Panaverse DAO

Web 3.0 User Guide

Join the Future Now
Zia Khan
MA, MBA, MAC, MSE, CPA, and CMA
[Link]

[Link]
 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.
35
289
1,250
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and sending money online instead of relying on the outdated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).
[Link]

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

[Link]
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.
● [Link]
art-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.

[Link]
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
[Link]
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
[Link]
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.
[Link]
22873231599781756762181812533941645749518337/
Moved to the Miannet
[Link]
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
[Link]

Why DeFi Giants Aave, Curve May Want Their Own Stablecoins
[Link]
-own-stablecoins/

Panaverse DAO Plan Under Development: TrueBlue Coin

[Link]
/edit?usp=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
[Link]
Tutorial: How to Become a Liquidity Provider on Uniswap
[Link]

Part 2: Create a New Pool and Provide Liquidity

Youtube tutorial on creating a liquidity pool and coin:
[Link]
[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:

[Link]
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:
[Link]
3yAggX3j2TXKg/viewform

Also Share:
Twitter and refer to @Panaverse_edu with hashtags #web3 and #uniswap
Like Facebook Page and post:
[Link]
Facebook Group:
[Link]
Panaverse Channels on Panacloud Discord Server:
[Link]
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:
[Link]
3yAggX3j2TXKg/viewform

Also Share:
Twitter and refer to @Panaverse_edu with hashtags #web3 and #uniswap
Like Facebook Page and post:
[Link]
Facebook Group:
[Link]
Panaverse Channels on Panacloud Discord Server:
[Link]
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:
[Link]
3yAggX3j2TXKg/viewform

Also Share:
Twitter and refer to @Panaverse_edu with hashtags #web3 and #uniswap
Like Facebook Page and post:
[Link]
Facebook Group:
[Link]
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[Link]
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:
[Link]
3yAggX3j2TXKg/viewform

Also Share:
Twitter and refer to @Panaverse_edu with hashtags #web3 and #uniswap
Like Facebook Page and post:
[Link]
Facebook Group:
[Link]
Panaverse Channels on Panacloud Discord Server:
[Link]
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 ‘[Link]’ 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

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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
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How Hash Works, learn by doing it:

[Link]

How Block is mined, learn by doing it:

[Link]

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

[Link]

Distributed Blockchain demo:

[Link]
Public / Private Keys and Signing
Watch Video
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Tokens, learn by doing it:

[Link]

Coinbase Transactions, learn by doing it:

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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

1. Digital private keys,
2. Ethereum addresses, and
3. 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

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