Egggg yolk, what’s cracking with my people,
those who don’t miss an episode, the Chico Army but if you're new, you aint part of the
army crew you're just a viewer of the tube. My name is Tyler and if your my #1 fan, this
content is about to blow through your roof. He was a fan, among fans….it’s time for
Chico Crypto! I’m sure you saw yesterday…the bounce
upwards, the bullish spike everyone likes to see. From the lows of 10,550 to as of yesterday
afternoon, above 10900. Right towards a middle of an important range.

Expanding out the chart you can see since
the end of July, we have been between the 10k to 12k range, on the top of it and on
the bottom of it, but now we are in the middle… This is actually a really good thing, as altcoins
will really start to find discovery, even if we go sideways, and then really take off
if we break the top of the range 12k. Why? Same thing happened in the months prior, when
we were in the 8k to 10k range. On May 15th, we were in the middle of the
range, bounced towards the top and then settled into the middle of this range around 9k until
July 20th.

What happened to BTC dominance over this same
time period, it dropped from above 69 percent and it just kept going down, and down…..and
down until it got to about 62 percent. So, I foresee a similar thing going down in
the middle of this range, I mean if you look at the top 24 hour performing coins yesterday,
it was altcoins having bigger bounces, with 42 altcoins performing better than BTC, bitcoin
was way down on the list. Hmmm alts….so today, let’s dive into what
I think could have the biggest bounces if things are like before.

So what got altcoins moving throughout this
year 2020? Something called DeFi, or decentralized finance…and
again, this will be the buzzword which get’s altcoin interest bubbling. But you gotta think of DeFi like lego pieces,
there are multiple distinct parts that are meant to fit together, enhancing each other
to create the decentralized financial ecosystem. Per example, maker is a governance protocol,
for a decentralized CDP based stablecoin dai. The two are distinct pieces that fit together,
but you can also add things on top and to the side of this…like compound, the borrowing
and lending protocol, which uses some of the CDP infrastructure from dai to create its
lending market. And it gets even more mind blowing what can
be built, when you add more pieces, like Uniswap the decentralized token swapping protocol,
metamask the blockchain interface to DeFi & more.

Now a decentralized stablecoin, decentralized
and trustless lending and borrowing markets, Interfaces and swapping protocols are all
critical DeFi Lego pieces. And there are others out there, who can replace
the ones shown, performing the functions of each & sometimes in different & better ways. That’s the beauty of the composite structure
of DeFi, pieces can be added, replaced or combined. So, I wanna speak on the next “Lego Pieces”
I see with strides, and I’ve hinted on this in the past….as the next step into tokenization. NFTs & scaling the Ethereum protocol so it
can handle things like NFTs, Layer 2 solutions. So let’s begin with NFTs…I’m sure when
you think of Non Fungible Tokens, you think of digital art pieces…which yes, is a big
freaking market for NFTs right now, although just like an art collector, you need to be
in tune with the markets, if you wanna make money. You gotta know who is doing the work, will
that artist be around and gain notoriety, creating a buying market for your piece? It’s a tough market to be in, and a large
majority of NFT art collectors, traders & the like are going to lose some money, and be
holding a digital piece of art, maybe forever? But who is the leader in this space? The Digital Art marketplace, well it’s Rarible…they
have a really big and blossoming art NFT space, which is nicely powered by their governance
token mining & if you go to opensea, rarible has been the top volume, week after week.

But like I mentioned, just going to rarible
to buy NFTs you think look nice, may be a losing strategy, as value is found from NFT
artists who gain that fame, or come from a celebrity type status. But NFTs are not limited to just digital art,
but digital lot’s of things. Digital land, digital insurance contracts,
and the blending of the physical world, bills of lading, trade documents & more.

What do I mean??? Well SWIFT, the global payment powerhouse,
was at SIBOS 2020 this year, which was fully digital…they presented, on Monday…with
Louise Tayler Digby, head of strategy for Swift, Luca Castellani, Secretary of United
Nations Commission on International Trade Law & Loh Sin Yong Director of Trade Sectoral
Transformation Group & the IMDA. Now 1st let’s listen to what Loh Sin Yong
said in his answer to a question from Louise regarding trade digitization. He said, check us out, at & look
into us…well that is exactly what we here at Chico are going to do. So going to trade trust documentation, we
can see that Tradetrust is a set of Governance & Legal Frameworks, Standards and future-ready
Digital Infrastructure, all of which facilitates the interoperability of electronic trade documents
exchanged between different digital ecosystems.

Then below, as we can see it says, The fingerprint
of the signed TradeTrust file is then committed to a Document Store smart contract on the
Ethereum Blockchain, which serves as an immutable ledger….hmmm, the big dogs are using ethereum..but
remember I said this connects right back to NFTs? How are they doing it? Well let’s jst go to the token registry
section, and as we can see documents are stored as erc721’s aka NFTs. And then diving into the github, we can see
this major international trade finance product is besides using ethereum’s erc721 standard,
it’s using metamask, and etherscan critical infrastructure tools. Ummm, if you're hating on Ethereum, and thinking
others are going to beat them in space, all I have to do is say is…. if you aint got
32 Ethereum, I feel bad for you son, I got 99 problems & a ghost chain aint one. Speaking of Ghst. what about AAVE GOTCHI nfts,
this is one we gotta bring up, because it combines digital collectibles, what we spoke
of before, and DeFi putting multiple lego blocks together. So an AAVE Gotchi, is an NFT, which is backed
with interest bearing atokens from aave…so each created gotchi, has some inherent financial
value, and will increase in value over time.

