Panaverse DAO

Web 3.0 User Guide

Join the Future Now
Zia Khan
MA, MBA, MAC, MSE, CPA, and CMA
https://www.linkedin.com/in/ziaukhan/

www.panaverse.co
 The future is already here.

Those who understand it will run the world.

Here are the key services and concepts that will get
you up to speed quickly.
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Core Ideas of Web3
● Web3 is decentralized: instead of large swathes of the internet controlled
and owned by centralized entities, ownership gets distributed amongst its
builders and users.
● Web3 is permissionless: everyone has equal access to participate in Web3,
and no one gets excluded.
● Web3 has native payments: it uses cryptocurrency for spending and
sending money online instead of relying on the outdated infrastructure of
banks and payment processors.
● Web3 is trustless: it operates using incentives and economic mechanisms
instead of relying on trusted third-parties.
 What do we mean by
“blockchains are trustless”?
When we say blockchains are “trustless,” what we mean is that there are
mechanisms in place by which all parties in the system can reach a
consensus on what the canonical truth is.

Power and trust is distributed (or shared) among the network’s stakeholders
(e.g. developers, miners, and consumers), rather than concentrated in a
single individual or entity (e.g. banks, governments, and financial
institutions).

Perhaps a more accurate way to describe blockchains is not as “trustless,”

but as built on the basis of distributed trust: We are trusting everyone in
aggregate.
What is Ethereum?
● Ethereum was launched back in 2015 and is famous for being a
decentralized and open-source proof-of-stake blockchain with smart
contracts functionality.
● One of Ethereum’s biggest strengths is its variety of use cases, and the
list keeps on growing every year.
● As with Bitcoin, it is a large database of all the transactions conducted
on the Ethereum Network.
● A database usually structures its data into tables, whereas a blockchain,
as its name implies, structures its data into chunks (blocks) that are
strung together.
What is Ether (ETH)?
● Ether is the transactional token that facilitates operations on
the Ethereum Blockchain network.
● While ether is the cryptocurrency of the Ethereum network,
metaphorically speaking, it is more accurate to refer to it as the
"fuel" of the network.
● Ether is the world’s second-largest virtual currency by market
capitalization; it is second only to Bitcoin (BTC) according to
market value.
● ETH isn’t just a speculative asset; it has actual value.
Ethereum Base Units
Think of the smallest unit of ether – wei – as a penny. It takes a
whole bunch of wei to make an ether. 10^18 wei, to be exact.

10^9 wei is a gwei. Gwei is most commonly used when talking

about gas (network transaction fees). Rather than saying your gas
cost is 0.000000001 ether you can say 1 gwei.
Ethereum Gas Fee
● Gas is essential to the Ethereum network. It is the fuel that allows it to
operate, in the same way that a car needs gasoline to run.
● Gas refers to the unit that measures the amount of computational effort
required to execute specific operations on the Ethereum network.
● Since each Ethereum transaction requires computational resources to
execute, each transaction requires a fee. Gas refers to the fee required to
conduct a transaction on Ethereum successfully.
● Gas fees are paid in Ethereum's native currency, ether (ETH). Gas prices are
denoted in gwei, which itself is a denomination of ETH - each gwei is equal
to 0.000000001 ETH (10-9 ETH).
https://etherscan.io/gastracker

Vitalik Buterin, co-founder of

Ethereum, believes Ethereum will
be able to process close to
1,00,000 transactions per second.
At present, it can do 25 per
second.

The next stage is sharding, a

process to reduce network
congestion and increase
transaction speed.

Sharding will create 64 different

shards so that the information of
the blockchain is split up.
Ethereum for Applications
● Ethereum will completely transform applications of all shapes and
sizes.
● With a built-in scripting language and distributed virtual machine,
smart contracts can be built to carry out all sorts of functions without
the need for a trusted third party or central authority.
● Using its internal cryptocurrency, ether, nodes can be paid for their
processing power in running these decentralized apps, and entire
decentralized autonomous organizations (DOAs) will exist in an
ether economy.
What is a Dapp?
● A dapp has its backend code running on a decentralized peer-to-peer
network. Contrast this with an app where the backend code is
running on centralized servers.
● A decentralized application (dapp) is an application built on a
decentralized network that combines a smart contract and a frontend
user interface.
● On Ethereum, smart contracts are accessible and transparent – like
open APIs – so your dapp can even include a smart contract that
someone else has written.
Ethereum for DeFi
● Ethereum has given rise to a new constellation of “decentralized finance” or
DeFi businesses and projects.
● Essentially the cryptocurrency version of Wall Street, DeFi aims to offer
people access to financial services—borrowing, lending, and trading—
without the need for legacy institutions such as banks and brokerages, which
often take large commissions and other fees.
● Most DeFi apps are built on the Ethereum blockchain.
● Ethereum has a range of potential applications beyond cryptocurrency,
experts say, such as facilitating real estate deals and international trade.
Summary From ‘How To DeFi (Beginner)’ Book

https://blog.cryptostars.is/su
mmary-from-how-to-defi-begi
nner-book-by-coingecko-23e
0c001e0ad
8 DeFi Key Categories
1. Stablecoins
2. Lending & Borrowing
3. Exchanges
4. Derivatives
5. Fund Management
6. Lottery
7. Payments
8. Insurance
Ethereum for Global Trade and Commerce
● International trade is a $16 trillion market that accounts for the
exchange of capital, goods, and services across international
borders or territories.
● Major trading companies around the world are recognizing the
transformative impact of Ethereum blockchain technology in
operating global supply chains, managing trade finance, and
unlocking new business models.
REAL ESTATE ASSET TOKENIZATION
● Real estate is the world’s most significant store of wealth. The total value of all the
world’s real estate stands at USD 327 trillion, a record high. To put that into context,
the value of all gold ever mined pales by comparison at USD 12.1 trillion — just 4%
of the value of global property.
● Tokenization of commercial real estate transactions will reduce transaction costs from
30% to 2%, entry barriers for investors from $200,000 to $100 and reduce the time for
conducting operations from 1 month to 1 click.
● Asset Fractionalisation is the simple process of dividing an asset into smaller
denominations so that many users can buy its partial ownership.
● We can apply to Assets such as art, precious metals, real estate, private equity or debt
positions, etc.
● https://github.com/panacloud-modern-global-apps/defi-dapps-solidity-smart-contracts/
tree/main/step20_real_estate_tokenization
 What is Public Key Cryptography?

