC20 and BEP-2 tokens, the Ferrum team releases a token bridge that enables users to covert their ERC20 tokens into BEP-20 or vice versa.
Ferrum Network has also added to offer Dash Payment options to its First Kudi customers and merchants as well as having it supported on its other product line. This is mutually beneficial for both Ferrum Network and Dash as they will be able to leverage each other’s market reach. Dash is very active and popular in many emerging markets and has increasingly been recognized as the “go-to” cryptocurrency of choice for commerce due to faster transactions and lower fees and strong local presence, like in Africa and Latin America.
PCHAIN has been described as the Super Ethereum of China and also a member of the Binance Chain Network. Its strong presence in China fits well with Ferrum Plan’s to expand into new markets particularly in Asia. Not many details were disclosed about the partnership but it is interesting to note that PCHAIN is the world’s first native multi-chain system supporting EVM, with original PDBFT algorithm, unified knowledge graph, and smart data oracle mechanism, it has also been touted to achieve over 180,000 TPS on its test nets.
Staking has been gaining much attention in the crypto space lately with major players from custody service providers, exchanges and blockchain projects offering some sort of staking mechanism to entice investors to buy and hold cryptocurrencies. Not to be left behind on this trend Ferrum Network is offering its staking program. It has one of the highest staking returns on the market with participants who can earn as much 50% APY and presents unique features to incentivize longer holding. Furthermore, participants are given the option to withdraw early to mitigate risk.
Ferrum Network’s web staking program is pool-based, flexible and strategic. It is pool-based because of multiple parties can participate in each staking contract. There are three staking pools with varying rewards and maturity period. It is also flexible, allowing staking participants to withdraw early mitigating risk. However, leaving early comes at a cost in the form of lower rewards. The deducted rewards will be added to the reward pool of the contract, therefore, making it strategic.
True to their promise of inclusivity all pools have the same minimum requirement of 5,000 Ferrum Network Tokens (FRM). There are three available staking pools where participants can join — Gold, Platinum, and Diamond. They are given a limited period of 7 days to participate in each of the Staking pools. Details of each staking pools are indicated in the chart below:
Current assessment of the Ferrum Network
The core values of the Ferrum Network organization are transparency, community, and longevity. One of the hallmarks of a great organization is being able to uphold its core values despite the ever-changing landscape where it operates in. Ferrum Network has proven this time and time again.
The Ferrum Network’s team have been forthcoming with all major partnerships, marketing campaigns, and development with their Investors, supporters, and believers. One just needs to follow its social media accounts to keep updated with the progress of their development. The Ferrum team and its community is so close-knit that the COO and General Counsel are often seen engaging the community daily, answering questions about the company, developments, and products.
Their transparency is a sign of supreme confidence that they will be able to deliver on their promise of building an interconnected line of Fintech products that will empower individuals and businesses to attain total control of their finances. Furthermore, Ferrum Network’s code is intended to be open-source once the product is released and the team has hired a third-party professional code reviewer for their code’s thorough assessment. Lastly, to demonstrate their commitment to transparency and honesty The Ferrum team has shared the project’s wallet addresses to enable anyone to inspect and monitor funds related to Ferrum Network’s operations.
From the very beginning, the Ferrum team has shown a great understanding of the importance of community. Not only in terms of building a community of investors, supporters, and believers but being able to work with the wider traditional and blockchain-based fintech community. This kind of tact has opened many doors of opportunity enabling them to accelerate the delivery of their products and the development of its main network. In addition to this, they can harness and leverage relevant ideas and technologies that will help them to realize their goal of building an interoperable network design for real-world financial applications.
The community is a great source of feedback mechanism to ensure that Ferrum Network’s products align well with what they have set out to do. Moreover, It is an effective benchmark to learn more about the market they want to serve. The Ferrum team’s First Kudi is a prime example of what kind of products it wants to bring out. To bring innovative and unique products that empower consumers and businesses, the First Kudi team has been actively engaging the community to spread awareness about its product, make an assessment of market reaction and make the necessary adjustment based on their feedback.
One of the most impressive characteristics of the Ferrum team is the fact that they were able to accomplish so much in a relatively short period with self-imposed limited funding. Even more impressive is the fact that they can do this in the middle of the longest bear market where we see other more funded and popular projects either hibernating their initiatives or calling it quits. To put this in the proper perspective, the team has limited the hard cap of their fundraising to just 1.12 million USD despite the potential of raising a lot more. The team believes that for the time being they do not need more during the seed phase of their business.
Low monthly burn rate
While there are many advantages to having more funding the Ferrum team believes that having more than what is necessary will be harmful to their business in the long term. They believe that the best projects are built during the bear market and learning how to operate effectively with a very low monthly burn rate increases their competitive edge over other projects with much higher operating expenses. More importantly, the team believes that the products they create will generate enough revenue to allow them to move forward. As a contingent, they have developed a Traction Based Reserve Model that will enable them to access additional funding if the need arises.
The Ferrum team has created a reserve model that not only enables them to get access to additional funding, a way of fairly giving themselves additional funding based on the performance of their products. 17% of the total supply will be allocated and locked for this reserves model. These reserves will start to unlock after a year based on the total number of tokens burnt (remember all transaction fees are burnt) from transactions made on the network. In other words, the primary unlocking mechanism of the reserves will be measured based on the utilization of the network.
It is important to bear in mind that Ferrum Network is still in the seed and development phase with its main net expected to launch on Q2 2020. In spite of being early on its development cycle and with very limited resources, it has already released its pilot product, First Kudi, which has been experiencing tremendous growth in the jurisdiction it was released. It serves as the model product of Ferrum Network that enables consumers and businesses to have easy access to financial services through traditional and blockhain-based Technology.
In addition to this, UniFrye is expected to be released soon which plans to bring decentralized finance into the Over-the-Counter (OTC) market. A market generally believed to be several times bigger than spot markets. In line with this push, the team is building the Chinese version of UniFrye and has partnered with China-based marketing and blockchain organizations. This is a clear indication that they will enter one of the world’s biggest underserved OTC market. This will enable Chinese speaking users a peer-to-peer exchange of value in a market where trading venues are restricted.
Furthermore, the ingenious implementation of Sub Zero wallet will allow everyone cheap access to a simple yet powerful cold storage solution. Once released everyone can download the wallet and turn any smartphone into the most advanced cold storage solution with what the team describes military-grade technology. This will empower millions of users around the world to have total and complete control of their digital assets using devices that they already have. Requiring only a small amount of Ferrum Tokens to activate.
Ultimately, all of these products will have a common venue, the Infinity DEX. An interoperable decentralized exchange where digital assets from traditional and blockhain-based financial institutions will be able to interact with each other seamlessly and cost-effectively. Transactions will be fast, frictionless and borderless enabling anyone to participate no matter where they are and what digital assets they are trading. This is a prime example of an ecosystem that is designed from the ground up to be inclusive, enabling a greater number of users to access a wider range of financial services with a potentially unlimited number of options.
That being said, it is still very early to pass judgment on this fledgling Fintech Company, but based on what we have seen far there is an immense potential value for this project if they can pull off what they have set out to do. This can turn out to be a low-cap, low float hidden gem that can anytime explode upside from its current position. This is on top of earning mechanisms that investors might want to explore like Social Mining and Web-based staking. It is certainly one of the lesser-known projects that can whet the appetite of investors looking for a very good investment deal that can easily turn to the next Crypto Unicorn.