Itheum Discord Audio AMA #2 — Recap
Itheum hosted its second audio AMA on Thursday, May 5th at 12:00 PM UTC. Community members joined us on our Discord channel to listen to Mark & Praveen Paul, our founders, talk about the ITHEUM token utility and other topics surrounding our project.
We want to thank everyone who joined — it’s always great to connect with our community members and fans!
Below is a full recap of the event. You can also listen to the recording on our official Spotify channel.
Mark Paul: Okay guys and girls, thank you so much for joining. I think we are ready to start now. Hi, everybody. My name is Mark Paul. It’s great to be here with you all. We love doing these AMA’s directly with our community. Today I’m joined by co-founder Praveen, who is also online here. Praveen, I’ll let you say hi.
Praveen Paul: Hi, everyone. Excited to be here in the next AMA now post our DEX listing. So certainly, looking forward to this session with all of you guys some good questions. So let’s get started.
Mark Paul: All right. Thank you everyone. So we collected some questions prior to the AMA from Twitter and from Discord as well. We are going to basically juggle between the questions we collected as well as questions that are going to be popping up in the live chat. I believe you can ask a question within Discord itself and we’ll pick up live questions as well. So there is an AMA questions channel in the community corner, so just drop in your questions there and we will pick them up as we are answering them. So let’s get started. I’ll let Praveen answer the first question about the DEX listing. Praveen, do you want to take that?
Praveen Paul: Yep, definitely. I guess starting off with the elephant in the room I suppose, so it’s good to have this question first up. I know the DEX listing went quite well. And obviously, there are some questions around that too which we’ll address, but yes, obviously the first centralized exchange listing is not going to be far off. We’ve got multiple discussions happening. In fact, we had multiple discussions happening even before the DEX listing, but we wanted to do the DEX listing in a safe way that it will help everyone participate in a fair manner. So stay tuned. We can’t share much news right now, but it’s definitely a work in the progress, it’s definitely coming and I’m sure it’ll just keep going on and on from there. So thanks for that question.
Mark Paul: Yep. Thank you. Just to add to that definitely right that’s our strategy would be to do our DEX listing as soon as possible. So not just to sit on the DEX listing, the idea is always to open up the ability for people from not just to who are very familiar with Elrond, but other ecosystems and other chains where Elrond might be something new for them. We want to welcome them into the Itheum ecosystem and also the Elrond ecosystem through a centralized exchange listing. So definitely a very high priority for us. And we are working very heavily on it as Praveen mentioned. Let’s jump to another question we got prior to this. The question is from Seoff Haley.
What would Itheum say its key strength or differentiators are as a project among Web3 metaverse projects? How does Itheum intend to have continued competitive advantage over their peers?
Mark Paul: Okay, thank you for that question. So Itheum is a data protocol and how we are very different from the other blockchain data protocols are we are focusing a lot on personal data. Our methodology is in Web3 and crypto, if you want more advanced use cases, whether it be in DeFi or metaverse or just any Web3 vertical, you cannot escape the fact that you need to bring in personal data. And the example we always give you is what if you want to get a home loan on a DeFi platform. You’re not going to be able to do the kind of lending that you do now using your pseudonymous identity. You’re going to have to at some point expose your personal data. And this is where Itheum comes in. It lets you take your data into Web3, lets you own it in your wallet to tokenization, and then sharing with who you choose to share it with and then stop sharing when you choose to when you want to stop sharing.
So our value proposition is it’s really going to enable this personalized Web3, personalized metaverse experience, which is quite a huge sort of vertical to get into. And like I said, we are focused on personal data and I don’t believe there’s anybody else who’s looking at how to bring in personal data into Web3. But that being said, Itheum’s always had an approach to bring this into the mainstream and has always been aligned with making it fun, viral, and very interesting and easy to use. So we don’t want to make it so boring that you don’t want to participate. So our value proposition is always around our NFMe ID avatars. This complex data peer-to-peer protocol is abstracted with this very fun to use an engaging 3D avatar, which is an NFT. So you claim that NFT as your identity within the Itheum Data DEX and you link your personal data to it.
And it’s amazing. If you think about it, you are engaging with this really interactive 3D avatar, but what you’re actually doing is you’re taking ownership of your data. So our narrative is always make it fun — if it’s fun, then people will use it; then you can’t ignore it. The adoption will grow because the data sets that are entering the Itheum platform into Web3 is going to grow significantly. So that’s our philosophy around this. I’ll hand it to Praveen to take the next question.
Praveen Paul: Thanks Mark. So that was an interesting one about the differentiating factors for sure. So moving on now. So we have a good question where we’ve got some interesting emojis attached to it as well.
Why did the private buyers buy at $0.02? What did they contribute to the project? Why did the price discovery mechanism fail and why did the price drop 30%?
Praveen Paul: So, a lot of questions going on there, but firstly, let me just go through one by one and try and shed a little bit of light. But of course, as with any crypto project there are private phases and there are public phases. And for any project to be successful, obviously we need investors who invest in the project that helps us deliver the tech that we actually planning on doing. And it’s very important that investors who believe in the project actually and can provide connectivity and also contribute to the growth of the project actually come in at an early phase.
And that extends that initial phase there. And we were very conscious of the investors that we chose to work with. We picked investors that always have long term intentions in mind, that are very supportive of the project, that believe a lot in the project. And we were very conscious of that when we went through that initial phase and we are happy to say and happy to know it as well that even after the whole listing process that they continue even today. I had two calls with our investors and they were very keen to know how they can help us, how they can basically ensure that we continue to deliver and achieve the vision of basically providing this sort of a personal data platform built completely on Web3 that’s going to benefit everybody down the track.