Public key cryptography, also known as asymmetric cryptography, uses two

separate keys instead of one shared one: a public key and a private key.
Public key cryptography is an important technology for Internet security.
Public key cryptography is a method of encrypting or signing data with two
different keys and making one of the keys, the public key, available for
anyone to use. The other key is known as the private key. Data encrypted
with the public key can only be decrypted with the private key.
 What is a Crypto Wallet?

Crypto wallets keep your private keys – the passwords that give you access to
your cryptocurrencies – safe and accessible, allowing you allow you to send,
receive, and spend cryptocurrencies like Ethereum and ERC-20 Tokens.
A cryptocurrency wallet consists of a set of public addresses and private keys.
Anyone can deposit cryptocurrency in a public address, but funds cannot be
removed from an address without the corresponding private key. Private keys
represent final control and ownership of cryptocurrency.
 What is MetaMask?

MetaMask is a cryptocurrency wallet that enables users

to access the Web 3 ecosystem of decentralized
applications (dapps). It also enables users to store Ether
and other ERC-20 tokens.
 Goerli Testnet
It is named after a train station in Berlin and is
one of the largest and most active
Ethereum test nets.

https://www.definitions.net/pronounce/Goerli
What is a Faucet?
Few developers want to spend real
money when testing or deploying
smart contracts. That’s why testnet
faucets are the ideal solution – you
get free cryptocurrencies you can
use to pay gas when deploying or
testing smart contracts.
1. Change to Goerli Test
Network
2. Create a testing
account
3. Copy Your Wallet
Address
What is a Etherscan?
Etherscan, an Ethereum blockchain
explorer, allows you to search the
Ethereum blockchain for free.
Through the tool, you can see records of
past transactions, smart contracts,
wallets, gas fees, and other information
related to the Ethereum network.
What is Uniswap?
● Uniswap is the largest decentralized exchange (or DEX) operating on the Ethereum blockchain.
● It allows users anywhere in the world to trade crypto without an intermediary.
● UNI, the governance token that allows users to vote on key protocol changes.
● Uniswap was one of the first decentralized finance (or DeFi) applications to gain significant
traction on Ethereum — launching in November 2018.
● Numerous other decentralized exchanges have launched (including Curve, SushiSwap, and
Balancer), but Uniswap is currently the most popular by a significant margin.
● Uniswap pioneered the Automated Market Maker model, in which users supply Ethereum tokens
to Uniswap “liquidity pools” and algorithms set market prices (as opposed to order books, which
match bids and asks on a centralized exchange like Coinbase) based on supply and demand.
● By supplying tokens to Uniswap liquidity pools, users can earn rewards while enabling peer-to-
peer trading.
● Anyone, anywhere, can supply tokens to liquidity pools, trade tokens, or even create and list their
own tokens (using Ethereum’s ERC-20 protocol).
What is Binance?
● Binance is an online exchange where users can trade cryptocurrencies. It
supports most commonly traded cryptocurrencies.
● Binance is a cryptocurrency exchange with the highest liquidity, and Uniswap
can be considered its decentralized equivalent.
● Binance provides a crypto wallet for traders to store their electronic funds.
● The exchange also has supporting services for users to earn interest or transact
using cryptocurrencies.
● Users can buy, sell, and trade crypto, choose options and futures trading, apply
for crypto loans, earn passive income and more with a single login. These
centralized products are easy-to-use and comprehend, and can be accessed using
a web browser, desktop or mobile app.
Uniswap vs Binance?
● Uniswap v3 is the the largest decentralized exchange by trading volume, with more than $1.7
billion worth of assets changing hands in 24 hours, according to data from Coingecko.
● However, Binance is the largest centralized crypto exchange with $22.2 billion in trading volume
over the same period. Coinbase, meanwhile, logged $3.1 billion.
● Uniswap has four fee tiers: 0.01%, 0.05%, 0.30% and 1.00%. Depending on the pair you trade,
you could be charged as low as a 0.01% fee or as high as a 1% fee.
● Stablecoin pairs like USDC/USDT on Uniswap have usually low fees while altcoin pairs tend to
have higher fees, which you can check out on Uniswap’s overview page.
● Binance, on the other hand, has very low trading fees starting from 0.10%.
● The research used a metric called market depth to compare liquidity across Uniswap v3 and the
centralized exchanges. Market depth, a common method used to measure liquidity on exchanges,
shows how much of one asset can be traded for another at a given price level. For an Ether/USD
trading pair, a trader who executes a single $5-million trade can save about $24,000 on Uniswap
v3 compared with Coinbase, according the research.
 How to buy
Ethereum in
Pakistan
https://www.techjuice.pk/how-to-buy-ethereum-in-pakistan/
What is ERC-20?
● Ethereum Request for Comment 20 (ERC-20) is the implemented standard for fungible tokens
created using the Ethereum blockchain. It is the technical standard used in many new tokens
created using the Ethereum ecosystem.
● A fungible token is one that is interchangeable with another token—where the well-known non-
fungible tokens (NFTs) are not interchangeable.
● It guides the creation of new tokens on the Ethereum blockchain so that they are interchangeable
with other tokens used within smart contracts.
● Smart contracts were becoming more popular in 2015, but several issues needed to be addressed.
Because anyone could make a token, many were being created. However, there wasn't a way to
ensure that all of the different tokens could be created, used, or exchanged.
● Without a standardized methodology for tokens, every application would need its own token, and
users would need to find a way to convert them back and forth between the hundreds of apps
being developed.
Create Your ERC20 Token
Create your own ERC-20 token using your name on Goerli Testnet e.g. ZiaCoin
https://www.smartcontracts.tools/token-generator/create/ethereum/
ZiaCoin (ZIA)
Contract Address: 0x73bf59cE49925b3be66a1c3B0ed1bf9E0a5C23Bb

