Monad is a Layer 1 blockchain that achieves 10,000 transactions per second by using a new execution client written in C++ (based on the Ethereum Virtual Machine) and a new consensus client written in Rust, which allows it to break the traditional blockchain trilemma constraints that limit other chains to lower throughput while maintaining security.
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Can Monad Save & Scale Ethereum? | Eunice GiartaAdded:
One of the great features of the Monad blockchain is it's very fast. I read 10,000 transactions per second. How are you able to achieve that but also maintain security?
>> That's actually one of the hardest problems to solve like being able to have both speed and security at the same time. We know this because of the, you know, the blockchain trilemma that has been touted for several years at this point. Monad is different because it is no longer bound by the same constraints that other chains are.
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Link will be in the description. Hey everyone, welcome into the thinking crypto podcast. I'm your host Tony Edward and we are recording at station 3 in New York's financial district and joining me is Ununice Giarta who is the co-founder of the Monad Foundation. Now the Monet Foundation is an independent organization dedicated to supporting the development and adoption and growth of the Monet blockchain protocol with focus on speed, decentralization, EVM compatibility and security. Ununice, great to have you.
>> Thanks for having me, Tony. It's great to be here.
>> Ununice, I am excited to chat with you.
Uh, last year there was a lot of news around Monad and I'm excited to dive into the details, but let's kick it off with your background. Where are you from? How the hell did you make your way into crypto?
>> Yes, great question. Uh, it was a very securous route uh making my way into crypto, but I am a California native.
Uh, I grew up in the central valley and was there all of my childhood um all the way through high school. Um and then I graduated high school, went to the east coast uh for college, um which is uh went to MIT, studied computer science and undergrad um which is where I met Kion Han who is uh the co-founder of Monad Foundation alongside my work. Um >> and from there I went more into a a typical path. This was I graduated in 2013. So, this was like just around the first time that Bitcoin was starting to get on folks's radars. Um, actually a year after I had graduated, um, uh, MIT actually gave every single student $100 worth of Bitcoin in 2014. Yeah. So, I just missed it, but you know, what could have been? Um, >> but I graduated and went into um, traditional finance. I worked as a rates exotics trader at BFA. Um, and then transitioned into technical product management, uh, and business development at a fintech company. Um, honestly, just right up the street. I was at 140 Broadway. Um, and from there, uh, was continuing down the product route at Shuttertock. Um, then I pivoted entirely away from technology. I had a little bit of like a quarter life crisis, so to speak. Um, and I worked at a restaurant, worked at Jean George, um, as a chef departi in the pastry department. Um, just before the pandemic, very wild, very different experience. Um, but because the pandemic hit a year later, I found myself uh, being blessed to evaluate the professional career all over again. Um, and eventually I found my way into crypto because I had a lot of friends who uh from college or or from professional life transitioning away from more of the traditional finance route into crypto, whether it was as a VC or as a crypto founder. Um, so to me that was like, okay, well either everyone's gone batshit or there's like something real here. So I started doing my own research, learning a little bit more. Um I remember when Polygon was still madatic.
>> Um and I came to discover smart contracts and was just floored by it. Um I remember in school there was a module in in yeah there was a module in school where we were talking about uh distributed computation and Ethereum was like bringing distributed computation to life. So uh I had no idea that smart contracts existed. I was fascinated and was like okay there's something here.
there's something real. I want to be a part of it. Um, so fast forward to 2022, um, early 22, um, you know, previous college classmate, um, Kone and his, uh, co-founder James Hunaker, they were starting Monad. um I was looking for potential opportunities to to deep dive into and so uh I was brought on board and um that is the story of me getting into crypto and and me um being a part of the Monad story.
>> So it's it's fascinating that you mentioned 2022 you you know with everything that happened and the gravitational pull of crypto brought you back in and and now you're a founder which is really cool. um when you were at MIT because I remember hearing about courses at MIT around blockchain and crypto and I think former SEC chair Gary Genser thought there I think he might be back there but um was there any courses or anything happening there when when you when they were giving way to Bitcoin and so forth?
