SFT Protocol Leadership’s AMA Recap on Telegram: DePIN and Web3 Vision!

8 min readApr 15, 2024

Introduction:

Welcome to today’s recap of the insightful Ask Me Anything (AMA) session hosted by Joseph, featuring two SFT team guests, Rufus, the CEO of SFT Protocol, and Phillip, the CTO. The discussion delved deep into the intricacies of SFT Protocol, its innovative approach to liquidity staking and Web3 infrastructure, and its broader impact on the blockchain ecosystem.

Exploring SFT Protocol:

Joseph kicked off the conversation by introducing Rufus and Phillip, setting the stage for an enlightening discussion. Rufus began by unraveling the intricacies of SFT Protocol, shedding light on its unique “Chain of Chains” architecture and its mission to tokenize physical infrastructure. Through hardware integration, SFT Protocol aims to revolutionize blockchain participation and drive efficiency in the Web3 space.

Joseph: I have just turn off the text option for normal user so guest can answer easily! Today with me have two guests our CEO Rufus and CTO Phillip!

Rufus: Hello!

Joseph: Hello, good day hope you are well let’s start our AMA activities. Hi CEO, please can you introduce the SFT protocol!

Rufus: Hello all, happy to be here, excited to start. So to introduce SFT Protocol. SFT Protocol’s is DePIN powered “Chain of Chains” architecture, using hardware integration to enable seamless transition across multiple blockchain networks while standing alone as an application chain instead of being an L1 or L2 blockchain.

We are developing a model for tokenizing physical infrastructure, facilitating community-driven development and maintenance. We believe that merging hardware integration into an application layer will drive efficiency and broaden participation in the blockchain and Web3 space.

Joseph: Woo that’s cool, from you here so lot of things to learn about SFT, now; we have some question and we would like to hear from you…

@SnackyC The CTO can you please share about you and could you share a bit about your journey and how you came up with the idea for SFT Protocol? What inspired you to create a solution for liquidity staking and Web3 infrastructure?

Phillip: I mined my first BTC in 2011 on my desktop GPU 😁 I have been in this space a long time. I have been following the project since its inception, officially, we didn’t come up with the idea, but joined at the end of last year.

That said, staking lockups, such as on ethereum but especially on FIL, has always been a pain point in the ecosystem. We saw this as a very straightforward starting point for integrating hardware.

Lido is one of the most successful projects on ETH, but providing liquid staking derivatives with Filecoin hardware almost kind of sets up a roadmap for you, for better utilising that hardware in a DePIN network, and for providing all sorts of other services as well.

The purpose of Liquid staking derivative tokens is to allow users who want to stake their coins to be able to participate in blockchain consensus and earn the income from doing so without the required lockups.

I mentioned Lido on ETH as a popular project for this on the ethereum network as an example of this. I do think Lido is leaving money on the table however as they don’t provide even RPC services with their node network to provide additional income to their users. We can do much better.

Joseph: Thank you for that insightful response! It’s fascinating to hear about the origins and motivations behind SFT Protocol.

My next question goes to @MrGPUs CEO

DePIN and Web3.0 Vision sound intriguing! Can you elaborate on what DePIN is and how it fits into the broader Web3 ecosystem? What unique features does DePIN bring to the table?

Unveiling the Vision:

Phillip and Rufus shared their journey in the crypto space, dating back to the early days of Bitcoin mining. He elaborated on the genesis of SFT Protocol, emphasizing the solution it provides for liquidity staking and Web3 infrastructure challenges. With a roadmap rooted in sustainability and innovation, SFT Protocol aims to reshape DeFi liquidity dynamics permanently.

Rufus: As I see it, DePIN is the natural evolution of the core value introduced by bitcoin.

When Bitcoin was born, it created for the first time, a way to incentivize and reward a globally distributed network of hardware and software to perform a task.

This is the core value of crypto, in my opinion, and is why I started my crypto career in mining.

I think that SFT brings this to a new level by leveraging the core innovation of cryptocurrencies to incentivize, not just the security of the network, but also access to general compute, storage, and throughput as well as any other aspect that can measurably improve the network.

Joesph: Intriguing!

DePIN certainly seems like a game-changer for the Web3 space. Thanks for sharing those details with us.

My next question for our CTO.

Liquidity staking is a critical aspect of SFT Protocol. How does SFT Protocol address the liquidity challenges faced by token holders who want to stake their assets?

Phillip: Liquidity in defi is always the issue right? Currently SFT is incentivizing liquidity through the use of farm tokens, however since Rufus and I came on board we have been advocating for switching this to a more sustainable method.

Joseph: True!

Towards Interoperability:

Phillip detailed SFT Protocol’s plans for interoperability and cross-chain compatibility, envisioning a future where SFT Chain integrates seamlessly with multiple blockchain networks. With ambitions to solidify its position in the DePIN market, SFT Protocol aims to become a cornerstone of decentralized infrastructure globally.