Transaction Hash:
0x2f8b013a82f6575afd9ca3ddd4a3b8c923ef51970bd7d6ce5bf68072f1c72044
Importing Token in the Metamask Wallet
What are NFTs?
● Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique
identification codes and metadata that distinguish them from each other.
● Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs
from fungible tokens like cryptocurrencies, which are identical to each other and, therefore,
can serve as a medium for commercial transactions.
● NFTs (non-fungible tokens) are unique cryptographic tokens that exist on a blockchain and
cannot be replicated.
● NFTs can represent real-world items like artwork and real estate.
● "Tokenizing" these real-world tangible assets makes buying, selling, and trading them more
efficient while reducing the probability of fraud.
● NFTs can also function to represent individuals' identities, property rights, and more.
● Collectors have sought NFTs as their value initially soared, but has since moderated.
What is OpenSea?
● The world's first and largest digital marketplace for crypto collectibles and non-fungible
tokens (NFTs). Buy, sell, and discover exclusive digital items.
● Is the first ever decentralized NFT marketplace built on the Ethereum blockchain and is
currently the largest.
● OpenSea is a regionalized peer-based marketplace for trading rare and unique digital assets.
● Whether it’s collectibles, arts, or gaming items developed on NFT (non-fungible token)
technology and flow on the blockchain of Ethereum, an investor can buy, sell, and trade
these on OpenSea.
● platform has over 1 million users in 2022.
● It has recently entered the Alexa 500 Most Visited Websites, with a total of 121.7 million
views.
● Over 80 million different types of NFTs are available for trade on OpenSea.
● Over 80% of the free NFTs created on OpenSea are either fraudulent or spam.
https://testnets.opensea.io/assets/goerli/0xf4910c763ed4e47a585e2d34baa9a4b611ae448c/10751184310706239991382795273718732
2873231599781756762181812533941645749518337/
Moved to the Miannet
https://opensea.io/assets/ethereum/0x495f947276749ce646f68ac8c248420045cb7b5e/73782911227094328344895653986009542173
456616826702744110379126603811542532097/
Published Free on Mainnet
What are DAI and USDC?
● Dai is a stablecoin cryptocurrency on the Ethereum blockchain which aims to keep its value
as close to one United States dollar as possible through a system of smart contracts and the
decentralized participants which those contracts incentivize to perform maintenance and
governance functions.
● Dai and USDC (US Dollar Coin) are widely considered to be some of the safest stablecoins.
Here's why. Stablecoins tout some pretty attractive benefits. As a cryptocurrency that's
pegged to an external asset (and therefore stable), stablecoins are framed as the best of both
worlds between traditional currency and crypto.
● Unlike USDC, Tether and the majority of other major stable cryptocurrencies, DAI is
decentralized, which means that no centralized organization controls the supply of new
DAIs in circulation.
● USDC and Tether have a reserve of actual US dollars, bonds and other securities that will
"back up" every single unit of USDC and tether that exists, and is controlled by a
centralized organization.
DAI – Reserves and Liquidity
● The situation of collateral with DAI is a bit different from USDC and relatively
more complicated. DAI tokens are actually over-collateralized in the sense that
for every DAI coin in existence, there’s 150% of crypto assets backing it.
● Compared to other stablecoins which are backed by USD, DAI is backed by
collateral on the Maker platform.
● The collateral is deposited with MakerDAO, which accepts a wide variety of
coins, including: ETH, USDC, etc.
● The price of DAI is maintained through smart contracts, instead of having a
central organisation to keep the price steady.
● This makes DAI a decentralised stablecoin, where it is not being controlled by a
central entity.
Panaverse Stablecoin: TrueBlue
Stablecoins: Everything You Need to Know
https://cryptobriefing.com/stablecoins-everything-you-need-to-know/

Why DeFi Giants Aave, Curve May Want Their Own Stablecoins
https://www.coindesk.com/layer2/2022/08/01/why-defi-giants-aave-curve-may-want-their-own-stableco
ins/

Panaverse DAO Plan Under Development: TrueBlue Coin

https://docs.google.com/presentation/d/1ZY43Sdr4AysDZ0duy1S_XmuUh1tIlqnbk_IWVwIki2g/edit?u
sp=sharing
Challenge Assignment: Create a Token and Become a Liquidity
Provider on Uniswap (Goerli Testnet)
Part 1: Provide Liquidity to a existing pool
Getting Started
https://support.uniswap.org/hc/en-us/sections/8122851346573-Getting-Started
Tutorial: How to Become a Liquidity Provider on Uniswap
https://opensea.io/collection/panaverse

Part 2: Create a New Pool and Provide Liquidity

Youtube tutorial on creating a liquidity pool and coin:
https://www.youtube.com/watch?v=VPWoKAUsMfY
[choose the v3 Pool].
Step 1:Get some GoreliETH to perform transactions
Step 2:Create your coin

