RECAP AMA EPID COMMUNITY X PORTAL
🕖AMA Timing : 11th November 2 PM UTC | 9 PM (GMT +7)
🏚Venue For AMA: @EPID_Community
💰Reward Pool : 100$
➡️Part 1: Project Introduction.
Q1: Can you give a brief introduction of what Portal Finance is? What is it aiming to do, and what it intends to solve in this industry?
Our company, Portal -- https://portaldefi.com -- recently announced an ~$8.5M raise to give birth to DeFi built on Bitcoin.
We believe financial applications should be built on the protocol that is most likely to become the base money layer. Portal makes DeFi unstoppable with anonymous, zero-knowledge swaps via the first true cross-chain DEX that’s genuinely trustless. Unlike Uniswap/others, Portal eliminates minting wrapped coins (ie wBTC, wETH) or risky staking with intermediaries. Trading across incompatible blockchains is now just 1-click, trustless and private.
Fabric protocol, our layer 2 & 3 technology powering Portal, enables building censorship-resistant communications, media and one-click cross-chain swaps, all on Bitcoin (along with all its security advantages).
Q2: Can you share some of your background and experience? How did you know and get involved in cryptocurrency? What made you/your team decide to found Portal Finance?
I'm very proud of the allstars I get a chance to work alongside every day:
- Eric Martindale 10 years in Bitcoin, Head of Open Source at Blockstream and Engineering at BitPay, advisor to Lemniscap, and is the inventor of Fabric.
- Chandra Duggirala, Bitcoiner and M.D. turned entrepreneur, ran two 8-figure software businesses, and is the inventor of functional layer 2 cross-chain atomic swaps (he solved problems keeping Tier Nolan’s atomic swaps impractical until now).
- Alexey Melnichenko, 5 years architecting token & exchange design, engineer at Phantom Cyber (acquired by Splunk), designed the exchange engine at Totle.
- Manoj Duggirala Led a 150-engineer team at Invensense, designed the Apple M7 co-processor in phones and watches, ex-IBM Almaden. Engineering at Stanford.
- George Burke, 8 years in bitcoin, 3 exits in peer-to-peer/community startups incl. early bitcoin exchange Crypto Street, created the first Bitcoin debit card, and runs the world’s oldest bitcoin meetup.
- Johnny Dilley, VP of Strategy & Product at Blockstream. Conceptualized Liquid sidechains. Early VC at Pantera. 8 years in Bitcoin.
- Jack Mills, Engineering Architect of Casper Labs / RChain, and previous Director of Enterprise Platforms at Intel. Engineering at Stanford.
Here's how we came together.
Manoj, Chandra, and I had built previous 7-figure startups and wanted to solve problems in crypto. I knew the Fabric CEO Eric Martindale for many years as a friend in the bitcoin space. He was a bitcoin god. Early at a Blockstream and early at BitPay and was one of the few human beings to undestand Layer 2's and sidechains. Eric was first a mentor and advisor to our team. Johnny and Alexey worked with him at Fabric. Later they joined us to build Portal...
Q3: Currently, there are many scam projects that cause investors to lose. So, Why we should choose and trust Portal Finance?
Convincing investors to invest is not our primary objective. Obviously it is a great side effect of our efforts, however we are not in the business of soliciting investors. We are more concerned with developing a product that the community trusts, uses, and, most importantly, embraces. Portal the network doesn't depend on us, and is not controlled by us - the ultimate security. You want p2p systems to be secure against any 1 point of failure. The participants in the Portal network make or break the system- not us. Once it is live, because the community is the wind in the sales, the decentrallized community has complete athourity over the network.
➡️Part 2: Question From Twitter (5 best questions).
This is what is so exciting and unique about Portal Finance "the atomic exchanges". What are "atomic Exchange"? What function do they do? How do users benefit from the use of "atomic swaps"?
First, why atomic swaps?
Atomic transaction means either the entire cross chain contract (typically updating of both ledgers) happens all in one piece. For example, if you "atomic swap" your Bitcoin with someone's ETH, either you get their money and they get yours, or nothing happens. It provides guarantees of a secure execution of an exchange without a trusted third party.
To fix the problems that have made layer 1 "tier nolan" atomic swaps impractical until today -- such as miner front-running, long transaction times, lockup griefing, and all-or-nothing order execution, first we are utilizing Layer 2 for fast communication and coordination, including the ability to recompose orders into smaller chunks to create execution that is fungible, and therefore scalable. It's done through the Fabric protocol (the protocol we use to build p2p ZK circuits for FHE), has been iused to build peer to peer communication and other apps. We utilize Fabric like a Lightning Network that is purpose-built for trading.
