Venture Step

Dalton Anderson (00:00.814)
Welcome to Vintros Step Podcasts where we discuss entrepreneurship, industry trends, and the occasional book review. In this episode, I'm going to be following up on my previous episode, a couple of episodes ago called SUS Learnings. SUS Learnings, if you're not familiar, I would suggest that you go back to that original SUS Learnings episode since it's going to be what I would consider a series. And the SUS Learnings is the startup school,

And the Startup School is a program offered by Y Combinator. You can apply, it's free. You just put in some personal information and then you have access to the program. And in a general sense, it's a course on how to make a startup. And the first section that I've completed so far is why should you not start a startup? Who is a startup for and not for? What are the things you should?

way out, like what are the pros and cons of this venture? And then the next thing is like, how do you know you have a good idea? Or how do you understand or value an idea? And what are the things you should look for? And in that episode, I talked about a recipe series that they discussed. There's seven steps to their idea recipe. And if you can make quite a few of those steps of the recipe, you'd probably have a pretty good idea.

So in this episode, I use the idea recipe to find an idea space for me and some opportunities for me to pursue potentially. So for myself, I've got experience in data, I've got experience in insurance, and that is a good space for me. But insurance can be in

all sorts of sectors. I've mainly worked in property, but there's property, there's casualty, and then there's all sorts of other stuff that I haven't had experience with.

Dalton Anderson (02:11.608)
But in this episode, we're going to be discussing something that is somewhat used in certain areas and sometimes not so much. And that would be parametric insurance. And parametric insurance is a little bit different than traditional insurance. Traditional insurance is you have a claim, so you file a claim. And then if you're in a homeowner's policy, as we're talking about for this example,

because you might be familiar with that type of insurance or auto insurance. You file a claim, somebody comes out, looks at the car, somebody comes out, looks at the home, and then from there, they would determine the loss amount and then they've got to go through their claim system, got to write up all your notes, then you've got to file everything. And then time that all happens, it could be weeks to...

if it's very complex, it's a very complex claim, it might take months. could take 30 plus days to get paid. Whereas parametric insurance is a little different. You have a pre-agreed upon metric, like say that you have some sporting event that you're hosting and if it's over two inches worth of rain,

you will have a loss of revenue because not as many people are going to go. And so you could get parametric coverage on that and say, OK, when there's two inches of rain, two inches or more of rain in one single day during my sporting event in my specified area, then I'll get money. And so then what you would do with parametric insurance, you still kind of have to file file losses.

or it's sometimes set up like automated with a API, but then it's still manually underwritten. And then from there, then the payment is processed. so you're not getting paid for, I would say two to seven days, which is substantially faster than traditional insurance.

Dalton Anderson (04:32.504)
But now we have an emergence of technology that allows payments to be processed at a much faster way, able to verify the claims that the insured is making all within minutes, not days or weeks.

And traditional insurance does have its space that it needs to operate in, but there's also space for parametric insurance to work. And that's something that's pretty interesting to me. Parametric insurance is not necessarily untapped, untapped in certain areas. Like California has a pretty good parametric.

program for earthquake. And there's some, some pretty cool stuff with blockchain in blockchain and smart contracts in Africa related to crop yields. And so if your crop yields aren't, aren't meeting a certain amount because of the rain majority of farmers in Africa are, I forgot the exact terminology, but there's a, there's a farming term that if you're farming for your family and to feed your family, it's different than

farming to sell, but majority of farmers in Africa are farming to feed their family. And so everyone pretty much farms. then, I don't want to say everyone, but you know what I mean? Like majority of farmers are farming to feed their family and they're working their own farms and it's for their family. And if they don't get a good crop yield, then they are run at risk of malnutrition and not eating enough. I mean, they could.

buy or purchase crops from somebody else. But if you put in all that money and you're expecting, cause you have to put in money and time to have the farm have any yield. And then if the farm doesn't yield, then you've got all this wasted investment, both in time and in money for the seeds and all this other stuff. So once you count all that in there, it's a big investment. And if you don't get anything back,

Dalton Anderson (06:44.718)
and then you have to pay for your food. It sounds expensive. they have this parametric smart contract offering and I'll get into the smart contracts and blockchain a little bit later in the episode. But basically that's the only application that I could find that utilize this new technology that enables the execution of parametric insurance to be near instant versus waiting

a week or so. So I thought that that was pretty interesting that people haven't caught on yet. we, we know in insurance, we know that blockchain and smart contracts would be great for insurance in certain applications.