>> Yeah, at the time uh of when I was there none of those courses existed yet for blockchain. I think it only started appearing thereafter, but I've actually had um a few classmates who have gone back to uh lecture for special series and things like that at the Sloan School. Um, so a little bit after my time, um, and I think is maybe why it took me so long to find my way into the the blockchain space because when when I was just graduating, it was still kind of like a nent, um, technology, you know, people were using it for black market uh, purchases and things like that. And it took me a while took me a while to circle back to the technology and look at it from a lens that wasn't as skeptical.
>> So, what's it like looking back? um given that you know you saw a bit of it in the early days, bits and pieces along the way and to see where it's at now it's grown significantly as an asset class as an industry and the technology is being used by the biggest institutions in the world.
>> Yeah. Um I really only started taking a look at it with a closer look in 2021.
Um so that's the perspective that I have and of course anecdotally from the earlier days before that but even within the past uh you know four years or so it's four or five years ago it's been fascinating to see the the change sorry the changes uh the uptake um yeah and to your point I think it's becoming more and more of a uh forcing function like you know institutions um enterprises are not ignoring it anymore but starting to consider what opportunities there are there are for whether automating certain flows or um breaking down some barriers to um business use cases for blockchain.
M so tell us about monad and what is it what makes it unique and uh you know what's kind of the mission >> fundamentally monad's mission is to scale Ethereum that has been the mission from the very beginning um when we first started out in early 22 all the way to now which I think is pretty cool that the mission has stayed the same for the past like you know four years of working on this um project and and technology um what makes it unique though is the way in which we uh have in the way in which our team has been able to satisfy the scaling needs of Ethereum.
>> Um, and you know, we've seen a lot of conversation come about recently about the the method by which Ethereum has chosen to scale up until now. Um, but with Monad, the idea has always been fundamental performance at its core. So, how that translates is introducing a new technology by having a net new um execution client and a net new consensus client. um from scratch. So the execution client is based off of the Ethereum virtual machine written in C++.
Um the consensus client written in Rust.
And what makes that unique is the fact that you can tap into the inherent performance that those languages afford as a part of the development cycle.
>> Pardon the interruption. Hi, I'm Tony.
I'm the host of the Thinking Crypto podcast. I wanted to ask you if you can please support the podcast by hitting the like button, subscribing if you haven't as yet. You can leave a comment below as well. And if you're listening on a podcast platform such as Spotify, Apple, or wherever you get your podcast, please be sure to follow and hit the fivestar rating. I'll let you get back to the content. Thank you so much.
>> So, a a big question I think a lot of folks going to have, is this a layer two? Because Monad is stated as a layer 1.
>> So, how is it helping Ethereum to scale?
Like, is it running parallel on top below? How does what's the construct there? Yeah, Ethereum is entirely a separate L1 altogether. So, it is not Ethereum. However, the virtual machine that uh exists to run the blockchain is based off of the Ethereum virtual machine spec in the same way that there are a couple of other um alt EVM uh blockchains out there. Monad, I guess, would also be like an alt EVM uh blockchain. So uh what is cool about monad's version of the EVM2 is that it follows a spec to a te such that composability um or rather portability of existing smart contracts that are deployed on Ethereum can seamlessly migrate to monad with essentially no code changes.
>> Very interesting. And then the protocol I read is monad bft. Is is that proof of stake or what is what what is that protocol? Yeah, great question. So the BFT part of Monab BFT stands for a Byzantine fault tolerant. Um, and so it's a type of consensus uh mechanism basically. So Monab BFT is the name of the consensus uh mechanism. Um, it follows the assumptions and security guarantees that you get from BFT protocols. So that means uh for uh for a network to continue to ma to run and m be maintained um 2F plus one nodes uh must be healthy in comparison to an f number of faulty or or bad nodes so to speak. It basically means that it's very resilient to uh potential attacks um especially in the case of a decentralized network which is something that Monad does uh support the the validator network right now um supports about 200 active validators in the active set. So they're those are the nodes that are not just participating in the network but are also voting on behalf of the network and it's all around the world. So geographically distributed truly decentralized and you gain security guarantees through those properties.