Second, we invented zero-knowledge swaps at a layer 3. How can a decentralized exchange layer be truly censorship-resistant if traders are known and addresses can be traced? So, Fabric technology enables ZK circuit creation which, when implemented, opens the door to a whole host of new methods of obfuscating transactions without losing verifiability.
In the current model, the Portal's decentralized network rewards facilitators for the value of the exchanges they facilitate. The fee accumulates in the community treasury and Portal tokens are a claim against the treasury. What is the goal of this type of model?
We must be very careful when describing network mechanics before the public sale in order to keep the digital asset from being classified a security, but here's what I can reveal:
There is a non-security digital asset that runs the mechanics of the network. Portal's protocol does involve facilitators who ensure trades occur. Facilitators may stake the digital asset and receive rewards for their facilitation service. Liquidity Providers (AKA market takers) also receive rewards for their service.
Additionally, we're exploring the ability for certain network-positive actions to be taken that utilizes the digital asset and be paid a distribution of revenue % the network generates. For instance, we were inspired by SushiSwap, with people holding locked positions in $SUSHI get to receive their holding's portion of network revenue. These digital asset models are currently under review by the lawyers for compliance as a non-security.
You can learn more about the network and exchange facilitators in the whitepaper: https://go.portaldefi.com/whitepaper
It strikes me that one of the features of Portal is that it combines the best of Bitcoin and Layer 2, but what is the relationship between Bitcoin and Layer 2? How do they manage to combine the best of both and with what result?
For some background, a layer 2 is a sequence of unsettled transations on the main chain done for a purpose. For example, Lightning Network is a layer 2 system for peer-to-peer micropayments. However, lightning transactions -- until settled -- are not broadcasted to the main chain.
Because the transactions take place in layer 2, you get the speed, similar to lightning network. Also, because of he ZK Swarm structure, partial fills enable aggregating liquidity just like centralized exchanges.
Portal is building a true cross-chain method of trust-minimized exchange without a 3rd party. But because these chains do not natively interoperate or communicate with another, a layer must be built above the base layer for such communication. Portal is a layer 2 system for peer-to-peer cross-chain contracting. Cross-chain contracting facilitates a variety of in-demand DeFi activities, like spot-trading, options, peer-to-peer lending, etc.
In my understanding, Portal is the expression of self-sovereignty. Portal is to crypto trading what Tor is to p2p communication. Portal is an unstoppable p2p exchange. So,how can they mark a before and after in the technological evolutionary cycle of cross-chain atomic exchanges?
For examples of future vision, here are other future applications possible when zero-knowledge atomic swaps reach scale:
Imagine the ability to go anonymous with your payments on bitcoin. Coinjoin-like transaction obfuscation services, but much cheaper, quicker, and actually anonymous because it operates at layer 2 and layer 3 instead of several layer 1 burdensome transactions. Any coinjoin transaction is well-recognized by just looking at the wallet, and could be flagged. Instead, any layer 2/layer 3 obfuscation looks simply like a Lightning transaction despite maybe dozens of participants.
Several blockchains are looking for bridges to swap between their token and bitcoin, but these don't trustlessly exist (yet). We have a few blockchains wanting integration for near trustless swapping and bonding between their token and bitcoin (or other tokens of incompatible blockchains). This interoperability is the holy grail of the crypto space. One partner we can name is Aeternity, another about to be named on Monday, and we will continue name the other partners over time.
Something cool that Fabric's tech and Portal's non-custodial atomic swaps wallet will enable is the ability to make a payment in one asset but the receiver receives a different asset, where it was automatically swapped in the same send transaction. Imagine only holding Chainlink but wanting to send someone Solana. Or only holding DOT and wanting to send someone BTC. Portal will enable this in the future. Can't wait.
Do you agree that the community power will lead to further success of a blockchain project? Could you also please highlight more on the decentralization aspects using your technology? How is your marketing, game and blockchain mechanics different ?
The Portal network WILL BE decentralized, but first is being built by our core team, and soon become open source prior to network launch. Fabric protocol is already open source and anyone can contribute. We welcome you to join us. Check it out: https://github.com/FabricLabs
With regard to roadmap, Portal AND Fabric will be both completely community-driven development. The community will determine roadmap and features post-launch. We're excited to see where the community drives the project as they push the bitcoin interoperability ecosystem forward.
➡️Part 3: Free asking (5 best questions)
Your project name seems to be very interesting. Does it have any story behind it? Can you share us with the inspiron for approaching to this name?
The name Portal stems from our plan to be THE GATEWAY to decentralized finance.