but we haven't seen any actual real world attempts at this. And there's some examples like the one I'm talking about in Africa, but other than that, there, really isn't anything going on. And I think that's a process or a factor of people working in insurance, not being that technical, the exciting new shiny things is not insurance. Like that's, you know, that would be like rocker tree or

social media or AI algorithms. And so those folks that could do the things that the smart contracts and this other stuff, that's not that complicated. I I say that when I don't know how to do it, but on a general sense, like the logistics of it, it doesn't seem that bad. It hasn't been done. And the efficiency gains that you would get from that are immense, both from the customer satisfaction and from being able to

process these things without the administrative burden of having someone look at it, verify it, send the money out, the money would just send. So that's parametric insurance.

Dalton Anderson (08:47.5)
I talked about the benefits of parametric insurance, being it's a predefined metric that if that metric is achieved, then money is paid. if that metric is not received, if that metric is not obtained, then money is not paid. And so it makes it very clear to the insured, and I hear this all the time, people are getting very confused about what is paid and what's not paid.

When do I get payment when it comes to insurance? And a big thing that happens in Florida, unfortunately, is that people get insurance in Florida and then they realize that their insurance policy doesn't cover flood and then their house floods and they file an insurance claim. And then their response from the insurance company is, like, sorry, like your policy doesn't cover flood. You didn't get the flood coverage.

And that's an issue both on the policy document side and on the agent educating their insured. That's a separate issue. But I use that as an example to just state this is that the insured normally doesn't know really what's in the contract. And it's not necessarily clear on like what's getting paid and what isn't getting paid.

And if you work in insurance, you'd be like, oh, I know exactly what it is. If I go to this form number and I read it and then I interpret the language and then I can know what's being paid and not paid. But no one's reading these things. They're like 100 pages and they've got a whole bunch of legal jargon. People aren't reading this. So if you had a predefined metric, say, if it rains two inches, I'll just stay with my example I had earlier. If it rains two inches.

then there you go, you get paid. Either your reign's two inches and you get paid or it doesn't and you don't get paid. That's it, it's very simple.

Dalton Anderson (10:56.118)
And the simplicity and the speed of payment, I think, would be a welcomed addition to the insurance world, especially for things that are particularly challenging. But the challenges with parametric insurance is you could put in some clawback clauses. Like I saw one competitor for shipping delay, maritime shipping delays, is that you have to provide

proof of your loss and then after that payment will be made. But then there's a clause in there that if you're overpaid, then we have the right to claw back the payment that was sent. And that's by Marsh Insurance. And if you're not familiar, Marsh is massive. So one of the issues with parametric insurance, if you have this pre-agreed upon clause, one, the clause might not hit, which

Obviously it's not supposed to hit all the time or else I wouldn't be in business.

But if the clause is hit, you may or may not have losses. Like if your losses are more than what you had coverage for, then you just won't get paid any more money. So with traditional insurance, you might have $100,000 worth of coverage. And then a claim happens and it might be, you 25,000. You can still be covered. And then you could be up to a total loss, which is called a total loss. You could lose your whole home and

the coverage, full coverage we get paid out. With Parametrics Insurance, it's a predefined metric, right? So say this two inches of rain thing, two inches of rain falls at your house. It shouldn't damage your home.

Dalton Anderson (12:45.454)
And if that happens, money will be paid out, although it's not, it's not, you didn't cause you any material damage. It might cause you inconvenience, but that's the issue with parametric insurance is that you could, you could have a loss occur, but no money will be paid out because it didn't meet the metrics. Or you could have a loss that occurred because it met the metrics, but then your loss that you actually

had isn't the same as what was paid out. there is some issues and also parametric insurance would be something that would come over the top for the most part. You're not gonna have full coverage with parametrics because it's not a full coverage policy because the money's only paid out when the metrics are achieved and so you're not gonna have coverage all the time for anything.

So if you had something that wasn't on the contract, like somebody got hurt in your yard, which is like a liability thing. Like somebody climbed in, like you had a swing on your backyard, which a child could see the child climbed over to get into the backyard and got hurt. And that'd be a liability claim. I forgot the actual terminology for that, but it's something like, you know, the

It's a child doesn't know any better. It sees something that it's supposed to be fun and safe and then climbs over, gets hurt. It's on you.