.
Step 3: Go to uniswap, click on launch app and go to (pool). And lick on Add a pool

Advanced requirement is that you create a pool of your own Tokens:

https://tokpie.io/blog/how-create-pool-uniswap-erc20-pair/
Publish Challenge Assignment: Become a Liquidity Provider on
Uniswap (Goerli Testnet)

After you have completed the challenge submit the Your Token’s Uniswap Pool URL on:
https://docs.google.com/forms/d/e/1FAIpQLSdmDMFJNmqdQWNr5fKYrSoZ1u6MbZ4anHGU43yAgg
X3j2TXKg/viewform

Also Share:
Twitter and refer to @Panaverse_edu with hashtags #web3 and #uniswap
Like Facebook Page and post:
https://www.facebook.com/panaverse.dao
Facebook Group:
https://www.facebook.com/groups/panaverse
Panaverse Channels on Panacloud Discord Server:
https://discord.gg/GggDkBwJDr
What is Aave?
● Aave is a decentralized lending system that allows users to lend, borrow and earn interest on
crypto assets, all without middlemen.
● Its users do not need to trust a particular institution or person to manage their funds. They
need only trust that its code will execute as written.
● It enables the creation of lending pools that enable users to lend or borrow 17 different
cryptocurrencies.
● Its borrowers must post collateral before they can borrow. Further, they can only borrow up
to the value of the collateral they post.
● Borrowers receive funds in the form of a special token known as an aToken, which is
pegged to the value of another asset. This token is then encoded so lenders receive interest
on deposits.
● A borrower may post collateral in DAI, for example, and borrow in ETH. This allows a
borrower to gain exposure to different cryptocurrencies without owning them outright.
How does Aave work?
● Aave is perhaps best described as a system of lending pools.
● Participants deposit funds they wish to lend, which are then collected into a liquidity
pool. Borrowers may then draw from those pools when they take out a loan. These
tokens can be traded or transferred as a lender wishes.
● To facilitate this activity, Aave issues two types of tokens: aTokens, issued to lenders
so they can collect interest on deposits, and AAVE tokens, which are the native token
of Aave.
● The AAVE cryptocurrency offers holders several advantages. For instance, AAVE
borrowers don’t get charged a fee if they take out loans denominated in the token.
Also, borrowers who use AAVE as collateral get a discount on fees.
● AAVE owners can further look at loans before they are released to the general public
if they pay a fee in AAVE. Borrowers who post AAVE as collateral can also borrow
slightly more.
What is APY?
● APY is the actual rate of return that will be earned in one year if the interest is
compounded.
● Compound interest is added periodically to the total invested, increasing the balance.
That means each interest payment will be larger, based on the higher balance.
● The more often interest is compounded, the higher the APY will be.
● The APY on checking, savings, certificate of deposit, or crypto holdings will vary
across product and may have a variable or fixed rate.
APY Example
If you deposited $100 for one year at 5% interest and your deposit was compounded quarterly, at the end of the
year you would have $105.09. If you had been paid simple interest, you would have had $105.
The APY would be (1 + .05/4) * 4 - 1 = .05095 = 5.095%.
It pays 5% a year interest compounded quarterly, and that adds up to 5.095%. That's not too dramatic. However, if
you left that $100 for four years and it was being compounded quarterly then the amount your initial deposit
would have grown to $121.99. Without compounding it would have been $120.
X = D(1 + r/n)n*y
= $100(1 + .05/4)4*4
= $100(1.21989)
= $121.99
where:
X = Final amount
D = Initial Deposit
r = period rate
n = number of compounding periods per year
y = number of years
Challenge Assignment: Supply and Borrow Assets with Aave
Protocol

Supply and Borrow Assets from the Aave Protocol (on a Testnet)

After you have completed the challenge submit the Your Transaction Ether Scan URL for both Supply
and Borrow on:
https://docs.google.com/forms/d/e/1FAIpQLSdmDMFJNmqdQWNr5fKYrSoZ1u6MbZ4anHGU43yAgg
X3j2TXKg/viewform

Also Share:
Twitter and refer to @Panaverse_edu with hashtags #web3 and #uniswap
Like Facebook Page and post:
https://www.facebook.com/panaverse.dao
Facebook Group:
https://www.facebook.com/groups/panaverse
Panaverse Channels on Panacloud Discord Server:
https://discord.gg/GggDkBwJDr
What is a DAO?
● A DAO, or decentralized autonomous organization, is a blockchain-based organization
that rewrites the rules on leadership and governance. It uses smart contracts to replace
hierarchical structures. Moreover, it allows independent members of a community to
vote on relevant issues, usually with the use of native tokens.
● DAOs have many different purposes and functions. For example, they can be used for
the governance of Ethereum dApps. They can also be used to propose and decide on
changes on any decentralized platform. Thus, they avoid centralized control among
developers or owners. Moreover, DAOs also have a use case in gaming.
● The metaverse, with its vast interactive possibilities, has numerous opportunities for
deploying DAOs. Therefore, it is important for anyone who is into blockchain
development to know how to create a DAO.
Examples of DAO Tokens
DAO tokens are an important part of DAO design and an essential part when you create a
DAO ecosystem. Some of the biggest DAO tokens in the blockchain space today are:
Aave – Aave (AAVE) tokens are used in the world’s third-largest dApp and Ethereum’s
second-largest lending protocol. It facilitates lending and borrowing on the Aave platform,
which already boasts having a TVL of $13 billion.
Maker – Maker (MKR) is used in MakerDAO, DeFi’s largest lending platform. It allows
users to vote on MakerDAO’s parameters, including business logic and risk management
systems.
Uniswap – The Uniswap (UNI) token and DEX are widely popular. This platform has about
$10 billion in TVL currently and is the second-largest DEX on Ethereum. Users holding the
UNI token can vote on new proposals. However, developers still have a significant say on
Uniswap decisions, making it less decentralized than others.
What is Aragon?
● Aragon is an open-source software used to maintain and create decentralized
autonomous organizations (DAOs) on the Ethereum blockchain.
● It offers users a built-in model for the collective management of its code.
● The Aragon network software has three main offerings:
● Aragon client – a toolkit for developers to create customizable online
organizations that aim for more transparent group participation.
● Aragon network – an organization that supports the interactions between the
platform’s community of DAOs.
● Aragon Association – a non-profit that manages and allocates the funds raised
from Aragon’s token sale.
Types of Aragon DAOs?
Company
Use transferable tokens to represent ownership stake in your organization.
Decisions are made based on stake-weighted voting.