So the other questions, I’m sorry to hear that you thought the price discovery mechanism was a failure, because in contrast a lot of the feedback that we got or was positive in the sense that in comparison to other projects the amount of volatility and the amount of stability that actually the process entailed did ensure that the price was nicely sort of built up to a certain point. And then there were very little negative things that happened. And not that things didn’t happen. There are certain things that may have happened, but the whole process and the whole listing process did ensure that it was a fair system for everyone and ensure that everybody had a good opportunity to take part and be in a project that went through a very smooth listing phase. Right now token volatility is always going to be there.
So the dropping price really has to do with the crypto ecosystem in general. I’m not a financial advisor and I don’t provide financial advice, but you can actually just check the trend of Itheum compared to the mainstream coins like for example, Bitcoin or Ethereum. You will see it fluctuates in a similar manner because obviously, it’s just the nature of the industry, right? So starting to hear that you didn’t see it as a success, but probably 99% of those that we spoke to as well as a lot of feedback that we got from the community did in fact tell us that they were quite happy with the whole process. Even though it was a complex process, they were quite happy and the outcome was favorable to most, so over to you Mark.
Mark Paul: Thank you, Praveen. That was a good question and very good response as well. So I’m going to take a question from our live chat. It’s a bit of a technical question, which I love. So I’m going to read this. This is from Fortes.
Do you consider Itheum a Web 3.0 blockchain? If yes, will the solidity contracts be easily migrated to Itheum blockchain? If no, what language will smart contracts be built in?
Mark Paul: Okay. So let me clarify the tech stack a little bit. So Itheum is not a blockchain. It is a smart contract based protocol, and this is purposefully built this way. So we don’t have our own nodes. We don’t have our own validators, our own consensus mechanisms. We are a multi chain protocol that follows a primary chain and a side chain design. The primary chain as you or everyone will know is Elrond.
And we picked Elrond and we were always open about why we picked Elrond — it’s because their tech stack is well suited to enable Itheum vision to be a very highly used data protocol. For that to happen, we need very fast transaction speeds, high throughput, low transaction costs. And these are the things that are very prevalent in Elrond ecosystem. But prior to actually coming into the Elrond ecosystem, we had already deployed some of our solidity smart contracts to a bunch of Itheum chains like Polygon, BSC, Ethereum, etc. So we are going to be a multi chain protocol that’s going to let you create data in different chains. The real challenge here is… and the question is, are we going to be a cross chain protocol? In other words, could you put some data for sale on Ethereum and then buy it on Elrond and vice versa?
This is very difficult to do, and very challenging from a security point of view, because it involves bridges and relays which, if you guys know, these are the elements that get attacked all the time and drained of funds. So we are going to be multi chain and our long term objective, when the technology gets more robust from a security point of view, will become cross chain, because we are dealing with personal data we cannot be biased towards a chain like you might have one human who’s using Elrond and another who’s using an Avalanche and we should be allowing them to trade with each other. So this is why we are a multi chain protocol. So to clarify, we are not a blockchain, we are implemented in the smart contract layer. That being said, there are some features within Itheum’s roadmap specifically around per user encryption schemes, which do require native integration into a blockchain node infrastructure.
So this is something we have started to think about how we can implement this, because it cannot be implemented in smart contracts. It has to be implemented in the node software. So we started thinking about which could be work closer with the Elrond core team and add our desired sort of feature set into the nodes and then leverage on that. But we do not want to just build another blockchain that would be just kind of pointless because there’s already many good blockchains out there including Elrond. So that was that. Praveen, over to you.
Praveen Paul: Yeah. Thanks Mark. I mean, there are a few questions revolving around I guess, the token utility and also the size of the team and other projects coming up or partnerships coming up. I think these are good questions. So from one user, and I’m picking a couple here because there are a few questions here. So basically what we are looking at is, I mean, first of all, the team we’ve been building for a while. We have ramped up the team significantly over the past month not just we didn’t wait for the DEX listing to happen. We obviously started ramping up our team beforehand. So we’ve got over 15 members in our team now and it’s growing predominantly around the tech part where we actually adopting a lot of the Elrond tech in addition to, of course, working on business developments and partnerships.
So we’ve got two very switched on business development team members who’ve just recently joined our team. They’ve been with us for about a month now. So we’ve been working on a lot of partnerships in the background. And this is where I think the power of Itheum is going to be, is in how we partner and how we leverage what others are doing from an infrastructure perspective, as well as from a contribution perspective. How we can provide Itheum tech to them to basically streamline what they’re doing. So as you guys know we’ve got several use cases, but the core ones for us being the gaming and the gaming guilds, as well as the health angle/ So we’ve got in parallel close to around 30 odd partnerships that actually sort of brewing in the background. So we are working on these, we’re bringing these up.
So you will see over the course of the next few weeks on a sort of a two to three week basis, we’ll be announcing partnerships and you’ll understand how we are progressing as far as providing the utility to the token, as well as how we are empowering other crypto projects with our player passports, with our health passports for them to achieve what they are setting out to achieve by not having to have to reinvent the wheel. So there’s plenty of interesting stuff coming up. We are just getting started. We’ve got a long road ahead of us and an exciting one because it’s going to be something that is going to benefit everyone in the space. It’s basically a project for the people in terms of claiming your data and owning it and being able to do something with it.
So exciting times ahead, lot of stuff coming up. We will obviously keep pushing this out to you. And once you start seeing that in coming to fruition you’ll understand why it was a very positive thing. Being an early adopter, an early token holder, you will come to value your tokens a lot more. So certainly looking forward to it and obviously, suggestions from the community are always welcome on how we can do better, how we can… what partnerships you guys think we need to build. So looking forward to more that’s coming up and as time goes by, this will sort of become a lot more clear to you as well. So okay. Over to you Mark.
Mark Paul: Thank you. I’m going to pick up the next question, which is a very, very interesting question from Dr. Gravis. And this it’s quite a long question, so I’ll read it fast.