Dalton Anderson (14:22.604)
Okay. So anyways, so you just wouldn't have coverage because we're talking about two inches of rain per day and a child got hurt in your yard. Like you don't have coverage for that. So the next thing that I want to talk about is the ideas that I have came up with. And I also used AI to help me research this because it would have taken me too long to do so. And so I did, I read a hundred pages, a hundred plus pages of research.

about these topics regarding crypto, blockchain, smart contracts, parametrics insurance in different areas, pricing, trying to pull data, all sorts of stuff. we have natural disasters, which I think is pretty well played out. Like parametrics insurance with natural disasters is already a established area. Then you have

agriculture, which I talked about earlier where there's that play in Africa. But my issue with, me backtrack. I like the idea of natural disaster, parametric insurance, but there's just too many players in the game. But you would get good premium. So you would get good premium. There is no, to my knowledge, smart contracts related to natural disasters, but

There is quite a few people in natural disaster for parametric insurance. I think it's just too established. Maybe I could do more research on it, but yeah, I don't think so. With agriculture, it would be a tough one because one, you are dealing probably with smaller farmers. You'd have to do parametrics outside of the US.

because parametrics inside the US for farming in agriculture or just agriculture in general, it's already played out. Like there's plenty of coverage. Like people aren't, people aren't underinsured or anything like that or missing out with parametric insurance. And so

Dalton Anderson (16:38.808)
The opportunities are really small time farmers outside the country. And I don't see that there would be that much premium involved simply because we're not talking about multinational corporations or national corporations that are farming. It's really going to be a mom and pop shop. Like how much premium would you get? Business continuity. Business continuity is interesting because it

It's in many different areas, but one that stuck out was supply chain management and disruption. And that is one of the area of ideas that I came up with, but we'll run through the ideas and I'll tell you what I think about them. So supply chain and I'm looking at my paper by the way. So supply chain disruption is a

Apparently, $18 billion market and its calculated annual growth rate is 6.6 % to 2033. Given the opportunity and the feasibility, I've given it a high because of AIS tracking, the amount of governmental data related to shipping routes and tracking of maritime ships.

and real time tracking of shipments. And so you could see all that stuff pretty easily. And I'll go deep dive later on, but we're just doing an overview. Cybersecurity breach and management. They have it at 15.86 billion right now. And we'll have it calculate annual growth rate of 19.52 % up to, or going to 2033.

The issue with cyber is that you need to do penetration testing, you need to do all sorts of things, right? For you to have an opportunity, one, to prevent the attack, two, and you also have to be integrated into their systems. And the second thing is integrating the systems and understanding what's going on in the market and studying other attacks and understanding, it just seems like a difficult thing

Dalton Anderson (19:00.972)
way to run parametrics. I don't think it's really possible. One thing that you could do is have like parametrics insurance for if like stuff appeared on the dark web, you could execute like your parametrics insurance for the insured.

Dalton Anderson (19:19.598)
but that was probably the best I could get off of cyber. And I came up with these ideas from just having opportunity either from lack of competitors or calculate annualized growth rate. So the next one is energy production. Energy production currently is at 17.99 billion. So 17.99, I'll just call it 18. 18 billion, and this is clean energy production and this is energy production insurance.

This insurance industry is related to, oh, also in the calculated annualized growth rate is 4.14%. This is insurance for clean energy. So think about it as like a solar farm or a wind farm that has wind turbines. The wind suddenly changes pace and you don't have production for a couple of days and it's not meeting your monthly

production quota to power X thing or expectations or whatever forecast. And so then you have to go in the energy market and buy energy. This insurance policy would help you obtain the capital to.

Dalton Anderson (20:36.398)
purchase additional energy. And so your lack of production in those days will be protected. This was interesting. There's a couple fundamental issues with it. One, a lot of times these solar farms and wind turbine farms are in a concentrated area, which has issues with risk aggregation. So if I had a lot of exposure with solar farms and solar farms are out West for the most part, they're in certain areas.

and normally they're closer together than farther apart. If that were to occur and something were to happen, then I would lose a lot of money because all my premium and all my exposure is closer together than I would like. And then from there, it's also quite competitive.