>> So one of the great features of the Monad blockchain is it's very fast. I read 10,000 transactions per second. How are you able to achieve that but also maintain security? Yeah, that's a great question and that's actually one of the hardest problems to solve like being able to uh have both speed and security at the same time. We know this because of the you know the blockchain trillemma that has been touted for several years at this point. Um, Monad is different because it is no longer bound by the same constraints that um uh that other chains are in a sense that if we think about the trillemma that's often uh because you're using the same code base and so there's only a few triggers that you can change with with a given codebase. If you think about like um a string like a tied string um with three different pegs of like you know the trillemma um if you pull on one peg to make it like uh further from the center then you have to inherently push in the other two pegs based on like the confines of that string. Um now with monad that string no longer applies or rather what we've been able to do what the technology has been able to do is expand the perimeter of that string um because it is net new technology. It's a new client uh it's for both consensus as well as execution. So the security guarantees that the new consensus mechanism uh provides is provided because of the communication uh optimizations that it inherently has.
the the way that the nodes come to consensus is way faster. The the roundtrip times are much more efficient.
Um and not only that, but there's also efficient message passing as well. So that's just a very high level way of of breaking it down.
>> Recently, Vitalic Bdderin tweeted out about rollups and layer twos and uh that had a lot of people a bit confused and wondering what's happening. But it's also maybe a confirmation of what Monad is doing as a layer 1 that is compatible with Ethereum. Do you think in the future given what Vitalic is saying there's less layer twos and there's more uh parallel chains so if you want to call it that like Monad >> potentially yes um I think it's very tricky to scale at the L1. Um and that is probably why we've seen the methodology of scaling via L2s up until this point. um the problems that Monad has solved is continuing to solve is hard and is challenging. So that might mean that the L2s that do stick around have to find the right type of PMF. Um and we've seen some examples uh a few examples of like app chains that have been successful. Um so you know that that might be a route as well. But I fundamentally believe and what we're doing at Mana Foundation, we believe that ultimately the L1 layer is going to be what facilitates the the future of finance and the future of onchain activity because it provides the level of security guarantees that you need um and that institutions may need and that enterprises may need. it uh provides a level of composability as well. Um because if we continue to live in a world where app chains sorry where apps are extremely siloed from one another the uh experiences and the benefits of being on chain are quite limited. Um so L1's afford a lot more than um what an L2 can afford.
>> So dumb question for you so I make sure I wrap my head around it and maybe for the viewers and listeners as well. So, Ethereum has these layer twos and Monad as a layer 1. Will it also have layer 2s or how are you able to, I guess, segment the different businesses and institutions that are building on Monad?
How do they maintain privacy within what they're trying to do? If they want to keep certain things private, is it like side chains within within Monad? Some whatever you want to call it. Is it kind of like that?
>> Potentially. Ultimately, um, Monad is pretty awesome in that like there are opportunities to scale specifically at the L1 level, but for business functions that might need a specific layer of privacy or um, you know, like the way that intranet exists for certain companies versus the internet, um, that's kind of like a a separate chain that might be able to communicate back with a bridge or something back to the main chain. That could be a possibility.
Right now though, the focus for Monad Foundation is making sure that the primary Monad L1 chain is performant um and has all of the needs and fundamental um expectations for most if not all use cases.
>> So let's talk a bit about the use cases.
What are you seeing folks build on Monad? Is it uh tokenization? Uh I don't know whatever else stable coins or whatever it may be. What type of things are you seeing? Yeah, I think it's a combination of a lot of things.
>> Okay.
>> Um but two of the things that stand out to me right now um both from like where I imagine we'll continue to progress um and what seems to be grabbing people's uh attention right now is one um high frequency finance or what we're calling high frequency finance to mean uh the adoption and migration of mainstream finance flows on chain. Um so this could be you know pretty complex things like global payments or crossber remittances um you know treasury management things along those lines um and then we're also seeing a lot of AI use cases and crossovers um and so I think that there may be a future and we're already seeing snippets of this of like uh autonomous agents um acting on behalf of users or institutions and managing certain you know flows. Um, of course, I think there's some uh there's some needs to ensure that those agents operate with a certain level of uh risk parameterization and compliance, but I think we can definitely get there.