I’m always wary of projects using hype words like metaverse and Web 3.0. You use metaverse as well, as that makes me wonder as to what you guys see as the metaverse. At this point, metaverses are created by a project to work on a certain chain. Most chains could have different metaverses, so far there is not one overlapping metaverse for everyone to connect to from different chains. As an example, we all play different MMOs that control their own environment. There is not only one MMO out there being played by every single person is what I’m getting at. So TLDR, what do you guys see as the metaverse?
Mark Paul: I love these kinds of questions. So there are a few things here that you’re getting at. Firstly, what is Itheum doing in the metaverse? And second, maybe prior to that, what does Itheum consider to be the metaverse? So let’s address that. So what do we think the metaverse is? Well, it’s nothing more than the next version of the internet that you and I are using. And what do I mean by that? Let’s rewind two years from now prior to the COVID-19 pandemic, and you would see that there were a lot of things we were physically doing. We were going into our office, we were getting healthcare by going into a clinic, we were going into retail shops a lot more. We were going to restaurants a lot more. And then in a very short period of time, because we couldn’t do that, we literally just went almost completely virtual on a lot of these aspects.
We are working from home. We are getting telehealth now in a lot of countries, we are ordering our food. We’re getting stuff delivered a lot more. So we’re very close to this next leap where almost everything is going to have an equivalent version in a virtual world. Because what humans like to do is make these sort of processes more engaging. So if you’re looking at an eCommerce site, the best way to make it more engaging is to put it into the metaverse so you can walk into it. So this is kind of how this tech evolution happened, and what’s happening is it’s growing significantly faster than it used to because of the changing global circumstances that we see around us now. So the metaverse is nothing more than this continuous, very fast evolution of virtual worlds on the internet.
And you could also look at it as I mentioned that there is now going to be a new immersive layer to it, whether you’re wearing VR headsets or you’re just using a browser to go into a 2D type metaverse on your screen, it’s still a virtual version of what’s happening out there. So Itheum talks a lot about mirror humans. In other words, you have your physical human self in the real world, and then you’re going to have a mirror human. And we use mirror human, because what we are trying to do is mirror your data into the metaverse. So if your health data in the real world is in your app and maybe somebody else, some organization is taking it from you, we want to give you ownership of that and then you take it into your meta and you can use it to trade your data.
The example we always give is in retail. If you see a lot of these stores like H&M and Nike and they’re already setting up, they have retail stores in metaverse. So we would let you take your personal data into it, and then the store could have some personalized content for you. So now the second part of your question is there is not one metaverse across different chains. Well, not yet anywhere. So if… let’s take an example — you look at The Sandbox or Decentraland. So these metaverses exist in a specific chain. And then you’ll see metaverse projects popping up in different chains. But what’s the fundamental principle of the metaverse is not the actual metaverse itself, but it’s the NFTs within it because the NFTs are what give you ownership within the metaverse. And NFTs and other tokens that are used within these ecosystems, they are quite interoperable.
So ERC-20 tokens, you could bridge them between different platforms and NFTs are also now becoming interoperable. There are some sort of technology platforms that let you bridge your NFT from one chain to another chain. So when these fundamental elements become interoperable, there’s nothing stopping the UI layer from being interoperable, because that’s just a UI layer. The actual transactions, the actual tokenization, the actual NFTs, and all of these would eventually be multi chain or cross chain as well. So we are not too far away from this. You’re going to see lots of progress. If you follow what’s happening with The Sandbox, they are allowing… they have an SDK for you to build into their metaverse. And you see a lot of the new games that are coming out, which have cross chain tokens. You actually earn your token on one chain and then you claim it in another chain.
So these things are happening very, very quickly. And Itheum is basically just doing the same thing. What we are doing is we are saying, “Okay, this evolution is happening.” And what’s going to happen is you are the only… you are the uniting factor here, you are the one going into different meta platforms and games. So we let you take your data with you wherever you go. So this is why we say the Itheum lets your own and trade your data in the metaverse, because it captures pretty much everything what we are trying to do. Give you ownership of your data as you move between different metaverse platforms across different chains, etc. So thank you for your question. That was a really good question. Praveen, over to you.
Praveen Paul: Okay. Thanks. So yes, a few questions here. So let me pick one.
There’s one about why we chose Maiar and the Elrond network.
Praveen Paul: And yeah, I think this is always a good question and I’ll give my take and I’m sure Mark will have his take as well. So I think for many reasons, so we picked this network. It is a new network, it’s a very up and coming network as you guys know, very fast, good gas fees and especially in a project like us, when it comes to trading data we want these factors. Because they’re quite critical to enabling speedy and cost-efficient trade of data between parties. But what’s greater? From my perspective what I thought that was really nice about Elrond was they saw our vision.
They saw our vision of data ownership and that’s what they really liked about us and about our project. And their entire ecosystem is built around that vision of basically empowering people in the metaverse as with the previous project that launched, which was a metaverse project and to do with cars and stuff like that. Really amazing just start to the whole journey of launching projects. Then they had a bunch of payment systems that they actually have put in place. So I would suggest you do watch it, but there is during the Binance blockchain week when the Elrond team actually presented the Elrond vision in Dubai. So there was a specific section where they spoke about how the whole ecosystem comes together. How the metaverse comes into play with Holoride. And sort of what they’re doing to empower people in the metaverse. How their payment gateway systems and all of their financial payments, their acquisition of Utrust, for example.
And also the other banking platforms that they actually have set up. So how all of these systems put together in combination with what Itheum is doing as far as empowering people with data ownership and the ability to trade their data. Coming together in this ecosystem enables everyone to work in collaboration. For example, we could work with a payment gateway system to empower people to also potentially down the track trade in vit as far as the pricing of data is concerned as well as the trade of data is concerned. So that was one thing that was really nice with their system, their leadership team completely believed in it. And they’re very structured in the way they do things.