So there's quite a few issues with energy production. And then another one that I liked was, so I'm mixing up my papers. I did back to back just so could save paper for everybody in the world. Event cancellation. Of those four ideas, the two best were event cancellation and the supply chain disruption. An event cancellation is a $1.6 billion market and has a 6 %

Calculated annual gross rate up to 2032. So event cancellation is interesting because you could target weddings. There's two million weddings a year. There is thousands of concerts and festivals a year. So you could start small. You could do weddings. The average cost of a wedding is 30 grand.

So it's substantial for a lot of people. It's one day you're spending $30,000. You want it to go right and if it goes wrong, you probably want protection. And you could probably do, you could probably do 1500 to $1,000 a wedding to provide insurance. And what that coverage is, I don't know at the moment, but definitely if you cancel your wedding, then you can't cancel, but things need to be canceled.

Dalton Anderson (23:04.3)
then yeah money could be paid regarding the weather.

Dalton Anderson (23:11.842)
That could be something, but if it's a thousand dollars, it's gotta be full coverage. Like it's gonna be like, okay, if your wedding's canceled, you get all your money.

Like a thousand to 1500 bucks is quite a bit compared to the money paid, but it's just like one day. It's like one day. mean, I don't know. You'd have to figure it out. mean, it's probably not a thousand, but I mean, definitely not like $200, but there's 2 million weddings a year. All of those weddings, maybe 10 % have

a need for wedding cancellation, event cancellation insurance. And then we'll just call it, let's just call it a.

Dalton Anderson (24:02.924)
I don't know. Let's call it 500 bucks. 500 bucks is $103 million if 10 % of weddings per year wanted event cancellation insurance. That's a lot of money and that's not counting concerts. Concerts could also pick up some serious premium, but they're higher risk given that the coverage would be substantial. Like if you did like an ultra or

or something like that, the coverage would be a rolling loud. The coverage would be quite a bit. And so would the premiums, though, but you never know. mean, a lot of times these places are.

normally held in areas where that time of year the weather is great, hopefully. So it would just really prevent severity versus frequency. But I think that there is an opportunity there. To my knowledge, there is event cancellations.

that are offered, but they're not smart contracts, they're not parametric, and the limits are not too good. so I think that there is something there that could be attacked if it needs to be attacked, I don't know. And then with the shipping, the maritime shipping delays, apparently an absurd amount of shipments are delayed, like 60%.

something like that, like 53%, no, it's 56, 56.3. It's pretty close to 60 % of ships are delayed from the port of origin to the port of entry. And so it's quite a few ships that are delayed. Not until recently, there wasn't any coverage apparently. I mean, this is pretty new to me too. So there wasn't coverage related to the delayment.

Dalton Anderson (26:10.638)
of a ship arrival related to the loss of production or revenue for a business or a company shipping goods on a shipment container. I did get to look at a couple of competitors and it seems to be that the max coverage offered from four people that are offering it are 1000 to 20. All now I was gonna say 2500.

$250,000 in coverage. But the average value for a shipment container, like one of those containers, is 1.1 million.

And so they're covering about 10 % of the actual risk of the container.

Dalton Anderson (26:59.662)
And they're using parametric insurance, but they're not using smart contracts and they're not using blockchain to do so. And their payments are a manual process and they get paid anywhere from two days to seven days later, which is pretty quick given insurance. But there's no reason why that couldn't be an like close to instant payment. Literally all of the ships attract the containers attract

Everything is real time. Like you can go on a map and you could see all the ships that are traveling in the whole world where they're at and everything's updated. Like I was looking at this free dashboard, like shiptracker.org or something. It was tracking 250,000 ships all at once. Every type, fishing ships, cargo, tankers, everything. All on the map.

I could see exactly where they were. could click on the icon and I could see what kind of stuff they were carrying and what they were doing. When's the last time it updated everything. So for me, there is no feasible reason why you couldn't have parametric insurance and the parametric insurance they're offering is if your cargo is delayed. And so like the cargo delay starts out at like six days, nine days and 12.

And so there's different payouts given the days of delay, which something that would be good, like a, like you have a severity, like, okay, if you're really delayed, like here's more coverage, like here's more payment, but the lack of coverage and my also my lack of understanding of like why the coverage is so low. get, it's probably because the frequency is so high and given that the frequency is so high, they're nervous about offering more.

coverage, which makes sense. And then I don't understand like the risk ag strategy where like you would, you would need to limit your, your exposure per port. And then you also need to limit your exposure per ship. And that should, that should spread you out. And no one is, going to be able to take over the whole maritime market because it's going to be quite, quite, quite correlated. Like if, if a ship gets backed up at one major port, those ships are diluted.