The motive behind Portal is expression of self-sovereignty. Portal is to cryptotrading what Tor is to p2p communication. Portal is an unstoppable p2p exchange.
Our team started in 2018 by building a self-sovereign multi-currency wallet that allows people to trade at many centralized exchanges right from within the wallet interface, but quickly noticed that the biggest point of failure for the entire crypto ecosystem exists at the layer of exchange. So between 2019 through to today, we've been concentrating on making trading coins as trustless as can be and decided to focus on making cross-chain atomic swaps usable, practical, and fast. Portal, at the layer of trade, will free up so much potential within the ecosystem.
For Bitcoin to become money, we need a censorship resistant, peer to peer trading system that crosses blockchains. That's why we are building DeFi using cross chain atomic swaps. BItcoin is strengthened by building many layers of functionality.
What is PROJECT's revenue model? In which ways do you generate revenue/profit?
All facilitators get paid based on the value of trades they facilitate. Our revenue is tied to the growth of the network and userbase. Every wallet downloaded can be configured to run a facilitation node. The whitepaper goes into revenue for Portal and revenue for facilitators more extensively. Please see the whitepaper at https://go.portaldefi.com/whitepaper
What are the key milestones on your roadmap - both things you have already achieved and things that we can look forward to? Any partnerships and short/long term technical milestones that you want to talk about or bring some attention to?
Before roadmap, let's start with accomplishments so far: We invented zero-knowledge swaps, which fix the Layer 1 "Tier Nolan" atomic swap problems. In addition, our CEO invented the Fabric protocol (the protocol Portal uses to build p2p ZK circuits for Fully Homomorphic Encryption), and has been used to build peer-to-peer communications and decentralized other apps.
With the atomic swaps integrated into Fabric, we are rebuilding the Web from client server model to an uncensorable, decentralized architecture.
As for roadmap:
1) We can announce that in only a couple of weeks we are launching our public sale on one of the most prestigious launchpads in the world, Republic, and unlike most other high profile projects, we are allowing investors from the US. If you'd like to participate, you'll first need to be on the whitelist, available at https://go.portaldefi.com/whitelist. Can you believe there's already almost $400M in investor interest!!??
2) We announced a partnership with Æternity as well as Ankr. We will also be announcing a number of partnerships with other tier 1 blockchain issuers over the coming weeks.
3) On the regulatory front, we have been seeing SEC lawsuits to various token projects for raising on an unregistered security; potentially fraud. This can result in a fine of millions or send teams to jail. Any issuer who promises an investor tokens is irreparably tethering the network token to the fundraise and will forever make that token a security. We will see any tokens deemed securities to be banned from trading on non-brokerage exchanges (which is pretty much all of them). Our fundraise is specifically designed to preserve the non-security nature of a digital asset that runs on the decentralized network, and therefore is never sold, given away, airdropped, etc. This way it can always be as freely transferrable as BTC itself.
4) Last, with regard to roadmap, Portal is a completely community-driven development. The community will determine roadmap and features post-launch. We're excited to see where the community drives the project as they push the bitcoin interoperability ecosystem forward.
Ambassadors play a very important role in every project, Do you have an ambassador program? If yes, How can I be one ?
We do have an ambassador program. Just launched, actually! We welcome your cooperation in growing Portal here: https://go.portaldefi.com/ambassadors
Can you explain how is your Tokenomics Distribution? How many tokens Will be minted ? And How many tokens Will be locked by the team?
We cannot discuss tokens or token price. Why? On the regulatory front, we have been seeing SEC lawsuits to various token projects for raising on an unregistered security; potentially fraud. This can be as little as a fine of millions or as bad as going to jail. Any issuer who promises an investor tokens is irrepairably tethering the network token to the fundraise and will forever make that token a security. We will see any tokens deemed securities to be banned from trading on non-brokerage exchanges (which is pretty much all of them).
Instead, Portal's fundraise -- HAPPENING NEXT WEEK, through a compliant securities offering on the best lauchpad in the world, Republic -- is specifically designed to preserve the non-security nature of a digital asset that runs on the decentralized network, and therefore is never sold, given away, airdropped, etc. This way it can always be as freely transferrable as BTC itself.
We are also under embargo from discussing anything about exchange listings. All I am allowed to say is that there are a number of top exchanges who invested in Portal, including OKEx and Coinbase. We're excited to have close relationships with them and that they believe in Portal. Take that for what it's worth.
For more info on this, see the writeup we did on this compliant fundraise model here: https://blog.portaldefi.com/no-ico. Compound and Chia used a similar mechanism.