And the whole price discovery mechanism or how they handled it. And it was all to do with the community’s best interest in mind. And that was one thing that we really loved about the Elrond team, is they always were community first. And that was something that we also firmly believed in. So all of these factors were sort of fell in place. And obviously we worked well with the teams, the teams worked well with us and we executed things quite well so far. So maybe Mark, you also had a few things you could share too I think it’ll be nice.
Mark Paul: Yeah, no, I think you captured some of the key things there. On top of that from a technology point of view, which is where I come from I first observed Elrond like eight months ago when they were very sort of early, and you could just see that they were putting in these core building blocks that the other chains seem to be ignoring. So Elrond, we always said was focused on the product and the tech and not so much on marketing, whereas we felt some of the other chains were focused on the marketing and secondary product and decentralization. So I was always a fan of the Elrond tech even before we started speaking to them. And then when we started speaking to them, we realized, “Okay, totally they just got our vision almost very quickly.”
And basically, they have been thinking about what’s the next evolution of the internet, the open web. And they saw these core building blocks and they saw how we fit into this sort of core building blocks. So we are so happy to be working with them. I think they’re a brilliant team. And yet we will continue to kind of work with them, but also we just love the Elrond ecosystem and the community they’ve been so supportive to us. All right. So I’ll take another some really good questions on the Discord channel. Okay. So this is another a long one, but I think it’s important. It’s a tech related one as well. This is from John Recrypto.
Are you planning on building a data marketplace exchange in which individuals can offer and exchange their private data for money/tokens? Or are you planning to rely on NFT marketplaces already in place? In other words, are you planning to coordinate creators and consumers of data? And there’s a second part of that. Lastly, in your Tokenomics 101 published today, are you implying the value? You were implying the value of data as linked to the price of your token. However, if your token tanks the price of the data should not drop in value in relation to the USD stablecoin. How do you protect the value of individual data?
Mark Paul: Well, such a thought-out question, and I’m so glad you read our Tokenomics 101, which we pushed out today. So to answer your first question. Yes, Itheum is going to be a data marketplace and exchange. What we’ve actually tried out in the testnet now you can do that.
So you can take your personal data, whether it’s through a data cap app built on Itheum or just any arbitrary data set, you can put it up for trade and then trade it as a data pack in a peer-to-peer marketplace or a data NFT within our data NFT marketplace or you can take it to secondary markets like OpenSea and you can also trade it there. So what we are building is that all of these commands our Data DEX ecosystem.
So we are putting in place these sort of building blocks that let you do a lot of these things. For example, onboard your data into Web3, claim ownership of it, print it as an NFT, attach your RDs to NFT, align to a Data Coalition DAOs so you can bulk trade your data. So once we have all these building blocks, what’s interesting is when we talk to the partners we are partnering with a lot of them say, “Wow, this is great, but I would love to do all of this within my ecosystem rather than sending my users to Itheum.” So then it got us thinking, “Okay, cool.”
I’ll give you an example. If we are talking about our Player Passports, which is one of the first products we’re going to release, this is going to empower gamers in Web3 to own their data as they move between games and guilds, etc. So the guilds we’re talking to are saying, “Well, this is great, but we really don’t want to send our guild members in Discord to Itheum to do a bunch of things.” And maybe they’ll come back maybe they won’t. So what we are thinking now is, “Okay, how do we provide the core features and let you white label it? And you install it within your guild as a bot, or you install it within your apps and your UIs and your front ends and your decentralized apps.” And then Itheum is effectively doing all the heavy lifting behind the scenes, behind your branding.
And then we started realizing we are enabling this personal data to move to Web3 and the metaverse, but maybe what we can also do is allow people to brand our technology and let it run as a core infrastructure. So what this involves is effectively we’ll have our Data DEX and you can come into it anytime and do everything. But we also started thinking about wrapping all of these as components in an SDK and widgets. So you can literally drop, if you’re running a guild you can run the Player Passport product as a bot within your guild, and everything is handled within it. Or if you’re running a DeFi platform and you want to get some personal data from your users, you drop an SDK, which is there and then that collects some information of attaches it to a data coalition all within your ecosystem.
So we started considering what would it look like if people want to integrate within their ecosystem. So yes, we are going to sort of answer your question. Yes, we are going to coordinate the data creators to find the data consumers. We will do that natively in Itheum Data DEX, but to really grow up platform for the wider adoption. We will think about how do we create an SDK on this, so you can implement this in any platform. And now we are at the tokenomics question. So in our tokenomics, it was around the utility of our token, but we also spoke about… we very clearly explained our cliff, vest, and unlock cycles because a lot of people asked us this question, but we were very open about it. And if you go to our article on our blog we clearly explained how this process works.
And then we explained why we did this specifically the unlock. So even after the tokens come out of the cliff and are ready to be rested, they unlock in like three-to-six-month blocks. They’re not unlocking daily, they’re unlocking at like… and this is because we want to be able to know when there is going to be new supply coming into the market. And we related it to the fact that the ultimately in Itheum the data pricing is going to be very different to the data pricing models of other data projects, where in Itheum we feel like when it comes to something like data, which could have subjective pricing was this objective pricing. The data value is actually linked to the use case. We link the actual pricing of data to the Data Coalition DAOs, because they are going to be trading specific types of data.
As an example, there’ll be a Data Coalition DAO set up by a research institute, who’s interested in collecting DNA data, and they understand what the value of this data is. So they set the price and they set the price in ITHEUM tokens. So if we were having a highly volatile token, it’s going to be hard for them to actually set this price. So this is why we try to plan our even unlocking investing in a way that is predictable when there might be fluctuations, and then people can adhere to that. That being said, we are open to looking at different ways to stabilize the price of data.
