Ferrum Network AMA
Ferrum network is a decentralized network like the Ethereum Network or IOTA but with a unique value proposition — instead of focusing on new coins, it can represent coins in other networks.
For example, you can have Ether, Bitcoin, ERC-20 tokens, or coins from almost any other blockchain transacted in the Ferrum Network. This groundbreaking innovation allows for very interesting decentralized and interoperable applications, such as the Ferrum Decentralized Exchange (Fe DEX), and the Ferrum Wallet.
Both of these decentralized applications allow users to exchange and transact nearly any digital asset in a fast and inexpensive manner, without requiring them to pass the custody of their assets to a third-party.
Q: Can you introduce yourself and the project to the community?
Hey everyone glad to be here. I am Ian, co-founder and COO of Ferrum Network. Ferrum is a high-speed interoperability network that can connect to nearly any blockchain for a fast, low cost transaction experience no matter the asset, but with a particular focus on building useful products and acquiring users prior to main net launch as a means of ensuring FRM utility.
Q: Can you tell us about your crypto journey? When did you first interact with crypto?
I was first introduced back in 2013 but was a poor law student at the time and didnt get involved. I was re-introduced in early 2017 when a friend showed me the Coinbase app. I bought my first BTC and was hooked. Went down the rabbit hole for months and then realized there was a professional opportunity as a lawyer so I founded my firms blockchain and digital assets practice team.
Q: Hello. I have a question for you. For a high-speed and low-cost trading experience, for most digital assets: BTC, ETH, XRP, EOS, Zcash and hundreds of other things. What technology did Ferrum use?
We achieve interoperability through our own proprietary technology that uses decentralized proxy tokens running on a DAG network so any asset can be exchanged/transactioned in miliseconds for near zero fees.
Q: What problem is Ferrum trying to solve, and how is Ferrum going about solving this problem?
Ferrum is solving the problem of interoperability and lack of actual utility. We built a useful product (fiat gateway first, others coming) on top of the interoperability network to achieve network utility on day 1 of main net launch, rather than building a network and hoping others will build on it.
Q: How does ferrum bring decentralization , scalability and security to it’s network ? Will there be nodes ?
Yes there will be nodes with staking
Q: Do you see the Ferrum platform being used more than Ethereum and if so, how do you plan to gain market share?
Ferrum being used more than ethereum? I mean that would be incredible but the truth is we can be viewed as supplement to the ethereum and bitcoin networks. Those networks are already connected to the ferrum test net, meaning you can already send a btc or eth to another Ferrum user in milliseconds for near zero network fees.
Q: Is your focus on Africa only or do you see geographical expansion ? You plan to build a Dex but for now kudi is centralised isn’t it ? How would you improve liquidity ?
Kudi is focused on Africa but Ferrum is a global company. Our DEX will launch in 2020 after the main net. Prior to that we have the UniFyre Wallet coming out (beta testing about to begin). Kudi is centralized but liquidity is not a main challenge. Kudi is more like Coinbase + Venmo. Its not a trading platform but an fiat gateway for new users.
Q: Your platform being DAG based , will it be interoperable with hashgraph and holochain based blockchains too?
Ferrum is interoperable with almost any network. The fact that hashgraph is also a dag should have no impact on its ability to connect to the Ferrum network. After we connect with the major networks we will do community votes to see what we should connect to next.
Q: So does FE(BTC) or FE(ETH) has same value as its original coin/tokens?
Yes, there are value pegs to ensure the value is always the same. We actually have a patent on that technology. For more info on how it works on a technical level please check out: whitepaper.ferrum.network
Q: Will there be staking?
Yes, there will be staking to secure the network and reward nodes that confirm transactions, and as a reward to early supporters who stake tokens thru our UniFyre Wallet. Exact reward amounts will be announced in the not too distant future.
Q: What are some milestones to look forward to? What do you predict largest challenges will be in the future? How do you plan to address them?
The next major milstone is the release of UniFyre Wallet hwich is a non-custodial multi currency wallet that will list a handful of tokens in v0.1 including BNB, BTMX (thru our parntership with them), GUSD, ETH BTX XRP, a few others. The realy unique things about v0.1 is its security features that will allow you to recover your crypto even if you lose your phone or its stolen. Its basically a best of both worlds between non-custodial privacy and exchange level security.
Q: Can you tell use more about Kudi Exchange? What is special about it? How’s adoption of it? How does it utilize Ferrum?
