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Iteration Three - In Projects We Trust

Iteration Three
Iteration Three - In Projects We Trust
By Oliver Jumpertz • Issue #7 • View online
Wow, issue number 7! I am super happy that this is already the 7th issue of this newsletter going out, and it’s still as awesome to write it as it was when writing the ones that came before.
Once again, I tried to pack as much valuable information as possible into this issue, and I’m looking forward to any feedback you have for me.
This time, we have something about projects that any Web 3 developer should build at some point, a quick advice regarding the crypto markets, and some relevant news with some funny bloopers by popular platforms.
Enjoy reading this issue!

Projects Every Smart Contract And Web 3 Developer Should Build
Web 3 is still so new that we don’t even have a clear vision of where we are heading yet. But we gladly have already developed a few standards that do pretty well for now. And those are the standards every smart contract and Web 3 developer should build at some point in their career.
Those projects help you understand the broader picture and learn common patterns, pitfalls, and drawbacks. This is why they are so important. After you’ve gone through them, once, you’ll know your way around.
An ERC20 Token
Let’s start with the most boring thing you can imagine when you’re experienced: Implementing an ERC20 token. These tokens are the foundational base for many other projects you will build throughout your career.
You should at least for once have implemented an ERC20 token yourself, without the help of Open Zeppelin or another contract library. And as a frontend developer, you should know how to deal with fungible tokens.
An ERC777 Token
Although ERC20 is the standard for fungible tokens these days, ERC777 improves the popular standard with hooks and solves some confusion with an ERC20 token’s decimals.
ERC777 tokens are backward-compatible with ERC20 tokens but allow dedicated users of the improved fungible token standard to benefit from its new features.
Hooks, for example, allow contracts to react to outgoing and incoming tokens in the same transaction, which does not only save gas but also improves usability a lot.
A smart contract developer who is capable of implementing both ERC20 and ERC777 without the help of libraries does already know the majority of Solidity and standard concepts so well that all other projects become way easier.
An ERC721 Token (aka NFT)
No list would ever be complete without NFTs. ERC721 is the most common NFT standard on Ethereum and Ethereum-like blockchains.
The standard is a must-know for any smart contract developer because it’s so common in projects these days. Dealing with NFTs also benefits getting exposed to IPFS as a decentralized storage medium both for smart contract and frontend developers.
An ERC1155 Token (aka Multi Tokens)
ERC1155 is the multi-token standard of Ethereum. It can wrap any number of fungible and non-fungible tokens and publicly act as a uniform interface.
Nowadays, you often find ERC1155 in the form of NFT collections that can hold any number of related and unrelated NFTs.
Learning to implement this standard teaches smart contract developers a lot about Solidity and multi-purpose contracts, which definitely helps with more advanced standards like marketplaces and exchanges later.
The Royalty Standard ERC2981
NFTs themselves cannot model royalties, and this is why you can, at any time, transfer your NFTs from your wallet to that of a friend without having to pay anything. Everything lives a layer above those tokens, from selling and buying NFTs to collecting royalties.
ERC2981 is the standard that defines how royalties are tracked and must be handled by marketplaces. It’s an addition to existing tokens and can even live independently.
The standard itself doesn’t teach you too much new because it’s mostly a contract that holds data, but it’s so common these days that smart contract developers should know how to implement it, and frontend developers should know how to interact with it.
A Marketplace
A marketplace is one of the first really complex projects you can build in your career. We talk about something similar to OpenSea, all based on smart contracts and thus being as decentralized as possible.
It’s also the first project you probably get in touch with Oracles as a way to get live market price data. This means that such a project will teach you a lot about Solidity and decentralized computing outside the blockchain.
A marketplace will probably take you longer than only a few days to implement, but the knowledge you’ll gain far offsets the investment. Managing listings, tracking prices, and monitoring sales are only a few of the exciting features you will build.
A DAO
A decentralized autonomous organization is another project that not only tests your existing knowledge of Solidity but equally teaches you so many new concepts. And you’ll also get the chance to use so many of the existing standards and so much of the knowledge you gained until that point. Next to that, DAOs are “in” these days, and this is why the chances are high that you will have to implement one earlier or later.
Similar to a marketplace, you will also need many of the other standards you hopefully implemented up to this point to get a DAO up and running. And did you know that working with the voting features of a DAO can also be pretty fun for frontend developers?
A Decentralized Exchange
A decentralized exchange is definitely the premier class of smart contract development because you’ll need everything you know to get a good and secure one up and running.
Take a look at Uniswap or PancakeSwap to get a general idea of what you’ll face when implementing your own decentralized exchange. But don’t worry too much; both of those platforms are open source, and if you ever get stuck, you can peek at their code to see how they have done it.
And Then What?
Well, everything after this is up to you. There are, of course, more projects you can build, but the ones presented here cover everything you need to know right now to be considered “dangerous enough” to work in the industry. And never underestimate smart contract security as another field you can try to become proficient in. Security flaws these days are so obscure and mysterious that even the best developers sometimes just miss them.
Why Perspective In The Crypto Markets Matters
January is nearly over, and the markets still haven’t recovered yet. I get a few DMs each day of people asking me what I think about the matter, and I understand the point. No one feels good when you are basically “losing” money, without any signs of getting it back soon.