There’s some interesting projects coming out where you can collate the value of data to something like a stablecoin that’s backed by the demand for data. There’s some… it’s very early, but still is quite interesting, but we still feel like for this to really work out and for this tech to be adopted, there needs to be someone who sets the price of data at least initially. And this is the Data Coalition DAO, which is the decentralized entity that sets the price of data for that DAO. And then you can choose to go and align to it and trade your data with it. So, yes, this is how we linked the price of the Itheum token to the price of data and the importance of why we need predictable supply and demand unlocking of tokens. Over to you Praveen.
Praveen Paul: Cool. Thanks. So I think that response sort of answered some of the other questions to some extent, but there’s a very well thought out. I am so sorry, I can’t pronounce your name, but you’ve got a four part question that you’ve actually written out, which is really well written and cover and asks various angles. So I’ll answer some, and then I’ll get Mark to chip in as well.
Guys, please tell me about the postnatal depression tracker, the pet seizure tracker, all of the pre-existing products that were actually there and we’re feeding data into the data cap.
Praveen Paul: So, you’re asking about them and what have they got to do with the Itheum token? It’s a good question, right? Why are those things there and why do they exist?
And why have they existed before we actually launched the token, and how are they going to contribute in future I suppose to the token? So essentially at its core, it’s a data platform and for a data platform to be successful it has to ingest data from multiple streams, right? And these actual apps that you’re actually talking about can be Web2 apps and they can be Web3 apps. So the Web 2 apps that your particular leads specifically talking about were built before, but were built with Itheum as the core in the center. So it was essentially receiving data from all of these various platforms, ingesting this data and essentially tying that data across to an individual that’s actually on the data DEX.
So that was just the start. Now there are going to be many such platforms that will actually start feeding data into Itheum’s Data DEX. And that’s how through various means it could be apps. It could be an adapter type setup. It could be from Discord. It could be from Telegram. It could be many different methods in which data is ingested. And I would strongly suggest if you haven’t done already to try out the Data DEX. I think if you go and try it out, you will get a better understanding of how the data can be harvested, how the data can be connected to your profile, how the process is to mint the Data NFTs. So those things you can actually try out yourself on the testnet, and that will give you a better idea how the data is pulled from all of these apps.
But this is what we are working on in terms of partnerships. Moving forward, talking to various health setups that have data such as what you mentioned in the second part of your question and which Mark touched on earlier DNA data. There are entities already that are collecting DNA data and other types of complex data such as this that need a platform. They understand the concept of being able to monetize this data and they want patients to be able to get something out of providing this data too. So we are speaking to platforms, we’re speaking to organizations that actually do have a vision of empowering their patients to be able to utilize and benefit from this data. And they’re from non-crypto backgrounds. So this is where we’ve got to act as a bridge to help them understand how crypto could be beneficial to those who are actually willing to share data on a platform. So Mark, maybe you can also talk a little bit about because I think this is a really great subject matter to talk a bit about.
Mark Paul: Yeah, definitely. So Itheum… the thing that differentiates us from the other data projects is that we don’t believe that all data has to enter Web3 and be traded in data marketplaces. There’s just too much data. So one of Itheum’s design philosophies is structured outcome-oriented, valuable data and insights are what need to be brought into Web3 where you can claim ownership of it and trade it because this is the data that has value. And that’s why we have all of these apps that are built on a data cap, which you mentioned. Okay, Praveen has read our challenge. These were partner projects. We did demonstrate that you can collect structured highly valuable data. The Red Hat challenge collects cardiovascular health data, very structured outcome-oriented, and valuable because it shows you some good insights, but it’s just not health.
We are building the Player Passport, which has an app as well. And the Player Passport is going to be collecting structured data about gamers. We’re going to be collecting how their Discord interactions, and how they’re interacting with the community on Discord within their gaming guilds, obviously all of this with consent from them. And also we are tracking them with their on-chain addresses how well they’re playing different games, how quickly they earn, and what they do with their earnings. So all of this is like structured outcome-oriented data, which is why we built the data cap. The data cap is going to bring in all of these valuable data sets and not just every bit of data. So yeah, that’s the use case of that, and we have a bunch of apps where you can try to, but we’re working very heavily on the discord, sorry, the gaming passport.
So if you guys are gamers, just we started a new channel in our Discard. You guys can join that because that’s going to be the place where we coordinate our proof of concept gaming passport. So there are channels, the Itheum playground that we got a bunch of games that we already started integrating with. So definitely stay tuned for this. So I’m going to take a few questions that came in earlier that are all interrelated. And I’ll start with one from Sim, which is a question that is very relevant because we do get that along.
I struggle to explain the Itheum project to people not familiar with the crypto world. How would you describe your project and what makes you different to a five year old kid?
Mark Paul: Five year old kid is a bit of a challenge, but one of the feedback we get is it seems like we are very ambitious.
We have a broad project and yes, we have a broad tech stack. And what we are doing is fundamentally we are trying to shift the concept of data ownership. That’s why it’s so broad, but how would you explain this to somebody who doesn’t understand it? Well, we just tell them your personal data is already being taken from you and traded in a $200 billion market, and you probably don’t even know about it. Well, if you do know about it, then would you do something about it? And I think when you explain to them that they’re already been exploited, that they’re already having their data taken for them and their data has value, then they want to do something about it. And that’s when they use Itheum, because Itheum lets you claim ownership of your data. So that question I’m going to jump to the next one real quick as well.
What is your target in year one? Can you list on Binance in year one?
Mark Paul: And the second question is Adrian Popa.
When do you estimate your level of working productivity to be launched?
Mark Paul: Okay. So they’re kind of related so I’ll take them both. So I mean, of course as probably mentioned, we are talking to a bunch of centralized exchanges. We are definitely going to do that soon. We believe as I said, we need to get our awareness out to broader than just my DEX communities. So yes, and our target for year one in our town hall two weeks ago we explained our six to 12-month roadmap. There are four projects we are actively working on. The first one is our Discord, sorry, our gaming passports or Player Passports, which as I said would give you as a Web3 gamer ownership of your data.