Kudi Exchange is very special since it is the only fiat gateway in Africa with a US Dollar backed stable coin (through our parntershpi with gemini) and beucase of its ability ot send fiat currency instantly for 0 fees. If anyone wants a private demo of Kudi after the AMA please PM me. I’ll send you Naira right to your What’s App.
Q: What is the market size for crypto assets right now in Africa , how do you plan to increase adoption and liquidity?
Africa is a massive market. Nigeria, where Kudi is started, has 200 million people, 7th biggest btc market in the world, and #1 in google searches for “bitcoin”. We are looking to expand to Ghana in the next few months and then Kenya and other African countries.
Q: Currently, Ferrum has a high transaction rate, low cost — confirmed transaction in milliseconds in about 1 network fee. This is a success for Ferrum. Before that success, did Ferrum face any difficulties?
The biggest challenge there is building the trust. There have been so many scams that we just need to prove ourselves and this takes time.
Many many difficulties. A lot having to do with starting in a bear market. No one would invest. We raised a small seed and had to build Kudi on a budget of less than $100k. The good news is that no VCs invested so its better in the long run
Q: What is Ferrum’s advantage comparing with other cross chain projects such as Cosmos and Polkadot?
Again Ferrum’s approach was to build real world financial applictions and acquire users and then migrate those products and users to our network. IDK how many people are running TXs on Cosmos, but on day 1 of main net launch we are projecting 1,000s of daily transactions just from our African users alone. This is important because they need to spend FRM as gas, and every time a FRM is spent it is burned.
Q: They have an upcoming public TGE on primablock, right?
Yes, ICO on Prima Block on August 1.
Q: Why does Ferrum Network choose to take advantage of the values of existing block chains and connect them to a high-speed transaction layer? What does this help Ferrum?
We saw a lot of projects creating different tokens claiming ot be faster than btc or eth. The problem is no one was using them. So Ferrum is designed to make the BTC, ETH and other networks faster and cheaper. So you can still use your favorite asset, but the transaction experience is consistently fast and cheap.
Q: What has been the biggest technical challenge that you overcame this year? What is it that makes Ferrum better day by day?
Launching Kudi on a budget of less than 100k was incredibly difficult. Our lead engineer has been working 18 hour days for months now. But the whole team works very hard. We all put our heart and souls into Ferrum and this is why we are slowly improving by the day.
Q: Do you see any future regulations hindering your growth?
Yes, as a lawyer I am very concerned about regulations especially coming out of the US. The good news is we are nimble, we can pivot away from a particular market and to another one pretty easily. The next fiat gateway we will launch will be in Europe. For the US we wont touch it until fully licensed.
Q: With each transaction will be a confirmation pow. It fights spam, but it takes a few minutes to confirm the transaction. And when you build this project, speed is the top priority, does pow meet the above requirements?
So Ferrum runs on a DAG which has no miners. Yet DAGs have proven to be not only faster and cheaper than blockchains, but also secure.
Q: How did you meet Naiem your co-founder?
Naiem and I met in early 2018 at a crypto networking event in NYC. He was still working at Bloomberg and I was building out my blockchain practice looking for clients. WE happened to sit next to each other and he told me he built a network that could execute BTC-ETH exchange in milliseconds in a decentralized way. I was immediately amazed and we’ve been working together ever since.
Q: How can we Earn Rewards by Setting up a Fusion Node?
What is the average rate of return that we can expect with our staked assets? Will we be able to stake by using wallets, such as $Atomic Wallet (awc)?
Staking details will be released closer in time to the beginning of staking. It will be very easy to stake FRM thru UniFyre and we are even exploring ways to implement staking for other assets in our wallet.
Q: Can you run down your partners and what is the partnerships all about? I see Fusion there. Tell us about that and the others too.
Yeah I mean the biggest partners are Gemini and BitMax. We are working with Fusion because they developed some interoperability tech we will use.
Q: Safety and security issues are always a matter of primary concern. So what is Ferrum’s security level? And what technology did Ferrum use to ensure user safety?
Aside from it being a hard fork of the most battle tested DAG, we use decentralized proxy tokens to solve the interoperability challenge, meaning that unlike Waves or Bitshares that use similar proxy token technology, if you hack Ferrum there is no honey pot of crypto sitting there. Its all randomly distributed among the nodes.
Q: How does Ferrum sustain itself as a real business long term?
We generate revenue from the operations of our fiat gateways. The next one will likely launch in Europe in 2020.
Q: What would be the initial circulating supply of Ferrum when it lists on Bitmax soon?
It’s around 390k worth of FRM but this could change if people start to convert BEP-2 to ERC-20 thru our token bridge. Still pretty low IMO.