>> Yeah, for sure. And I'm excited to see how AI agents are going to operate wi with the blockchain tech integrated. Uh, you know, we I've talked to a lot of folks about this. They're not going to use cash, obviously. They're going to use stable coins and digital payments.
Same thing with humanoid robots. They're not going to run around with cash or wallets or something. You can have like a crypto wallet built in and running on blockchain rails, >> right? And actually, that's something pretty exciting with Monet as well. Um, Monet as a protocol supports both ERC uh 8004 as well as the X42 standard. It enables trustless agents as well as um this payment standard that uh AI agents could potentially utilize. So, it's a pretty cool unlock.
>> Yeah, exciting new world. Uh, I could imagine having multiple AI agents going out and doing things for me uh while I'm sleeping as well and then having a humanoid robot which is also using the same tech. I don't know going to Home Depot and getting getting me something.
>> It's pretty wild to think about that.
Um, I read recently that uh there is a multiverse hackathon. Tell us about that. The idea behind Multiverse uh is to be a playground for experimentation to see how agents act and are enabled by a chain that has um in some sense like boundless creative potential by having that element of high performance, low fees um and uh hopefully an element of fun and just see what happens.
So we've seen that uh generally in in in the crypto world they said Ethereum is the enterprise chain while Salana is the retail chain. Where does Monad uh fit?
Is it targeting all these use cases and uh while it's a decentralized network?
Anybody can come build things. Um what is the foundation targeting uh specifically?
>> Yeah, I think we're excited about different ways in which people can use Monad as a blockchain. So it's it's neither one thing or another. Um but we have pretty strong convictions that um Monad is a great chain for high frequency finance and that might look uh like a combination of enterpriseoriented or institutionally focused flows but at the same time um you know we're seeing uh we're seeing a lot of interest in DeFi and DeFi continues to be the bread and butter of what makes crypto so interesting and unique right now. Um but maybe the the transition is now a metamorphosis of what DeFi looks like >> to begin with. Um and then in the agentic space um you know we're also seeing a good number of folks who are coming in from maybe more of an exploratory perspective. Um others who might be looking for utility plays in um in deploying LLMs uh in a you know decentralized manner and seeing how different clusters can work together in a distributed manner. Um, so yeah, I think the the TLDDR there is um why not both?
>> Oh, absolutely. I I'm excited to see what additional use cases pop up in web 3. Obviously, we've had NFTTS, we've had uh I think we're seeing healthcare and different industries try to put data on the blockchain. Now, this is a hard question. It's 2035. What does >> web 3 and crypto look like as far as adoption? Yeah, I think if we're if we continue on the trend that we're seeing now, uh it's going to be pretty much ingrained in how we operate and it might also be ingrained in a way that we don't even know it exists. Um for example, the uh worldwide web, you know, the internet HTTP is a protocol, but I think most of us don't know how it works and yet we are able to benefit from it on a day-to-day basis. Um I think it might look like that in many ways. And so, uh, examples of that are, um, X42 as an example, just abstracting away some of the manual steps of needing to specify payment or something along those lines.
Of course, like there's parameterization that needs to be put in place. And that's something that I think uh, we will need to figure out as we go um, and understand how technology can be of benefit and not something scary. We've seen this before as well with finance in general. So um you know we were talking about like how the NY floor has looked very different from how movies portrayed it in decades past and what it looks like today. Um so before the internet finance looked very different. Um the trading floor operated off of paper off of like hand signals. Um, and even when we go to the bank, we operate it off of sorry, when we pay for things or like go to the bank, we operate it off of physical checks, um, and physical cash. And while some of those things still exist today, well, there's the advent of Apple Pay and Google Pay and credit cards and things like that that all run on the internet. So blockchain I think is very much synonymous to that where it's the next uh formation of uh technology and how that will continue to shape the way in which um you know we and everyday people use a new layer of technology and making payments more frictionless uh and making payments more accessible. Um yeah.