If you’re wondering, why is this important to me? Well, it goes back to my previous answer. Your data has already been taken from you and you join a guild, your data’s taken from you. And you would be shocked to know that a lot of the forms that you’re filling in these guilds and stuff, these are being shared with other guilds behind the scenes. So definitely should be concerned about that. We are addressing a problem already in Web3, especially in gaming. And we want to give you if you’re a good player or you are player or gamer who plays a lot, whatever you do you’re going to play ownership of your data through Itheum’s Player Passports. You’re going to have a very cool NFMe avatar that you’re going to own, which is going to be a key to your data. And then you’re going to take it to different guilds and games.
And they’re going to want to attract you. If you’re a good player guilds and games want you, because they want you in their ecosystem. So we are creating a new market for gamers. So that’s one of the projects we’re very excited about and we are working on. The second project is a bit more serious. It’s about health passports in the metaverse. And we are working with quite a large partner in Europe, which we will announce very soon. We’ve already got thousands of customers and clinics and gyms under their belt, and they want to create gated access to their health ecosystem within the metaverse. So they imagine the scenario that there is a clinic in the metaverse and you walk up with a clinic and you can talk to the virtual avatar doctor in there, share some data, get some recommendations and walk out.
So we want to provide them the tech stack that lets them take their users wire and avatar into metaverse platforms. So we are working on a lot of these things. Now, when do we have a working product ready? Again, in our roadmap we spoke about our first milestone, which is to have our NFMe IDs ready to test first and then into main net. So what is the NFMe ID? Again, that’s basically the you in the metaverse and it’s a very cool 3D avatar, not just an NFT that you see that looks like 3D, but it actually is a fully controllable 3D avatar. So you can mint it. You’ll own the actual NFT in your wallet, and the NFT is linked to a rigged 3D file. So you can actually take this into a gaming platform and walk around and stuff like that.
So that’s our main goal, because that’s when people will realize what Itheum is doing. We’re taking this really complex topic and then we’re going to make it so fun. We’re gamifying a really complex topic. So that is we really are pushing for that, but hopefully we’ll get that out within three to six months is our plan now three months most likely. The challenge of course is we had a lot of progress before we joined the Elrond ecosystem, but a lot of that progress was in Itheum chain. So we are actively migrating a lot of that now. So that’s there, but we are confident we can pull that off as well. So to get at least the NFTs, NFMe avatars into main net quite soon.
So it’s not a long wait then you could be able to actually go and try it out. But if you are on some Itheum chains, now you can actually go into the Data DEX, log with your wallet and you can try the peer-to-peer marketplace, the Data NFT marketplace. You can see the first version of data coalitions. So yeah, we’re continuing our development from an architecture point of view, and then we are doing progressive migration to Elrond as well as coming up with our cool new feature of NFMe ID, all of this happening at the same time. Praveen, over to you.
Praveen Paul: Thanks Mark. So can see quite a few guys tuned in to the AMA. So please we’d love to have more questions from you. I mean, there are a lot of questions from the previous AMA, which we couldn’t answer, which we are trying to sort of get through as well but would love to have questions from those of you who are online at the moment. There’s some time left, and there’s so many of you on the channel right now. So please feel free to type some questions. So getting back to I think part of those questions that I was sort of answering before, and I might need a bit of help from Mark on this, but this is to do with essentially controlling the type of data.
So guys please tell me, am I allowed to sell other people’s data if I get access to it and how will you manage and control that fraudulent install and medical information, and that it’s not being sold for profit on the platform?
Praveen Paul: That’s one part which I will probably need some help from Mark, but then the second part also talks about existing Web2 platforms that basically let you personally download your Facebook data and basically trade it or sell it. And platforms such as crypto and other projects actually already support this. Now this is a good question and definitely, I think I’m glad that you brought it up, but this is just one aspect. Itheum is a lot more than just providing the ability to trade your Facebook data. I mean, that’s potentially one thing that you can bring across into the platform and trade it, but as an individual trading data, there may be not as much value as if you are on the platform and align yourself to a DAO, right. And I noticed there was one interesting DAO question there as well, which we’ll try and get to, but to do with basically trading not only just trading your Facebook data and your individual data points, but imagine the power of being able to trade that as part of a DAO in together.
And that’s going to be a lot more valuable. And that is I think one of the core things that we have within our infrastructure that really is very valuable. Where a DAO can be set up to trade on behalf of individuals, and that DAO could basically have a reputation score attached to it. So based on the data that it actually trades and the value and the quality of the data that it trades, it gets a better reputation score. And by getting a better reputation score, obviously, there’s a greater demand. And someone actually who’s willing to interact with that DAO and trade with that DAO is willing to pay more to obtain data from that DAO because it has a higher reputation score. So it’s not just about personal one-on-one transactions within Itheum.
I think the greatest value here is those DAO’s that are being set up each catering to different segments of data. So it could be data from… even if you look at the health data there could be many different types of health data. It could be wellness-related data. It could be heart rate-related data, and each one could have its own DAO. And as far as we understand after speaking to those who are working in this space the big pharma companies really value this data and obviously are willing to pay a lot for the data if the data is of high quality. And this is where basically by alignment with DAOs actually being able to trade data on behalf of individuals that puts individuals in a better situation as well, having not to have to individually go and try and trade data within the DEX. So Mark, if you don’t mind if you could just help a little bit with that I guess the lineage part I think that’s a key thing as well here.
Mark Paul: Yeah, sure. So Data Coalitions are a fundamental piece of this ecosystem because you cannot trade data in bulk without some form of governance. And that’s where we have our Data Coalition DAOs, which provide you with that decentralized governance. Now, going back to your first part of that question, which is a very, very important piece to understand is if let’s use examples. Let’s say you put something like your health and wellness data, or some wellness data set, and you align to a DAO, and the DAO then finds a buyer for this already has a buyer for it. And then your data as you generated data it’s being traded with this buyer or data consumer. So your question is what is stopping this consumer from just taking your data, making a copy of it, and then just reselling it or just taking it offline or off-chain and dumping it to somebody else?