Membership
Use a non-transferable token to represent membership. Decisions are made based
on one-member-one-vote governance.

Reputation
Use non-transferable tokens to represent reputation. Decisions are made using
reputation-weighted voting.
Challenge Assignment: Create DAO and Add Members

Create a Company DAO on Aragon Protocol (on a Testnet)

Add 3 or More Members, Create A Vote and Ask Your Members to Vote for it.
After you have completed the challenge submit the Your Transaction Ether Scan URL for DAO Creation
on:
https://docs.google.com/forms/d/e/1FAIpQLSdmDMFJNmqdQWNr5fKYrSoZ1u6MbZ4anHGU43yAgg
X3j2TXKg/viewform

Also Share:
Twitter and refer to @Panaverse_edu with hashtags #web3 and #uniswap
Like Facebook Page and post:
https://www.facebook.com/panaverse.dao
Facebook Group:
https://www.facebook.com/groups/panaverse
Panaverse Channels on Panacloud Discord Server:
https://discord.gg/GggDkBwJDr
What is a IEO?
● In traditional finance, a company might launch an IPO to raise capital, but in
the decentralized world of crypto, how can projects fundraise for new token
launches? Meet initial exchange offerings.
● IEOs take place on cryptocurrency exchanges. Having the initial listing on a
trusted site lends a sense of validity to the new token, which may lead to
people believing the exchange has vetted the project and ensured its
legitimacy.
● The main difference is that instead of taking place on a random website,
sales of new tokens take place on a trusted site. In the case of an IEO, that’s
a centralized crypto exchange, like Binance. For IDOs, that’s a
decentralized exchange, such as Polkastarter.
What is a IDO?
● An IDO is a crypto token offering run on a Decentralized Exchange (DEX).
Liquidity pools (LP) play an essential role in IDO's by creating liquidity
post-sale.
● A typical IDO lets users lock funds in exchange for new tokens during the
token generation event. Some of the raised funds are then added with the
new token to an LP before being returned later to the project.
● IDOs provide a cheap and simple way for projects to distribute their tokens.
● IDOs have been around for a while, but they are still evolving and providing
new models like the Initial Farm Offering (IFO).
What is Polkastarter?
● It is a Decentralized protocol for launching new ideas and is the leading platform for crypto
IDOs, or Initial Decentralized Offerings.
● Polkastarter is the Leading Web3 Fundraising Platform. The platform allows cryptocurrency
projects to raise funds by setting up a swap pool based on a fixed purchase rate for tokens.
● Enabling backers to secure early blockchain investments in IDOs, NFTs and Gaming in a
secure and compliant multi-chain environment across Ethereum, BNB Chain, Polygon, Celo
and Avalanche.
● Polkastarter is a blockchain-based platform that facilitates the creation of cross-chain token
pools and auctions.
● Initial-stage blockchain companies that want to generate cash and quickly distribute their
tokens often choose this method.
● POLS is the native utility token of the Polkastarter platform and serves several functions
within its ecosystem, including liquidity mining, governance, transaction fee payment, and
participation in POLS-only pools.
What is a IFO?
● Initial Farm Offerings (IFO) are a brand new type of token sale event popularized by Decentralized
Exchange (DEX) platforms, IFO's are utilized as a fundraising event for upcoming protocols.
● It is a new type of token sale event popularized by Decentralized Exchange (DEX) platforms.
● PancakeSwap is the most popular of them all, utilizing this unique fundraising event for upcoming
projects.
● Initial Farming Offerings are a brand new type of fundraising activity that uses farming events to generate
funds for participating projects.
● Users can participate in “pre-sales” hosted through DEX’s to get tokens before listing on respective
exchanges.
● Typically the DEX teams will thoroughly vet projects before hosting official IFO’s.
● The IFO process benefits both new projects, Pancakeswap, and its users; the IFO allocates farming
rewards for PCS users while also providing new projects an incentivized liquidity pool on PCS.
● This system allows sustainable yields to be generated for PCS users, and it creates initial liquidity for the
respective token.
Challenge Assignment: Fundraising Presentation for New Web3
Projects

Create a Google Slide Presentation targeting Entrepreneurs who are starting a Web3 project and want to
raise funds for it. Advise them on what are the different alternative available and which one they should
choose and why.
After you have completed the challenge submit the Presentation URL on:
https://docs.google.com/forms/d/e/1FAIpQLSdmDMFJNmqdQWNr5fKYrSoZ1u6MbZ4anHGU43yAgg
X3j2TXKg/viewform