Q: Oh so its gonna be on Binance DEX on the same day?
So we will apply for BDEX at the TGE (you need bep-2 tokens before you can apply) we hope to get listed there about 20 days later.
Q: So BEP-2 to ERC-20 swap available on first day or later?
Yes, there will be a swap available but there will be a fee to bring bep-2 to erc in the first 30 days.
Q: How will you increase liquidity on your Dex, this seems to be a fundamental problem for all?
Liquidity on the dex is a fundamental challenge. But I think you solve it in a few ways. First, your DEX needs to actually be better with other DEXes. Since ours is cross-chain and high speed, it can list any asset and have the same UX as a centralized exchange.
We are always looking for partners and encourage people to connect us.
Q: Speed is a top priority for your project. But will there be future user identity developments? As you know, scammers become more and more, other projects, even though there are steps to confirm user information but the fraud is always happening.
Security is definitely a top priority but most of our products are non-custodial. However we are implementing security features that allow you to recover your crypto if your phone is lost or stolen.
Q: Currently, there are many stable and low-cost networks. So what is Ferrum special to be able to compete with other trading networks?
Again i think it comes down to actual utility. How many people use these other networks? With Ferrum we have already built a product with users and will migrate it onto Ferrum network so day 1 of main net we will have FRM utility and daily TXs which burn FRM.
Q: Many investors only care about token price while others care about tech. Does your team have a plan to attract investors and balance these problems?
Yes we believe we have addressed many different investor concerns. Our hard cap is 1.12 mil selling 23% of tokens and reasonable unlocking schedule. So its a nice proposition from that standpoint. From a tech standpoint we have real products and an innovative solution to major problems in the space. http://onepager.ferrum.network has a nice overview of the token metrics.
Q: Has Ferrum ever raised an equity round?
No, we never did. We bootstrapped the company ourselves until we got a 100k seed investment. BTW check out this demo of a BTC transaction running on the Ferrum test net https://www.youtube.com/watch?v=sib9T3-YuZw
Q: It’s kinda amazing what you have achieved already compared to other projects.
Thank you, it takes hard work and a talented team but we are just getting started.
Q: Where is the headquarters of Ferrum? Where is it registered?
We have numerous entities for legal risk management but the primary one is British Virgin Islands.
Q: Known, in May 2018, Ferrum Network was invited to participate in the 2018 Consensus at Proof of Work Pitch. What are the benefits to Ferrum?
Ah yes so that was when Ferrum really got on the map. In May 2018 we won a competition to pitch Ferrum on the main stage at Consensus NYC.
Q: What is the advantage of choosing DAG network than traditional blockchains?
DAG was chosen becuse it is inherently faser and cheaper than ablockchian. If you want crypto to compete with VISA netowrk it needs to be faster than it takes to mine a block.
Q: So how many transactions per second can Ferrum execute right now?
I am not sure the TPS but many more than we need. The biggest focus was speed of transaction, not being able to run milliosn at once. Once we have millions of TXs per day we can optimize for that. The transactions execute in milliseconds.
Q: Social mining? Will you talk about it?
Ah yes everyone will love social mining. It is a new system first pioneered by LTO and Elrond, Ferrum has it next.
Q: Do explain it.
It rewards the community for adding value. But instead of the project judging what is valuable and how much to reward, the community itself judges. There will be FRM payouts every 2 weeks based on your contributions and how much FRM you hold. The better community memebr you are, the more you get paid. Its pretty simple but completely genius. I cant wait to roll it out. We were delayed because of ICO prep.
Q: Is there a burning of tokens commitment for Ferrum?
So there are 3 types of burning in Ferrum.
- happens with every TX on the network. every time a FRM is spent it is burned.
2) economic burning — products that run on Ferrum can opt into a system where they agree to burn FRM tokens based on their profits
3) a suprise event that everyone should stay on the look out for.
Q: Would love to see Kudi in Egypt , with Mo Salah shilling it.
Haha we would love to expand into Egypt! We are always looking for partners to help us get licenses in different jurisdictions. We are very fair in our dealings and anyone would stand to profit nicely as a result of helping us set up in another country.
Q: Ok. That about wraps it up. Please invite our community to your TG group and the upcoming ICO.
Yes, of course, we would love if you all joined the Ferrum community and even if you cannot get into ICO (KYC closed) you can buy on BitMax on August 5th and start earning social mining rewards when we roll that out post ICO.
Thank you all it was a pleasure! Anyone who wants to see Kudi in action and get some free Naira feel free to PM me. Ill show you how awesome the product is