Well, firstly, this is what happens in the world today. You put up your Facebook profile screens scrapers are coming scraping it. A bunch of bots are taking this data and that’s kind of how data brokers work. They are scraping your data from places and then creating these insights and then selling it to other organizations. And no doubt that this is also going to happen in Web3. People are going to still take this data, try to resell it and steal it from you. But what’s unique about how Web3 fits into this is a buyer doesn’t have to buy from these people anymore who are stealing your data, because the buyer can very openly come and buy it from a Data Coalition DAO. And then you’re probably asking, “Okay, what if this other person is selling it for cheaper?”
Well, the buyer can literally prove the authenticity of this data if they buy it from the Data Coalition DAO, which they can never do with the other one. Now let’s go for another example. Right now let’s say you have a very famous NFT artist or they built, they design and created a beautiful NFT. It’s worth a 1,000 ETH. And then you get this scammer who comes in there, right click saves the image and puts the same image for sale on OpenSea. You can very quickly pick up that this is a fake person doing a fake thing. There might be some people who might fall for it, but generally if you are buying this NFT worth a 1,000 ETH or any value given to it, you’re going to first verify that the author was who they say they are.
And that’s what OpenSea does. You click on the author, you go in, and you see that this is a verified person. This is what blockchain enables. Blockchain enables you to do things that you cannot do in the real world. Firstly, this is the proof of providence. Providence is who created this data. In this case, you can prove immutability by looking at the blockchain that the person who created it is the one who actually I bought it from even via the Data Coalition DAO, because you can prove that. Secondly, you can prove its lineage. In other words, who are the people who purchased access to my data? So Itheum they’re not really buying the data on-chain, there’s no data on-chain. It’s they’re buying access rights to your data. So if someone a consumer buys access rights to your data, there’s transactions on-chain.
So you can see, “Okay, who bought this?” And if that person has their Data NFT and they decided to re-trade it, that’s another transfer. So they can see, “Okay, this person transferred to that person. Okay, cool. I’m okay with that because I’m getting my royalties through it.” So you were able to do proof of lineage, which you could never do in the real world when your data is stolen from you. And finally, proof of veracity. What that basically means is that this is a guarantee that your data has not been tampered with. So if you put your DNA data set on the Itheum Data DEX minted as a Data NFT aligned to a Data Coalition DAO, and it then sells it to a pharma company, the pharma company can do proof of providence, proof of lineage, and also it can do proof of veracity.
In other words, it’s guaranteed that the data was never tamped in this whole supply chain. All of this is not possible in the real world where data are stolen from us. And basically the proposition here it’s you are getting all of this if you buy from a Data Coalition DAO, so then why would you buy on the open market? Because you can’t get any of these guarantees. If price is the only thing that drives you, then maybe there are people who are willing to buy some cheaper data set, but for the people who really are willing to pay the big money for data sets, like I said the pharmaceutical companies or the gaming platform, they are willing to buy the quality over some cheap data set that they can’t prove any of these things.
And lastly, this is again the use case for the Data Coalition DAO. So it’s actively governed. If you read our YWC that we envision a future where the board members running the Data Coalition DAO, they understand the data ecosystem. They are the ones mediating these deals. If they see that there is a data set that they’re looking after maybe it’s the DNA data they have given it to a pharma company who they have done the deal with and then sharing their revenue with you.
If they see that this pharma company off-chain in the real world has re-sold this data, they can penalize them, because they have some manual intervention is possible. There are bonds and everything they could penalize and they could slash them. So this is where the Data Coalition DAO comes into place, which is a very important part feel for this sort of decentralized bulk data trade to happen, and for real utility to happen. For the ITHEUM utility token, we need a lot of data trade to happen. And a lot of data trade is only going to happen if it’s wired through some bulk intermediary like the Data Coalition DAOs. Praveen, over to you.
Praveen Paul: Yeah, Mark. I mean, on that subject I think this would be a good one to close up with because we’ve pretty much gone through most of the questions that actually were raised, but on the subject of the DAOs, right? So there’s a question here from Ea Adolia.
To prevent hard centralization, board members are replaced. If agreed by the members with another board, I would like to know the worst-case scenario in the instance where no board is up for grabs to act as a replacement, what would come of the situation? I’m assuming that means that basically the board gets boarded out and there’s no one to replace it, what happens then?
Praveen Paul: And then he wants a bit more information on the board rotation, the board member replacements. So good questions. I mean, these are things that we’re still working on obviously, but then lastly also talks about what are the worst-case scenarios for the Data Coalition DAOs and what Itheum plans to do if there is a sudden case?
So I’m not sure if you can if you have access to that question, but there’s just more along the lines of how the DAOs are managed and what happens in the event something goes wrong and how we can sort of recover from that. So I thought this would be a good way to sort of close up.
Mark Paul: Yeah, sure. So the Data Coalition DAO scheme is the first version that we imagine it to be and has been detailed in the whitepaper. A lot of that I think you have actually raised questions or inquiries on, which is great. So firstly, as I was saying, the Data Coalition DAO — it will be run by subject matter experts who understand a topic. And I’ll use a health use case, but it’s not only health, it could apply to anything, but a health researcher forms a Data Coalition DAO by bonding into it, becoming the chairman. And then they bring onboard people who need to be involved in governance. Maybe it’s their regulators, maybe it’s some trusted partners, some ethics committee, and so on. So they are the ones who are… they’re probably already working together in the real world.