While I can’t and won’t give you financial advice, I can help you put everything into perspective.
Bitcoin - one-month chart - Source: coinmarketcap.com
Bitcoin - one-month chart - Source: coinmarketcap.com
This is the one-month chart for Bitcoin. Everything is deep red, and it doesn’t seem to be going particularly well. But what many younger investors need to understand is that investing is a long-term game.
You don’t invest for only a month or two, and if you do, that is called trading. You go in and expect to make money in a shorter amount of time. In this case, I am sorry, but I guess you won’t get your money back that soon. It might take weeks, months, or even years until we get back to the tops we previously left off.
But let’s put things into perspective so you understand where we come from and where we are currently actually at. Take a look at the all-time chart of Bitcoin below.
Bitcoin - all-time chart - Source: coinmarketcap.com
Bitcoin - all-time chart - Source: coinmarketcap.com
If you look at it from this perspective, with a birds-eye view, you’ll realize that everything you see now is only a temporary pushback. Bitcoin rising to $60k has already been an insane rise in price. And while it might hurt temporarily, especially if you bought at the top, the currency has already shown that it has the potential.
Additionally, we are only one month into 2022, and the chances are high that the markets recover as soon as the Fed finally announces their future strategy regarding interest rates. And as soon as that happens, buying pressure could increase drastically and bring Bitcoin and all other cryptocurrencies up to new heights again.
Until then, take a step back and look at the bigger picture. You’ll often be surprised to see that what looks pretty bad in a closeup isn’t nearly as bad from far above.
Selected News
China pilots nationwide blockchain development over real-world use cases
I’ve said it for a long time and have never become tired of mentioning it. When a country bans some aspects of blockchains, it doesn’t mean that blockchain is dead.
China is such a prime example. After the crypto ban last year, it was pretty apparent that a country as technology-averse as China would soon jump on the train itself.
That’s exactly what happened now. The Cyberspace Administration of China (CAC) has now announced its venture into blockchain technology to “promote the intensive and balanced layout of blockchain technology infrastructure in the region, form a large-scale production-level cross-chain data exchange support capability, and promote the formation of a multi-party collaborative blockchain industry ecology.”
China already dominates machine learning and blockchain seems like the next sector the government will pump massive funding into to set the country apart from all competitors.
On January 27th, Snoop Dogg sent out a pretty interesting tweet. It could make us believe that the rapper is about to drop his own NFT collection soon. We currently know that the collection will be a pixel pfp collection of unknown numbers. Furthermore, the collection is directly affiliated with Sandbox (the metaverse), and right now, early access to the “Snoopverse” is being sold. As of writing, the price to get on board stands at ~2005.50 USD-
Meta goes Brazil to trademark Bitcoin and crypto services
As an avid follower of news worldwide, you probably already know that the company previously known as Facebook is now called Meta. And if you paid close attention to the news and analyses around the world, you also already know that probably this was a desperate move of Zuckerberg to get more attention and position the company at the forefront of Web 3, decentralization, and the metaverse.
Recently, Meta even went one step further and registered several trademarks in Brazil for crypto products and services related to trading, wallets, and exchange platforms. That is interestingly associated with a field where Facebook already got more than one black eye (hello Diem!). We now have to see whether this turns into a huge win or another big loss for Meta.
LeBron James and the LeBron James Family Foundation Announce Multi-Year Partnership with Crypto.com
Web 3 is hot, and it’s actually so hot that even LeBron James seems to understand the opportunity the space brings.
The NBA player recently announced his partnership with Crypto.com to support educational and workforce development opportunities focused on Web3. According to several media outlets, the initiative focuses on James’ hometown Akron, Ohio, and aims to educate ~1,600 kids in crypto and blockchain-related technology.
Let’s be honest here. OpenSea had not the easiest months recently. The platform gets under fire more and more because of many different hiccups and oopsies in the past.
Their latest oopsie, however, is so insane that it definitely deserves a news entry. So, what happened?
OpenSea recently sent out an email to owners of older, inactive listings. The email urged owners of such older and inactive listings to cancel those listings to prevent the dropping price of ETH from triggering sales at unintended, way lower prices. According to OpenSea, the team cannot cancel such listings themselves and thus needs immediate user action.
However, when some users followed OpenSea’s advice, the exact opposite happened. At least one user who canceled their listings reports that exploiters were able to use the cancellation details of their old listings to frontrun the cancellation transaction with another transaction that sold them the NFT at the old, low price of the inactive listing.
Although OpenSea itself is not fully responsible for the exploitation, they are still a part of the problem. The platform should have thought about the potential issues of their request, and their system of giving “allowance” to the platform to list, delist, trade, etc. NFTs is also a huge part of the problem that enabled this exploit.
That's It For This Issue
This issue has now come to an end. I hope you enjoyed reading it, and that you took something worthwhile with you.
As usual, if you have any feedback, feel free to provide it. Even if you have any ideas, share them with me, I’ll do my best to find out how I can incorporate them into this newsletter.
Until then, stay safe, hodl, and go buidl some dApps!
Yours sincerely,
Oliver
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Oliver Jumpertz

Hey, I'm Oliver, and Iteration Three is my newsletter focused on Web 3 and me. One that I would love to get every week.

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