Also Share:
Twitter and refer to @Panaverse_edu with hashtags #web3 and #uniswap
Like Facebook Page and post:
https://www.facebook.com/panaverse.dao
Facebook Group:
https://www.facebook.com/groups/panaverse
Panaverse Channels on Panacloud Discord Server:
https://discord.gg/GggDkBwJDr
What is ENS?
● The Ethereum Name Service (ENS) is a distributed, open, and extensible
naming system based on the Ethereum blockchain.
● ENS’s job is to map human-readable names like ‘zia.eth’ to machine-
readable identifiers such as Ethereum addresses, other cryptocurrency
addresses, content hashes, and metadata.
● ENS has similar goals to DNS, the Internet’s Domain Name Service, but has
significantly different architecture due to the capabilities and constraints
provided by the Ethereum blockchain.
● Like DNS, ENS operates on a system of dot-separated hierarchical names
called domains, with the owner of a domain having full control over
subdomains.
Challenge Assignment: Register Your Domain at ENS
Service

Register Your Personal Domain at ENS Website on the Goerli Testnet

Also Share:
Twitter and refer to @Panaverse_edu with hashtags #web3 and #ens
Like Facebook Page and post:
https://www.facebook.com/panaverse.dao
Facebook Group:
https://www.facebook.com/groups/panaverse
Panaverse Channels on Panacloud Discord Server:
https://discord.gg/GggDkBwJDr
What are SoulBound Tokens SBTs?
● The SoulBound Tokens are the non-transferable tokens representing a person’s identity utilizing the
technology of blockchain.
● Soulbound tokens are just permanent, non-transferable NFTs, meaning that they can’t be given away or
taken from your private blockchain wallet.
● This could include work history, medical records, and any information that develops an entity or a person.
The wallets that issue or hold this type of record are known to be the particular Souls.
● Individuals can have multiple souls or wallets representing different segments of their lives. Such as, you
can have credential sources for your specific history of work and a medical soul, which is referred for the
records related to health.
● The SBTs and the respective souls allow you to develop a significant verifiable, digital Web3 reputation
for your experience and actions.
● SBT will be a token that will be non-transferable as well as one of a kind. The platform of NFT represents
only the property and assets, whereas the SBT will represent an entity’s reputation or a person.
● Unlike NFT, SBTs have zero monetary value; once issued, they cannot be traded in someone’s wallet.
Use cases of SBTs?
● Education History - Your University can be a soul issuing of the SBTs, and you would
particularly like souls on the receiving end. The SBT would effectively store your credentials,
proving that you hold legitimate qualifications and are a member of that respective University.
Simply said, SBT can function as required proof of your attendance at the University.
● Job applications - Hypothetically, as a job applicant, you can submit all your prior work
activities history and the certificate of professionalism utilizing the official SBTs the previous
institutions and companies accounted for. These particular SBTs can function as valid proof of the
number of skill certificates.
● Health records - Switching the healthcare providers or doctors can be generated utilizing SBTs
that hold your medical records. In theory, the SBT can replace the traditional slow procedure of
filling out the documents with paperwork identifying the medical history and going from side to
side with someone on your phone.
● Banks - It enables people to create verifiable online reputations based on previous deeds. This
may simplify monitoring a user’s history of decentralized finance (DeFi) borrowing and loan
disbursements.
How do Soulbound Tokens work?
● Yes, anyone can say they went to Harvard by marking it as their alma mater on
Facebook.
● But with SBTs, Harvard’s “Soul” (aka their private wallet) would have to grant your
“Soul” (aka your private wallet) an SBT of a diploma for you to be able to effectively
make that claim. In this respect, SBTs can be distributed amongst members of a group
or institution as proof of affiliation. This would make it next to impossible for people
to claim false credentials.
● However, what happens when a person or organization sends your Soul an SBT that
you don’t want? SBTs are permanent, so are you stuck with them forever?
● Ideally, no. For the system to work effectively, the team stated that it must include
features that let individuals hide an SBT from public view or destroy it. However,
since the system doesn’t exist yet, the actual mechanics of this remains unclear.
What is a Hardware Wallet?
● Hardware wallets are one of the most secure methods for storing cryptocurrency.
● A Hard Wallet is a physical storage device that stores private keys, tokens, or
cryptocurrencies. These devices may be flash drives or hard disk drives. Hard Wallets
are usually more secure than soft wallets because of its physical offline nature and
portability.
● Although hardware wallets are very secure, they are not suitable for everyone,
especially not for inexperienced users. Typically, a hardware wallet is cumbersome
and includes relatively complex operations and settings that are not beginner-friendly.
● However, if it is peace of mind that you are after and you don’t require the flexibility
that comes with hot wallets, then a hardware wallet is usually the best solution.
How to Use a Hardware Wallet?
Every hardware wallet is a little different, but the steps are generally the
same:
1. Connect the hardware wallet to a computer or smartphone
2. Upon setting up the device, you will need to set a PIN code to add an
additional layer of security on the device
3. The app of your hardware wallet will provide you with a wallet address
(public key) for sending and receiving crypto
4. When you send tokens from your hardware wallet to another address,
confirm the transaction by physically inputting the PIN on the device
5. Wait for confirmation of the transaction
What Is Multisignature Wallets (Multisig)?
● As the name clearly implies, multisig wallets are crypto wallets that need multiple
signatures.
● You would need two or more private keys for signing and sending a transaction with
multisig wallets.
● The most promising advantage of using multi-signature addresses implies the
possibility for two or more users to sign documents as a group.
● The co-owners and the signatories for shared wallets are termed as ‘copayers.’
● Improved security with multisig wallets as they store private keys in different
locations.
● All co-payers associated with the wallet can view the details of different transactions
and funds in the wallet.
● Multiple co-payers have to sign a transaction for sending funds from a multisig wallet,
thereby enhancing its security.
What Is Gnosis Safe?
● Gnosis Safe is one of the most popular digital asset management platforms for
DAOs, with over $90B worth of assets stored in self custody.
● Many DAOs, including Uniswap, Maker DAO, Aave, and Bit DAO use Gnosis
Safe for their custody needs.
● A key feature that makes Gnosis Safe the self-custody wallet of choice for DAOs
is its multi-sig feature, which provides additional security for DAOs to deploy
funds.
● Currently, DAOs can use Gnosis Safe to manage their funds in two ways. First,
they can transact directly with the Gnosis Safe wallet and their ecosystem of apps
called Safe apps. Second, they can connect their wallet of choice with Gnosis
Safe using WalletConnect.
What is a Blockchain?
● A blockchain is a distributed database or ledger that is shared among the nodes of a computer
network. As a database, a blockchain stores information electronically in digital format.
● One key difference between a typical database and a blockchain is how the data is structured.
● A blockchain collects information together in groups, known as blocks, that hold sets of
information. Blocks have certain storage capacities and, when filled, are closed and linked to the
previously filled block, forming a chain of data known as the blockchain.
● All new information that follows that freshly added block is compiled into a newly formed block
that will then also be added to the chain once filled.
● A database usually structures its data into tables, whereas a blockchain, as its name implies,
structures its data into chunks (blocks) that are strung together. This data structure inherently
makes an irreversible timeline of data when implemented in a decentralized nature. When a block
is filled, it is set in stone and becomes a part of this timeline.
How Does a Blockchain Work?
A Visual Blockchain Demo, Watch Video
https://www.youtube.com/watch?v=_160oMzblY8