>> Yeah, that definitely makes sense. And you know to your point of the New York Stock Exchange and we were talking like you said before the recording of how quiet it is now and uh there all these folks are looking to go 247 like crypto right crypto started it all uh 24/7 365 no holidays >> it is just running and I I think a lot of these folks are recognizing that and and that's where we see the big race for tokenization and opening up assets to the global economy and markets and more liquidity coming in and I I don't know how we're going to handle that. Maybe to your point of the AI agents will be handling some of that while we're sleeping because I are people going to be up at 3:00 a.m. trade, you know, trying to do, >> right? Yeah, we still need sleep. We haven't quite transcended that element of humanity.
>> Yeah, for sure. But it's it's pretty profound, right? Uh to think about that markets running 24/7.
>> Um even though crypto's been doing it, but with the traditional markets on chain with the trillions, I mean, that's going to be pretty wild.
>> Yeah. Yeah, for sure. And that that exactly illustrates why the technology that supports things on chain, that supports finance on chain, needs to be robust, resilient, scalable, secure, um, and have the speed that it needs to tackle and support the expected use cases that we're seeing in the traditional markets today, but for an onchain future.
>> Oh, absolutely. So, what's on your road map for this year? Um, obviously launched last year. I'm assuming there's a lot of building that's going to happen this year.
>> Yeah, for sure. Um, performance has always been uh the goal and continues to be the goal. So, as new MIP come about and and those get folded into uh client upgrades, we'll continue to see pushes towards more efficient u technology. So, faster, better, cheaper kind of thing.
Um, but alongside that, um, there's some research going into what it looks like to have, um, pre pre-trade privacy.
>> Um, so, you know, to the point where there might be some uh actors on chain who very much value the uh very much value not having people know exactly what this transaction is attributed to.
Um, there's yeah, we're looking into how that might be folded into the u protocol on a native capacity. Is is it that is that like a privacy uh element where exactly are you using like ZK zero knowledge >> potentially? Yes. Yeah. So um it's still in the the research phase but yeah ZK may be a component in the uh eventual solution.
>> I think you I I asked you a question related to this earlier but I just wanted to make sure I cover all my bases. So, can institutions build like and it's maybe too early to answer this question, but can they use Monet to build their own permission private version like an internet you mentioned inhouse, but they're bridging to the public version or or bridging to other chains like Ethereum.
>> That is certainly a possibility. Um, if that were the case, it probably wouldn't be on Monad specifically. You could potentially be using like Mona technology or, you know, something along those lines. Um the the primary focus for the Mana Foundation right now is to focus more on Mona as an L1 um as opposed to uh having like this multi- bridging system.
>> Okay. Yeah, that that definitely makes sense. So I would love to get your thoughts on the Clarity Act which is the crypto market structure bill that's in the Senate and everyone's waiting in anticipation for it to pass because that will give a a lot of clarity as it's per its name. Yeah.
>> Um and maybe we could see a lot of innovation and building and a lot of institutions come in who have been on the sidelines, >> right? Yeah. Whether it's this act or or something else, clarity is certainly needed and that's probably what has stymied innovation over the you know over the the decades that crypto has been in existence so far. Um, so certainly I think it makes a lot of sense to have very specific regulation in place so that um, folks that are acting in uh, folks can act in a compliant way and still help um, innovate and encourage the the boom of the blockchain future.
>> Yeah. Um, I'm I'm hoping they can get it done this year. I think that would be so big for the market and and not necessarily like price action, just >> builders, innovators can say, "Okay, I I know what the rules I wrote are. I can go build and >> um I'm curious what, you know, some of these big institutions are going to do after that." We're seeing some of it like you're saying, "Hey, we're tokenizing. We're looking at custody.
We're looking at stable coins. We're looking at ETFs, >> but what else are they going to do? And what else are they going to put on chain?"