Dalton Anderson (29:25.342)
diverted to another port that delays other ships. And so one delay could just muck up the whole thing.

But those are the two ideas, event cancellation and maritime shipment delays.

Those to me have the most feasibility opportunity and.

They sound interesting. Like the maritime thing, I love and like large industrial projects. Like I watch this thing on YouTube that it's called mega projects, I think. And I watch it all the time, especially when I'm like, what's it? What's a good, what's a good mega project that's going on? And then it'll just talk about some random project in Europe or Asia, somewhere in the Middle East, Africa, wherever, sometimes in the U S North America.

And the Medica projects is like a one hour long video just going in detail about what's going on with these projects and how they're being executed. And I just find like large industrial projects interesting. And so I definitely would find ships like massive cargo ships. Very intriguing. Yeah, I would really dig it, honestly. It'd be so cool. Like I get to go on. I would would go on a ship to like, all right.

Dalton Anderson (30:48.108)
Let me check your shipment here.

But with the smart contracts, would have automation, would have transparency, you would have security. And those are all things that people are looking for. Like they're looking for something that's stable, that's not inconsistent, that is quick and cost efficient. Like you're saving money both for them and for yourself because they're not frustrated. And then you're not having to hire like a whole administrative team.

to figure out if their loss is really a loss and if their metrics that they're submitting are really real. It's just all there. Like you have a predefined agreement on the data source and the execution of the contract and there you go. And then you're good to go. Like everyone's happy. As long as things are clear in life and there's not confusion on whose role is what and who is doing

What? Then I think people are pretty reasonable for the most part.

So my main focus was the supply chain disruption and the event cancellation, both of which I'm gonna run with. And I'll have to select a actual idea sooner than later. But those are the two, these are the two promising ones that I could leverage blockchain and smart contracts to make parametric insurance work.

Dalton Anderson (32:30.274)
I don't know which one. I think the easier one would be event cancellation. And there could be opportunity, and there's opportunity in both, right? But event cancellation could be easier. But my fear with it being easier is that somebody else could see that I'm being successful, I'm raising money, and then they could just do the same thing. Like if the...

Dalton Anderson (33:00.802)
the entry, the barrier to entry is low or not high enough to discourage people, then people just come. But if the entry is a technical feat, then less people will follow. Because they'll be like, that's a cool project, but they're not gonna be like, I wanna do that. There's a difference, like I want it to be something that's...

I mean, and maybe events cancellation is hard enough as it is. Like you've got to understand the localized weather patterns in an area and then understand the frequency of the storms and severity of storms in a localized geographic area. And then you also need to take that on account. And then you have to price for that and you won't have any data for event cancellations because well, it's not, it's not as

unknown sector. So it's going to, would be difficult.

But I think the maritime shipping delays is pretty cool. Helping optimize the world. Sounds sick. But we'll see. mean, at the end of the day, I just want to get started and start building something. it could be either of those two at the moment, I think are the best. So let's talk about blockchain and how that would work. So there was two...

big frameworks or ecosystems, I would say that I was intrigued about. There's Solana and then Avalanche, both of which are good and they are building off the foundation of Ethereum. And Ethereum is supposed to be like a faster payment system than Bitcoin because Bitcoin it's proof of work and proof of work takes a long time because it's this

Dalton Anderson (35:02.008)
computer algorithm puzzle that the miners have to solve. And then once the miner solve it, then they show the proof of work. And then the coin is staked. Whereas Ethereum shows proof of stake, which is different than proof of work. where Ethereum differs from Avalanche and from Solana is Solana was built from scratch, from the ground up.

but it's based off of Ethereum, like the ideas, the approved upon ideas of Ethereum. And Solana was supposed to be, or is a, the idea was to be a high frequency transactional coin. And the idea was not to have a coin cap, to be inflationary. So the coin is inflationary. And the release of the coins is related to the

level of inflation.