How Hash Works, learn by doing it:

https://andersbrownworth.com/blockchain/hash

How Block is mined, learn by doing it:

https://andersbrownworth.com/blockchain/block

How a Chain of Blocks is put together, learn by doing it:

https://andersbrownworth.com/blockchain/blockchain

Distributed Blockchain demo:

https://andersbrownworth.com/blockchain/distributed
Public / Private Keys and Signing
Watch Video
https://www.youtube.com/watch?v=xIDL_akeras

Tokens, learn by doing it:

https://andersbrownworth.com/blockchain/tokens

Coinbase Transactions, learn by doing it:

https://andersbrownworth.com/blockchain/coinbase
Addresses
One of Ethereum’s foundational technologies is cryptography

Two types of Accounts

1. Externally owned Accounts (EOA)
2. Contract Account

Ownership of Ether by EOAs is established through

3. Digital private keys,
4. Ethereum addresses, and
5. Digital signatures
Addresses
● An externally owned account can send messages to other externally
owned accounts OR to other contract accounts by creating and signing
a transaction using its private key.

● Unlike externally owned accounts, contract accounts can’t initiate new

transactions on their own
Keys
Private keys are not used directly in the Ethereum system.
◆ Account addresses are derived directly from private keys.
◆ Private key uniquely determines a single Ethereum address, also known as an
account.

Access and control of funds is achieved with digital signature

◆ Ethereum transactions require a valid digital signature to be included in the
blockchain.
◆ Anyone with a copy of a private key has control of the corresponding account and
any Ether it holds.
◆ Contracts account are not backed by public-private key paris
Public Key Cryptography and Cryptocurrency

In Ethereum, we use public key cryptography (also known as asymmetric cryptography) to

create the public–private key pair.

Together, they represent an Ethereum account by providing, respectively, a publicly

accessible account handle (the address) and private control over access to any Ether in the
account and over any authentication the account needs when using smart contracts.

The private key controls access by being the unique piece of information needed to create
digital signatures, which are required to sign transactions to spend any funds in the account.
Digital signatures are also used to authenticate owners or users of contracts

Ethereum transaction is basically a request to access a particular account with a particular

Ethereum address
Transactions
● Transactions are signed messages originated by an externally
owned account (EOA), transmitted by the Ethereum
network, and recorded on the Ethereum blockchain.
● Transactions are the only things that can trigger a change of
state, or cause a contract to execute in the EVM.
● Ethereum is a global singleton state machine, and
transactions are what make that state machine "tick,"
changing its state.
● Contracts don’t run on their own. Ethereum doesn’t run
autonomously. Everything starts with a transaction.
Type of Transactions
Transaction Structure
Nonce A sequence number, issued by the originating EOA, used to prevent message
replay. This number represents the number of transactions sent from the
account’s address

Gas Price The price of gas (in wei) the originator is willing to pay

Gas Limit The maximum amount of gas the originator is willing to buy for this
transaction

Recipient The destination Ethereum address

Value The amount of ether to send to the destination

Data The variable-length binary data payload

v,r,s The three components of an ECDSA digital signature of the originating EOA
Digital Signatures
● Every Ethereum transaction, apart from its actual payload, contains a signature
— a cryptographic proof that the transaction was created by the private key
holder. A signature is unique for each (payload, private key) combination.
● They are used to prove ownership of an address without exposing its private key.
● This is based on mathematical formulas. We take an input message, and a private
key, we get a number as output, which is the signature.
● In order to verify a message, we need the original message, the address of the
private key it was signed with, and the signature itself.
Smart Contract
● When smart people hear the term “smart contracts”, their
imaginations tend to run wild
● A smart contract is just a fancy name for code that runs on
a blockchain, and interacts with that blockchain’s state.
● A smart contract is a piece of code that is stored on an
blockchain, triggered by blockchain transactions and which
reads and writes data in that blockchain’s database.
 Smart Contracts & Solidity
Controlled
By Users
Via Wallets

Controlled
By Users
Smart Contract

● Computer Program
● Immutable
● Deterministic
● EVM Context
● Decentralized World Computer