But they want to provide decentralized governance so they set it up. Then they attract participants into their DAO to contribute the data. So maybe they have already research participants who are maybe collecting DNA data. And then they say, “Okay, we have a new way with decentralized systems in place.” You align your data sets with us. You find the buyers, you attach the royalties to your data sets. And as these data sets are used, you get passive income for the rest of your life. So this is okay, how sort of the governance works at the high level. If you want more details, it’s all in our whitepaper. Now, in your example, or your question around what happens if the whole board gets voted out? Okay. So we have this concept that says that there are periodic votes. So if you are aligned to a Data Coalition DAO, you already have voting capabilities.
There are people who can also stake into the DAO. So you don’t have to give your data. So if you just want to participate in the Data Coalition DAO ecosystem and earn some rewards, just take your ITHEUM tokens and you stake it into it. You don’t have to give it the data. When the reason you’re doing this is you’re basically sort of like providing some trust that you have done some due diligence on who’s running this DAO and you feel like they are credible people and you want to support the data traded through this Data Coalition DAO, so you can stay. So all these people have a vote on the board. So if the board is really not getting enough sales or if they’re not finding enough consumers to buy your data, you could periodically kind of have a no faith sort of thing, and you can get them to be replaced.
Now, this is where it gets complex. If the actual board is doing okay, and it is maybe mediated by a bunch of traits that are actively happening, you don’t want to throw away the whole board because they are in the middle of putting out a deal to get your data traded. So this is where we have to this kind of is like a boundary condition, but it could happen. So on top of the Data Coalition DAO, we have the IF DAO, which is the Itheum foundation DAO, which is the goal towards full decentralization. But the IF DAO is responsible for setting the parameters around all the Data Coalition DAOs. So it’s like a DAO of DAOs. So this kind of situation is taken up to a vote to the IF DAO and the community runs the IF DAO.
So if you are staked into the IF DAO again, with ITHEUM tokens, more utility for the tokens, you have a say in what’s going here. So if somebody has no trust in the board, they want it fully replaced. This voting decision gets escalated because it has implications and there’s voting that could happen there. And you could either decide to let all current sort of data trade drain out, and then you dissolve the Data Coalition DAO or the IF DAO could decide to move or merge Data Coalition DAOs together, or it could bring in a new board from another Data Coalition DAO. So these kinds of decisions go up one step higher. We also fund all through the marketplace fee. We also fund an expert committee. If you read this in our whitepaper as well, who is actually available for mediation around all Data Coalition DAOs.
And what do I mean by expert committee? So people are very well versed in privacy regulation data. They would be funded to be available for consulting the Data Coalition DAO board. So in this kind of scenario, you have them available to you and they’re funded through the whole protocol. So as you can see, we are putting in place the system, which it’s not full decentralization to the point where it’s just messy and nothing happens, and all votes go to a deadlock. We’re putting in place a system where it’s very pragmatic.
You can actually do this and it provides the efficiencies of decentralized governance and transactional efficiencies, which you can’t do in the real world. But at the same time, if there are deadlocks and stuff, there are mechanisms to break those. Now, of course, a lot of these things we’re talking about are very advanced to do, so we will systematically build these things out. The first version of the Data Coalition DAO might be very simple. And if there’s any dispute resolution maybe it gets escalated to a specific party to resolve, but eventually, we will progress it into something that’s fully autonomous.
Praveen Paul: Thanks, Mark. Pretty complex thing. I think talking about the DAOs, we probably need to have like a separate session or something for that. I mean, you can really get into depth there.
Mark Paul: Absolutely. Yeah. It’s a very interesting topic and it’s the topic that gets the mainstream people the most excited. I was in our workshop this morning talking to one of the largest auditing companies around our technology because this is what they want to enter. So a lot of the mainstream people want to enter Web3, but they don’t want to enter it in a full decentralized version. They want some governance. So this is something that we also love talking about and educating people on.
Praveen Paul: Yeah. Well, it’s just the fact that they relate to it, right? Being an enterprise or DAO is sort of like an enterprise in a way. So that’s why I think they see the correlation and they relate to it I suppose.
Mark Paul: All right. I think we’re running over. So shall rewind up Praveen.
Praveen Paul: Yeah. We pretty much got through almost all the questions and it was a good turnout. So I was very happy to see quite a good turnout today and everyone sort of getting involved in the process. So certainly hope to do more of these and would like some input from the community too on what you guys actually want us to talk about or discuss and go through. So thank you from my side. Thank you very much for your time and for making it here today and spending an hour with us. And we’re just getting started, we’ve got a long, long way a road ahead of us and it’s going to be a very interesting one and that’ll become inevitable as you guys start seeing the partnerships evolve, and as we start talking to partnerships and releasing partnerships and then that’s what we’ll really show what the utilities for the token and sort of where we are going in the long run. But we really enjoy your company. We really appreciate you guys tuning and we’ll see you next time. Over to you Mark for the vice.
Mark Paul: Yeah. Thank you everyone for joining. I’ll leave you with just two requests and sort of next steps from our side. We’d like to give you guys a product and tech update. So that might be in the form of a town hall that’s either next week, most likely next week. So stay tuned for that because some pretty cool stuff we want to talk about. Second I think somebody actually raised it and yeah, the ITHEUM token is jam-packed with utility. Because what we are doing is we are unlocking personal data and every human on earth has personal data. And the only way to trade it in Itheum tech stack is why owning our utility token. So that’s something to keep in mind. And finally, as I mentioned if there are gamers in our Discord, please head over to the Itheum playground, and help us bootstrap this area.
We have an Axie Infinity and WonderHero chat. And the reason we want you there is just to kind of… we want to grow the gaming data ecosystem within our Discord because the first product we’re taking out to market is our gamers Player Passport, which supports these games. So we’d love for you to be the early adopters of this. It’ll be great because we’ll know that our community adopted it earlier. And of course, that would be definitely some incentive down the track to be an early adopter. So thank you so much, everyone wherever you are around the world. And we will talk to you all very soon. Thank you and goodbye.