And when the coins are released, it's normally just to stabilize the price and keep the prices low. Also, a couple of things that I think are cool is that it uses proof of history and proof of stake to verify a transaction on the chain. And proof of history is a delayed timestamp of the transaction. And basically, the idea behind it is it's a

computational challenge when you are putting together a timestamp. But then once the timestamp is put onto the chain,

Dalton Anderson (36:44.8)
when you are doing proof of stake, it's easier to verify that it's legitimate transaction given that you've already showed that you have a history. And then they also have this node piece where it's like node confirmation, not optimism, optimism. Node confirmation optimism where if like, and it's not crazy unique either.

But if they come to a certain level of optimism of the nodes verifying the transaction, then it just accepts the transaction instead of waiting for all the nodes to finish, which speeds up the throughput of transactions. it's.

Dalton Anderson (37:33.838)
The ability to have a massive amount of transactions go through per second is quite unique. And there's been a demo by Fire Dancer, Fire Dance, where they had done live like 880,000 transactions a second.

probably not gonna get there anytime soon, but it's pretty quick. But they're quoting, they're quoting around 88, 88,000 to 80,000 transactions a second. I don't think they've actually ever gotten to that amount of transactions in one second, given that there's not that many people using it. Like Visa has a throughput around 40,000 transactions a second.

So you can tell that there's a big difference.

Dalton Anderson (38:35.096)
the proof of history and then proof of stake.

And there's another cool thing to reduce the cost of using the coin. And that is

Christ, how do I, how do I phrase this? So there's this thing called gas fees that's associated in crypto. And so if more people are trying to transact on the chain, it costs the validators or these nodes more money because you're like, okay, like we're really busy right now. If you want to buy a hamburger instead of 10 bucks, it's 15 or it's 12.

Dalton Anderson (39:17.334)
And that's okay. Cause then if people really want to get things through, then they pay for it versus, but that affects the whole market. That affects people that are doing day to day business. That affects people that are just chilling, wanting to do stuff on their computer, whatever. And that affects people that are really trying to push things through. So it affects everybody except not everyone needs to get affected. And so

what they've done is put together a localized high end volume system. And so the, people that are trying to transact a lot and that are putting a lot of strain onto the validators, those folks would pay more than the others. Instead of everyone suffering, the suffering is select, which I think is pretty interesting. And then with Avalanche, I think Avalanche is really cool. Both of them are very cool projects. Avalanche,

has a lower throughput time. They're saying around 4,400 transactions a second. And Avalanche has some cool things like the subnet, which is supposed to scale horizontally. And the subnet is like a controlled area where you can specify how things will be executed. But also you could scale horizontally. And they're saying infinitely scale horizontally.

Okay, I'm not sure if it's possible or not, but that's what they're saying. But Avalanche has a different approach. They still use proof of stake, but they also use this like Avalanche node of consensus protocol where they use independent nodes, they use nodes to validate the transaction, and then they randomly seed select.

nodes within the network. And then from there, those independent nodes verify the transactions. And if they come to a consensus, then the transaction is put on the blockchain. And by the way, I didn't explain what a node was. A node is just somebody doing computer work. So it could be a massive data center, the ones that see that are mining Bitcoin.

Dalton Anderson (41:38.292)
Or it could be somebody's souped up computer or it could be a server rack or something. The requirements for Avalanche is like four gigs of RAM and some kind of maybe like an i5 or something like you don't need very much. I mean, you could, you could probably run stuff on like a raspberry pie.

Dalton Anderson (41:58.882)
So that's a node and they use consensus, node consensus, and then proof of stake.

I think that Avalanche has a larger ecosystem per se. I think that they have a large amount of tools for you to execute things, but they are a fork of Ethereum and they weren't built from the ground up. They're like Solana. And the difference between that and Solana is Solana has a, just is on a different level with scalability.

And the thought processes are a little different when it comes to the product or the coin. Avalanche is a fork of Ethereum, it wasn't built from scratch. And so that's also good and bad. It's an improved version of Ethereum, but it still has some of the issues that Ethereum had. The good thing about that is it's an improved version and two, since it's a fork of Ethereum, then Ethereum tools,

could be transferred easily to Avalanche. So they might have an easier go at adopting to their program, not their program, their platform. But the main issue is the scalability of Avalanche isn't as much. then the choices that they're making regarding the type of coin they want is a little different than what I would expect. So with Solana.

Solana is inflationary, Avalanche is deflationary. So basically it gains value over time and the coins are limited. And so they announced at the creation of Avalanche, they're gonna do 720 million coins, Avalanche coins. And these coins are also burnt during a transaction. So some of the coins are removed.

