When talking about web 3 and blockchain decentralization is probably the first word that comes to our mind. But many believe that current networks and consensus mechanisms in the crypto space lack true decentralization and some even argue that true adoption of blockchain is only possible if we achieve 100% decentralization. In this interview, we had a chance to talk to Victor, who is a serial entrepreneur and has found multiple successful projects in the blockchain space. Let's learn about his journey and what he has to say.
Who's the Guest?
🎤Name: Victor Smirnov
🙌What they do: Victor is co-founder of Humanode.
1- Please brief our audience about your journey as an entrepreneur, until your current position at Humanode?
I started my journey as an entrepreneur in my university days, back when I was living in Moscow. I and Datto, Humanode’s co-founder, are on these paths together. We had multiple successful startups. Some of them were complete failures. Luckily, we haven’t wasted a lot of time on those and just moved forward with new ideas.Â
From 2012 to 2015, We accelerated and founded a couple of projects. Some of them were a gamification app that allows people to meet in real life. That startup was a complete failure mostly due to development issues. The next one was easier to develop and had a better business model. We created a marketplace for international marble trading. We also built a non-profit startup Paradigm Research.
2- You just said that your first project was a failure and the second one you started had a great business model. What do you think as an entrepreneur is a key to success? A good idea or a working business model?
Everything should be aligned. After finding the idea, it's important to test out the unit economics of the business model to see whether it works in real life and if the assumptions of economic models are right. And then move forward with the growth bit by bit.
But of course, it's impossible to start a business without a great idea, because it should inspire you. And you have to make sure you're ready to dedicate the next few years to working on the idea. Or if we're talking about a bigger project, like Humanode, you should be ready to spend 10 years working nonstop on the project.
3- Your education isn’t in IT. So what were the events that pushed you in pursuing your career as an entrepreneur in IT, specifically in blockchain?
I think I never doubted that my career will be connected to IT. I am an international economist and I would say that it helps a lot because without knowing the economics behind projects, you can't even start them. You can't even raise the first funds or make your Economic model work, because you always have to find the constraint and the focus. Once you solve the constraint, you move on to the next one. This is all the economic logic behind it.
4- Enlighten us on how you have made an impact on the blockchain and crypto space through your expertise?
Well, I wouldn't say that the impact is huge. I think the huge impact will be brought finally now when we are establishing Humanode, which is changing the power structure of the crypto. Before that, over the last five years, we have been publishing free unbiased reports, both durational and deeper reports on the blockchain and crypto ecosystems. We never took any money to promote projects. Paradigm Research is non-profit. Sometimes, we do receive grants but only after we have already done something for the ecosystem.
5- Tell us a bit about Humanode. How did you come up with the idea? And is it something that you believe will bring change in the space? Or is it just like many other overrated projects?
We have seen the crypto and the blockchain industry rise. It all started in 2017, we were focused on what researchers in crypto were trying to achieve. We discovered that crypto is not truly decentralized. I mean we know it’s open-source, anybody can create a wallet.Â
While all of this is true, the infrastructure and the control points are in the hands of mining pools or the big staking validators. They hold the majority of the infrastructure and basically in any business or industry, you see all players are profit-driven. We always wanted to create a system that doesn't depend on mining and staking money. Since this is the only way you can make the network truly decentralized.
When Datto realized how much the biometric industry has evolved over just a few years, we knew that this was an opportunity to create something new. We were already working on R&D for privacy and blockchain technologies when it became clear: if you combine these two areas of technology, then we can finally achieve 100% decentralization!
At the same time, true dedication will become possible because each user gets their incentive system rather than relying solely upon profits incentives found within today's corporate-centered networks which often lean toward nepotism instead democracy.
6- People are driven by incentives in case of proof of stake or proof of work. So what's the main incentive that will bring people to run a node in the Humanode network?
There is a little financial incentive in our network, but it's not overwhelming. And the main incentive for joining the network is the fact that this would be the network of contributors.
So in the current crypto ecosystem developers who write codes never control the network. They only write the codes and get their salaries. In our case, they will be running nodes. They will have real voting power over what is happening in the network.
