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Smart Contracts, Tokenomics, and How Is the Ecosystem Growing? Podcast Key Takeaways. 

Jul 27, 2023

AI Summary

Here's your AI summary of Smart Contracts, Tokenomics, and How Is the Ecosystem Growing? Podcast Key Takeaways. on Aleph Zero blog

Top 10 Key Takeaways:

  1. Ecosystem Funding Program (EFP) Growth: The EFP has received over 100 applications in just three weeks, with popular verticals including DeFi, gaming, and NFT projects.

  2. Vetting Criteria for EFP: Projects are vetted based on track records, core values, code quality, and their contribution to a balanced ecosystem.

  3. WWVentures' Role: WWVentures is a boutique VC fund that supports early-stage web3/crypto companies with a community-first approach and has been highly supportive of Aleph Zero.

  4. ArtZero's Achievements: ArtZero, the first NFT marketplace on Aleph Zero, utilized the EFP to audit their smart contract code.

  5. Importance of Smart Contract Due Diligence: Mistakes in smart contract code can have significant implications, making due diligence and caution mandatory.

  6. Tools for Ensuring Code Quality: The Testnet and auditing firms are crucial for ensuring code quality, allowing for realistic testing and formal verification.

  7. Mainstream Adoption of Web3: Mass adoption will occur when Web3 products become default options, used without conscious decisions by the users.

  8. Current Market Insights: The market is in a transitional phase between niche crypto endeavors and mainstream adoption, with lessons learned from the 2021 bull run.

  9. Challenges in EFP Response Time: Due to the high number of applications, there have been delays in responding, but the Aleph Zero team prioritizes quality and thoroughness.

  10. Balanced Ecosystem Development: The goal is to distribute projects evenly across different verticals to avoid an ecosystem weighted towards a single use case.

AI Summary

The fifth episode of the Aleph Zero Podcast originated as a Twitter Space, during which we discussed building on multiple blockchains with Brian Nguyen (ArtZero) and explored the growth of the Ecosystem Funding Program (EFP) alongside Max Sarafin (WW Ventures).

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TL; DL

Too Long; Didn’t Listen

  • The EFP has received over 100 applications in the three weeks since it opened. 
  • The most popular verticals being applied for include DeFi, gaming, and NFT.
  • Good track records, common core values, and ensuring code quality are important factors when vetting projects for the EFP. 
  • WWVentures is a boutique VC fund that invests in early-stage web3/crypto companies with a community-first approach. They have been highly supportive of Aleph Zero. 
  • ArtZero is the first NFT marketplace developed on Aleph Zero. They took advantage of the EFP by receiving a grant to audit the smart contract code they are using. 
  • Smart contract code may seem simple, but the implications of mistakes are enormous. Due diligence and caution are mandatory when writing code. 
  • For teams building on Aleph Zero, we encourage them to become acutely aware of the quirks of Rust and ink! 
  • The two pillars of ensuring code quality are the Testnet and auditing firms. The former allows potential users to try out your product, whereas the latter is here to help you formally ensure your code is correct. 
  • Mass adoption is when everyone is using Web3 without knowing they are using Web3. 

The EFP Is Growing Rapidly! 

Since the EFP launched, there have been over 100 applications in the first three weeks. A plethora of Web3 projects have been applying to benefit from the financial as well as marketing, and legal help issued by the program. The most popular verticals currently applied for include DeFI, gaming, and NFT projects. Due to the number of applicants, there have been delays in responding, for which we sincerely apologize. The Aleph Zero team has always prized quality and thoroughness, resulting in a strict admission process that is also quite time-consuming. The teams that apply are vetted on the basis of numerous criteria, including their track record, whether or not they possess the same values and vision towards Web3 as the Aleph Zero team, and finally, their dedication to due diligence and precision in ensuring code quality. Finally, projects are also chosen based on their contribution to building a balanced ecosystem. We want to distribute projects evenly across the verticals to build an ecosystem that is not weighted towards one particular use case. 

WWVentures and ArtZero Share Their Insights on Web3 

The two guests of the episode include Max Sarafin of WWVentures and Bryan Nguyen of ArtZero. The former is a boutique VC fund that invests in early-stage web3/crypto companies with a community-first approach. They have been highly supportive of Aleph Zero over the past years. ArtZero, on the other hand, is the first NFT marketplace developed on Aleph Zero. They are a beneficiary of the EFP, having received a grant to audit their smart contract code. Both Max Sarafin and Bryan Nguyen shared their thoughts on the current state of the market. Their conclusion was that we are currently in this middle ground between crypto endeavors occupying a niche space on the Internet and going mainstream. The 2021 bull run was proof that the industry could onboard large swathes of people. This momentum has subsided as the space learns what improvements can be made to introduce more people in the future. Both agreed that mainstream adoption occurs when people don’t have to make a conscious decision regarding using Web3 products. They just become default options. 

The Importance of Smart Contract Due Diligence 

The last point driven home in the episode was the discussion around smart contract best practices and safety. Smart contracts may seem simple to code, but the implications for mistakes are enormous. As stressed by Aleph Zero developer Piotr Moczurad, even small errors in the code can result in users losing money and sensitive information. In this regard, one of the more useful aspects of the EFP is the presence of auditing firms that cooperate with Aleph Zero and projects building in the ecosystem to provide high-quality feedback to builders regarding code quality. Additionally, Piotr Moczurad stressed that codes should be checked by auditing firms and on the Testnet itself. Tests on the Testnet allow builders to check their code in more realistic settings before Mainnet deployment. For example, builders can find out how their smart contracts behave when dealing with a large, active user base. This feedback is priceless when moving a smart contract to the Mainnet later.

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Recaps

EP. 5 Smart Contracts, Tokenomics, and How Is the Ecosystem Funding Program Growing?

In today's episode of the Aleph Zero Podcast, we discuss building on multiple blockchains with Brian Nguyen of ArtZero and explore how the EFP works alongside Max Sarafin of WW Ventures.
We'll dive into some of the space's fundamental challenges and how to get involved with the Aleph Zero Ecosystem Funding Program.