Dalton Anderson (44:07.374)
from circulation throughout transactions. So it's 720 million and then 50 % of it's owned by investors or.

founders and then like 10 % is owned by the foundation. So it's like really like 60 % of the coins that are in circulation are owned by those groups.

So, in my mind...

One group is trying to be one of the best high-throughput transactional protocols in the world to power the ability to transact in a decentralized manner, either with Web 3.0, smart contracts, blockchain, whatever. And the other is trying to pitch a value proposition.

I think they're both good projects, but for the sense of like transacting for like low fees and long-term stability, Solana I think is better simply because they're not trying to make the coin more expensive. They want people to use it all the time. And so if you make transactions expensive or you make the coin expensive, which is required to do stuff on your platform, then yeah.

Dalton Anderson (45:35.31)
I mean, it just becomes difficult.

Dalton Anderson (45:39.8)
So that was Solana and Avalanche. And there's one more, it's called Chainlink, which I think is incredible. Chainlink is really cool. After doing research about all these cryptos, I'll have to use Chainlink if I want to do parametrics. think Chainlink would be the way to communicate with the smart contracts for each platform. And Chainlink is the bridge between the blockchain and smart contracts.

and I guess the real world activities. So whether data, government data, any type of Oracle like data source chain link is the chain that links both the real time updates of data to these blockchains.

Dalton Anderson (46:31.798)
And it's pretty cool simply because if you wanted to do parametrics, could go data from Chainlink, data from Chainlink linked into your smart contract, either on Ethereum or not Ethereum, Avalanche or Solana. I said Ethereum because

Avalanche uses the same language to manage smart contracts as Ethereum because it's a fork of Ethereum Avalanche is. And then Solana uses Rust, which is a low level programming language that Solana was built in.

So given that.

Dalton Anderson (47:14.732)
My selection is Solana at the moment. I think that's pretty firm, it's pretty firm. No matter what option I pick for the actual pursuit of the idea and building an MVP, Solana would be the one I would choose. And they actually have an event in like May in New York. So I might have to fly there, check it out. I think that'd be pretty cool.

Dalton Anderson (47:39.598)
Well, that's it. So I wanted to provide an overview of my progress of vetting an idea.

I have to vet an idea, get an idea, find an idea space, which I've done. I find a couple of good ideas, which I've done research them. That's done. The next thing is to find out all the competitors or the legality of each idea. okay, like that might be good idea, but is there kind of regulations preventing me from doing this? And then keep pursuing a co-founder.

and why I'm doing all that, start building. So I haven't researched it much, but I think I'll build in Go simply because if I have a co-founder and myself and we don't have the materials or the resources to hire somebody, Go would allow us possibly to outsource some of our development work. And the reason why

I'll be more willing to outsource go than another language is that go.

is very strict. Like in one programming language, you might have 12 ways to do something. In Go, there might be two. And Go is very simple. It's very strict on the things it can do. It doesn't allow much expression. And Go is built for like massive companies like Google, who was the creator, to prevent engineers from going off the rails and building something that they think is good. And it might be good, but it might be good, but no one understands it or...

Dalton Anderson (49:21.356)
It might be good, but not optimized or whatever the issue is and go just cuts out all the fluff. And it was like, okay, this is the code. Here it is. There's no decoration. There's no nothing. It's just function. Just everything is stripped out. It's just a roof and walls on there. Like there's no decoration. It's just brutalism at its finest. And that's how I would describe it is that go is brutalism of programming language.

So that's why I would select go, but still working all that out. Not there yet. And figuring out how I'm going to store everything, building out an application, so much work. But, and I'll get it closer, but once I get a fully fleshed out idea, then I'll probably shoot my shot and apply to some incubators. And if they accept me, I'll, well then that's GG's.

I am going to be on my way then. So we'll see how it goes, but I'd love to find a co-founder. That's on my list. But wherever you are in this world, good afternoon, good morning, good evening. I hope that you enjoyed listening to today's episode and found it intriguing and appreciate my updates. I thank you for holding me accountable for the things I say on here, even though I don't know you, me saying what I want to do.

helps me execute simply because I said I wanted to do it to all these people and they know at the end of the day if I did it or didn't do it. And so it just helps me hold myself accountable and I appreciate that. But anyways, I hope that you had a great day today or tomorrow whenever you listen to this and I hope you listen in next week. See ya. Thanks.