Staking more get’s you rarer AAVE gotchi
traits, less of a stake, less rare upon creation…But here is where things get fun, when creating
a gotchi, you are assigned some random traits, at birth…, so those without much to stake,
stil have a chance at rare traits…and guess, who they are using to assign these random
traits? Chainlink with the VRF they built, the Verifiable
Random Function. Now before, we get into our next topic layer,
2…it’s time for a sponsored segment of this video, being supported by the team over
at Unilayer, and like always the full details of our agreement can be found in the description… So Uniswap, the talk of the crypto town, but
just like any protocol in Ethereum, it's a lego piece that others can build on top of,
and that is just what Unilayer has done.

Putting order books on top, charts & analytics,
as well as a staking portal. So, Unilayer is actually in Beta right now,
which means we can use it, so let's do like Chico does, and dive right in. The beta demo can be found in the description
if you would like to follow along, but just like the warning says, this is BETA and use
at your own risk. Once we get there, as you can see, something
that looks like an exchange, pairs are to the left, the chart is in the center, order
history below, and the order book to the right for the chosen pair. So now, for each and every Uniswap pair, you
can put in orders, and have them filled if the prices rises, or drops…. automatically. As well as have all the charting tools at
your full disposal, all in one place.

And putting in a buy or sell, is familiar
if your used to an exchange interface, and the transactions is fully confirmed through
metamask, and fully verified on etherscan. So a beta of these tools for the swap, is
a much needed thing in the space, people have been asking for it for a while now & unilayer
is delivering. But that is not all they are delivering…they
are also putting out a marketplace for NFTs…which is in Beta as well, but has listed mutant
monsters, bonk token NFTs, gods unchained and crypto kitties. And then just yesterday, they released their
dex aggregator…going to that it looks just like Uniswap, but this doesn’t only source
from the swap, but behind the scenes also 0x, Bancor, DODO, Mooniswap, Oasis, Balancer,
Curve, Kyber, mStable, Shell, Sushiswap & Swerve, so it can get you the lowest price & it’s
live. Now the last piece of Unilayer I would like
to discuss is their staking portal, which as we can see from the Interface is coming

Layer staking with Unilayer, takes a unique
approach, with a model called flash staking. You stake your Layer against an erc20 token
on the platform, and you are rewarded instantly with the full amount of that erc20 for the
stake period, instead of given out over the period of the stake. Your tokens are locked for the duration, eventually
can be withdrawn but the major benefit you get to enjoy the rewards early on & they this
will promote trading activity of erc20s on the platform. So if you're interested in a professional
tool built on top of uniswap, plus more the demo is below, as well as a link to their
Telegram group.

Now, Layer 2….the topic I’ve been covering
consistently over the past few months, since Ethereum fees rose to over a dollar, bubbling
to ridiculous levels, and settling down but are still at unsustainable levels even after
the dust has settled. A dollar is still way too freaking much. Layer 2, is as needed as ever, because if
another wave comes, a bigger one…ethereum will become unusable.So Ethereum layer 2 scaling
comes down right now, to 3 things. From ethereum developer documentation they
say… Channels, like a lightning network, and then
just Rollups and sidechains. So in the channel space, you have raiden who
has a token, but I haven’t seen much adoption, then there is connext too, but as we can see
from DeFi pulse, limited adoption with them too & they don’t have a token. And then we recently learned arbitrum is coming
with their own channels too, which is good for chainlink, but those are not released. So it’s gotta be in rollups or sidechains…but
we learned recently too, rollups aren't’ ready, so it’s gotta be a sidechain, sisterchain,
childchain…and you are correct.

This is the tech, that is ready, live and
prepared to go. Xdai falls into this as a sister chain, OMG
network falls into the category of childchain & plasma, and finally matic network fall into
the category of sidechain. Those are the 3 that are prepared & ready
to go & each of these submitted to the reddit scaling competition. Like I’ve mentioned, out of the tokens who
submitted, these 3 are my choices for the likely winning contenders. Personally, I have more xdai, then OMG, and
finally matic. Why is this? Well it comes down to decentralization, politics
and bridges. So the most decentralized is actually the
OMG network, as their plasma chain validation network is decentralized. But plasma as we know is very limited to just
token transfers, so IDK how OMG could fulfill all of Reddit’s goals, but Politics could
sway a decision, as OMG is connected to the ethereum foundation. So in reality, those who can support scaling
of not only transfers, but smart contracts is matic and xdai. Now they both are actually centralized.

Matic has validators for it’s sidechain,
but they were all chosen by matic…so centralization, although 3 days ago, they did say they were
moving into phase 3 and opening up validation to the public, which would make them decentralized. Xdai’s is similar, centralized, but with
the public release of posdao, they will soon be in the same decentralized boat. But the bridges is why, I’m more bullish
on xdai. There bridges are the ones being used across
the space. Xdai of course uses the xdai bridge for dai
to xdai transfers, but also the omni bridge, for all asset transfers. Matic's bridge also allows for asset transfers,
but complication comes in as users must request a specific asset to be added to the setup
through a mapping request.

Xdai, none of that needs to happen & with
Matic’s most secure plasma bridge, the wait time is 7 days for withdrawals, although they
have released a POS bridge, which provides faster transfers and withdrawals, with much
lower security guarantees. Both xdai’s bridges follow the same AMB
structure, so the security should be the same for each. So, I’m dipping my hands in each, scaling
is a critical piece of ethereum, and those who contribute to it are going to succeed. Cheers viewers I’ll see you next time!.

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