Basically, we are looking to bring Power to the People who contribute to the network.
7- The blockchain industry has been the talk of the town for a while now. Considering this, How do you think emerging projects like Humanode can carve out a niche for themselves in this space?
Well in blockchain, eventually we see how older networks are building bridges through each other. And, crypto is one of the best industries to cooperate even with your competitors, because you can always find grounds to work together.
But at the same time, it's hard to compete if you're not making anything special. If you're just providing your token as a reward for liquidity, you will never be able to carve a niche for your project. So, doing the same thing which others have already done is when the projects do not succeed.Â
And, if you talk about infrastructure like Humanode, which brings completely new use cases to the industry enabled by private biometric identities, then it's really pleasant to work in crypto as you know, people are ready to cooperate and integrate.
We think that Humanode will become a substantial piece of the crypto infrastructure like chainlink became one in 2018.
8- Moving on to the next question. Humanode announced a Hackathon “Hack the Sybil”. What is your team looking to achieve from this hackathon?
The mission is to show how you can build Dapps and DeFi networks on top of our technologies using both Humanode on-chain data and private biometric identity solutions. We want the participants at hackathons to think outside the box when it comes to their innovative ideas for new crypto applications that will be created in this stage with help from Humanode Network!
Humanode is looking for developers who want to be part of something new. With our hackathon, you'll have the opportunity not only to create an application on Humanode’s blockchain but also to get feedback from experts to make your project even better! We can't wait until hackers start building with us because we know it will change everything -- once these projects are done they may inspire others worldwide, which creates endless possibilities as well.
9- So Is there any incentive or prize for Hackathon winners?
The $30,000 prize pool is an exciting opportunity for anyone who wants to make a difference in the blockchain space. Whether you're looking into improving user experience by implementing biometrics or creating new governance schemes that might be more democracy-oriented than current models-- there's something here!Â
So we picked up five tracks and the winners will take home a cool $6000. But that's just scratching of course, as there is so much more to this event than meets the eye! A pool was created by our partners FaceTec & Republic; they're closely following everything happening inside these walls with 3 team members from crypto-company 'Republic' participating as judges--and they'll be happy to continue funding successful projects born during the hackathon-- developers have opportunities at their fingertips if you ask me!.
You can register for Hackathon here. Or join Humanode's discord server for participating.
10- Coming back to web 3.0, what according to you could be the next big change in the industry?
You know I'm a little bit biased. The last wave of crypto adoption has ended and we're entering the bear market phase, which means that previous waves were fully speculated even worse than before! And looking at all this money flowing people forget about what made us believe in cryptocurrency from day one - core principles like anonymity or freedom from third-party interference.
So I think that there will be no adoption of web 3.0 whatsoever until we make the industry truly decentralized. That's what we are trying to change as Humanode. And of course, until we establish proper on-chain identities, the user experience can't compete with the web.
I also expect the next wave will finally be AAA games based on blockchain. And I expect modular blockchains to become functional and become a thing because only with modular architectures, we will be able to scale the system to not millions of people, but finally to billions.
11- What are the top challenges you currently face as a founder?
As a founder, you're always getting new challenges and opportunities. I've gotten so used to this constant change that it's hard for me to say there is any one major challenge right now -- the fact remains though; if we want our businesses (or ourselves) successful then attitude towards these hurdles matters just much - if not more than anything else!
I guess what defines success in entrepreneurship—besides building something great!--is how easy breezy things can be at times versus other periods where everything seems testy or poised on the verge of explosion.
12- The last question. Which non-paid activities would you be keen to take part in?
Unfortunately, there are still many industries in need of research funding, but they don't receive the attention and investment from investors because these areas haven’t yet generated revenue. I want to be part of projects focused on this type of work so we can make progress toward solving deep-rooted problems.
I am always looking for ways to help people. I have a huge passion for making education better and that's the only thing that can save humanity from self-destruction!
The next big project on my radar is funding these developments, especially if they're not generating any cash flow but will make all of our lives better eventually like deep technologies do today through laboratory research done by scientists who don't even get enough money just so their family members survive each day while working hard at what they do best--building revolutionary ideas into reality with no resources whatsoever!