Phillip: We are planning on adding a mechanism to use a portion of revenues derived from hardware running on the SFT network to purchase liquidity from users, making sure there is a permanent backstop of liquidity.

People may be familiar with projects from a few years ago when a number of projects began experimenting with protocol owned liquidity.

The problem with many (really, all of them) is they did not have any external revenue to backstop this process.

However we dont have this issue as we are using actual revenue from hardware and services to solve this- SFT aims to solve DeFi liquidity issues permanently.

Joseph: That’s a brilliant approach to maintaining liquidity.

Your explanation really highlights the value of SFT Protocol’s solutions. Appreciate your clarity on this.

This special question for CEO @MrGPUs, web3 infrastructure plays a pivotal role in the adoption of decentralized technologies. Could you highlight some of the key components of SFT Protocol’s Web3 infrastructure? How does it enhance security, scalability, and overall user experience?

Rufus: Security & reliability are features of decentralization. The tradeoff for decentralization is scalability. SFT is planning to work both with large commercial hardware providers as well as decentralized infrastructure provider platforms to ensure reliable throughput out of the gate and redundant global participation on the network. Our goal is to incentivize scalability while maximising decentralization and security.

Joseph: Your focus on enhancing the Web3 infrastructure is commendable. Thank you for outlining the key components and their impact on user experience.

Within this super exciting moment next question for our CTO.

@SnackyC As SFT Protocol expands to other public chains beyond Filecoin, what are your plans for interoperability and cross-chain compatibility? How do you envision SFT Protocol contributing to the broader blockchain ecosystem?

Phillip: The “chain of chains” is an all-in-one blockchain solution. Our immediate goal is to complete binance chain integration and launch SFT Chain’s testnet.

By the end of 2024, we aim to launch SFT Chain’s mainnet and list on multiple CEX. over the next 5 years we plan to enhance our technological framework, broaden our service offerings, and solidify our position in the DePIN market, aiming for SFT to be a cornerstone of decentralized infrastructure globally.

Our end goal is to have SFT address this by providing a decentralized network to run, rent, and own DePIN hardware that can then be used to support other chains and the whole crypto space.

This is why building a chain of chains using DePIN hardware is the best way to increase the sustainability of both our network and the entire crypto ecosystem.

(my favorite part) 🤠

Engaging the Community:

The AMA concluded with an interactive session, where viewers posed pertinent questions to Rufus and Phillip. From addressing liquidity concerns to discussing regulatory challenges, the guests provided insightful responses, reaffirming SFT Protocol’s commitment to transparency and community engagement.

Joseph: Interoperability is key in today’s blockchain ecosystem, and it’s great to see SFT Protocol’s commitment to this.

Thanks for answering..

It’s almost the last moment of AMA, at this moment I am opening the chat for everyone for viewers have any question they can ask our leader will answer their most important five questions.

Listener: I noticed the price of rSPD is going down from what it was some days back, is this caused by lack of permanent backstop of liquidity?

Phillip: The entire market has been sliding the past few days unfortunately. However once protocol owned liquidity is released there will be an implied minimum price as the protocol accumulates more liquidity than the market can provide sellers 😁

Listener: Is SFT preparing for financing?

Rufus: Yes, we are raising funds and planning for the mainnet launch atm, I am in the US seeking partners in the hardware space ATM.

Listener: What is the full meaning of DePIN and will SFT run on it’s own block chain or binance or other existing block chain?

Rufus: We are currently planning to be an application layer protocol which will run on multiple blockchains. DePIN stands for Decentralized Physical Infrastructure.

Listener: Will there be a special application for Stake in the future, not just a website?

Phillip: Many Dapps are mobile friendly and work with metamask and other mobile wallets- it is not necessary to wait for a special app to begin staking it! However apps are also an easy way to access services such as storage, so this is on the roadmap after testnet launch.

Listener: Is the development of SFT Protocol affected by the regulatory and legal environment?

Rufus: Yes, of course everything in crypto is effected by real world regulations. However we are working to be as decentralized as possible to mitigate these risks. As an infrastructure token most governments really want to build more infrastructure so we don’t think this will be an issue for us.

Listener: When will SFT’s mainnet be launched?

Rufus: As soon as it’s ready!

Joseph: Thank you all for joining us today and for the insightful discussion!

We’re thrilled to have shared the vision and innovations of SFT Protocol with you. Stay tuned for more updates, and we can’t wait to continue this journey together.

Let’s keep the conversation going and build a vibrant community around our shared passion for blockchain and Web3. Until next time, keep innovating and see you in the digital space!

Conclusion:

As the curtains draw on today’s AMA session, we extend our gratitude to Rufus, Phillip, and all participants for their valuable contributions. The journey towards a vibrant blockchain ecosystem fueled by innovation and collaboration continues. Stay tuned for more updates on SFT Protocol’s groundbreaking initiatives, and let’s continue to push the boundaries of possibility in the digital realm. Until next time, keep innovating, and see you in the digital space!

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