In the 1990s, cryptographer Nick Szabo coined the term and defined it as “a set
of promises, specified in digital form, including protocols within which the
parties perform on the other promises.”
Life Cycle of a Smart Contract
● Written in a high-level language, such as Solidity
● Compiled to the low-level bytecode that runs in the EVM.
● Deployed using a special contract transaction
● Contract Address can be used in a transaction as the recipient for
Sending funds to the contract or calling one of the contract’s
functions
● Contracts only run if they are called by a transaction
● Contracts never run “on their own” or “in the background.”
● Smart contracts are not executed "in parallel" in any sense
Smart Contract Execution
● Can call another contract that can call another contract, and so on,
● First contract in a chain of execution will always have been called by a
transaction from an EOA
● Recorded only if all execution terminates successfully, other wise Roll
Back
● Failed transaction is still recorded as having been attempted,
● Ether spent on gas for the execution is deducted from originating
account,
● Otherwise has no other effects on contract or account state
Deleting a Smart Contract
● Contract’s code cannot be changed
● By Removing the code and its Internal state (storage) from its address,
- Leaving a blank account.
● Executing an EVM opcode called SELFDESTRUCT
● Costs “negative gas,” a gas refund (Incentive for releasing network resources)
● Does not remove the transaction history (past) of the contract. -
IMMUTABILITY
● SELFDESTRUCT capability will only be available if the contract to have that
functionality.
Solidity
● Created by Dr. Gavin Wood

● Explicitly for writing smart contracts

● The main "product" of the Solidity project is the Solidity compiler, solc,

● Converts programs written in the Solidity language to EVM bytecode.

● Each version of the Solidity compiler compiles a specific version of the

language.
Use Case 1: Contacting External Service

Smart Contract that changes its behavior in response to some external event.
First User Case:
An agricultural insurance policy pays out conditionally based on the quantity of rainfall in
a given month.
Because source is outside the blockchain, there is no guarantee that every node will receive the
same answer.
Possible Solution (But Not Allowed):
The smart contract waits until the predetermined time, retrieves the weather report from an
external service and behaves appropriately based on the data received.
Use Case 1: Contacting External Service

Problem:
Because the source is outside of the blockchain, there is no guarantee that every node will
receive the same answer. Since the smart contracts are executed independently by every
node.

Perhaps the source will change its response in the time between requests from different
nodes, or perhaps it will become temporarily unavailable. Either way, consensus is broken
and the entire blockchain dies.
Use Case 1: Contacting External Service

Workaround:
Oracle pushes the data onto the blockchain rather than a smart contract pulling it
in.

Instead of a smart contract initiating the retrieval of external data, one or more trusted
parties (“oracles”) creates a transaction which embeds that data in the chain. Every
node will have an identical copy of this data, so it can be safely used in a smart contract
state computation.
Use Case 2: Enforcing on-chain payments

Many like the idea of a smart contract which calls a bank’s API in order to
transfer money.

But if every node is independently executing the code in the chain to take out
money from account, The bank account got empty instantly and who is
responsible for calling this API?

Solution:
A bank could proactively watch a blockchain and perform money transfers
which mirror the on-chain transactions. This presents no risk to the
blockchain’s consensus because the chain plays an entirely passive role.
Important Observation

1. Both use cases require a trusted entity to manage the interactions

between the blockchain and the outside world. This creates
centralization
2. An oracle which provides external information is simply writing that
information into the chain. And a service which mirrors the blockchain’s
state in the real world is doing nothing more than reading from that chain.
In other words, any interaction between a blockchain and the outside
world is restricted to regular database operations.
2. Enforcing on-chain payments
Smart Bond:
The idea is for the smart contract code to automatically initiate the
payments at the appropriate times, avoiding manual processes and
guaranteeing that the issuer cannot default.
Of course, in order for this to work, the funds used to make the payments must
live inside the blockchain as well, otherwise a smart contract could not
possibly guarantee their payment.
The above makes a smart bond is either pointless for the issuer, or pointless
for the investor.
2. Enforcing on-chain payments
From an investor’s perspective, the whole point of a bond is its attractive
rate of return, at the cost of some risk of default.
And for the issuer, a bond’s purpose is to raise funds for a productive but
somewhat risky activity, such as building a new factory.
There is no way for the bond issuer to make use of the funds raised, while
simultaneously guaranteeing that the investor will be repaid.
It should not come as a surprise that the connection between risk and return
is not a problem that blockchains can solve.
3. Hiding Confidential Data
The biggest challenge in deploying blockchains is the radical transparency
which they provide.
10 banks set up a blockchain together, and two conduct a bilateral transaction,
this will be immediately visible to the other eight.

Wrong Assumption:

Every Smart contract is owner of its data and it has full control over it.
It's impossible for other Smart Contract to read data directly.
3. Hiding Confidential Data
● If one smart contract can’t access another’s data, have we solved the
problem of blockchain confidentiality?
● Does it make sense to talk of hiding information in a smart contract?

WHY?
The data is still stored on every single node in the chain. It’s in the memory or
disk of a system which that participant completely controls. And there’s
nothing to stop them reading the information from their own system, if and
when they choose to do so.
What smart contract are for?
Blockchains enable data disintermediation, and this can lead to significant savings in
complexity and cost.

In a peer-to-peer financial ledger, each transaction must preserve the total quantity of
funds, otherwise participants could freely give themselves as much money as they liked.
The Ethereum Method
All modifications to a contract’s data must be performed by its code.

To modify a contract’s data, blockchain users send requests to its code, which
determines whether and how to fulfill those requests.

The smart contract for a financial ledger performs the same three tasks as the
administrator of a centralized database:
1. Checking for sufficient funds,
2. Deducting from one account and
3. Adding to another.

Ethereum-style smart contracts offer greater flexibility.

 Panaverse DAO
The Web 3.0 & Metaverse Team

www.panaverse.co
https://discord.gg/GggDkBwJDr
https://twitter.com/Panaverse_edu
https://www.facebook.com/groups/panaverse