>> Right? And I think we're seeing this in other countries as well. of Korea, for example, there's um more regulatory clarity um coming out as well over the next several months and in this year.
And so um some of the conversations that we've been having have uh have alluded to that as well, the regulatory clarity allowing um whether it's securities companies or banks to um be more exploratory in taking things from just a proof of concept to then uh operationally productionizing it.
>> That's a great point. Uh because I know some people they get very excited by news like oh this bank is doing this but it's like many times to your point it's like a proof of concept >> right and sandboxes I mean still great things because that's step one >> step one yeah but we want to see production right >> go to to the consumer and and uh in the real world but we need we need the rules of the road there.
>> Yeah. But the great thing about things being on chain is that that productionization can maybe happen very quickly. So there seems to be the tokenization race happening. Everybody and their uncle uh looking to put stocks on chain, gold, money market funds, and different types of uh financial products. Um Larry Frink, CEO of Black Rockck, I think a couple years ago said tokenization is the future of finance.
And boy was he right because everybody's trying to do it. And and even the SEC there, the chair, he's like, "Yeah, this is the future of the markets." So obviously there's not going to be one blockchain to rule them all. There's going to be many different blockchains used across the globe to tokenize different things. What are your thoughts on how that market is growing?
>> Yeah, I mean it's certainly growing. I think uh not including stable coins, the tokenized uh RWA market right now is around 25 billion I want to say. Um if you include stable coins that's like upward of 300 billion. So it's it's pretty massive and then growing because like you know the uh I think when we think of the financial market together we're talking trillions and then some.
Um so but certainly a lot of interest right now. Um the it's fun to hear about whom or sorry which institutions are uh interested and or starting to adopt movements toward or like continuing advancements toward of course Black Rockck is definitely one of them. Um and then we're also seeing you know JP Morgan and um NY most recently.
There's strong drivers amongst very established players um you know migrating into the space or doubling down even more. Um but that also highlights again the need for the underlying technology meaning the blockchain to have that element of reliability, security, scalability, you know all of those uh traits and characteristics that are uh expected of institutional grade technology.
Yeah, it's it's still wild concept for me to think about them putting all the traditional assets on there, real estate, gold, and uh but it's going to open up a lot of opportunities and maybe one day I'll be tokenizing my house and doing something on DeFi. I don't know.
>> I mean, as much as it's easy to tokenize everything, um I I still think there has to be like a fun a fundamental reason to tokenize something. Otherwise, we might just get into a situation of, you know, like what does this even mean, right? Um so utilities should definitely be a part of it but we're certainly seeing that today whether it's from breaking down um literal barriers or reducing you know uh settlement times um or providing accessibility where there previously was none. Um yeah I think those things should still be maintained as we think about like what are the right things to tokenize.
>> That's a great point because there has to be a market. There has to be liquidity has to be demand. Yeah. Right.
>> Exactly.
>> Just because I tokenize my house doesn't mean people will care or want it. Right.
So, uh, so there has to be >> maybe that's the future of like bed and breakfast, you know, it's like a a time share at Tony's house, >> right? That's Yeah. So, look, maybe people will tokenize rare, uh, artwork or cars, you know, things that there's a demand for, people really like or they want and they can participate, >> right?
>> Yeah. But, uh, maybe not my house, but maybe, you know, I I don't know. We'll see. depending on where it's at, you know, maybe if I go buy a place on the California coast, Santa Monica or something, maybe then.
>> Oh, yeah. I will join you in that.
>> Yeah. So, it's it's really really fascinating to see how this is all going to play out. Um, you know, with regards to stable coins, uh, we're seeing a lot of adoption that front as well. It seems everybody wants to launch their own stable coin. You know, do you see that market continue to grow? Maybe there might be some consolidation because I don't think everybody can have a stable coin.
>> Yeah, I do think that um much I do think that consolidation is probably in the future um because you know to your point there needs to be a sufficient amount of adoption and liquidity for any token to gain and maintain traction. Um, so while um a variety of stable coins may offer different benefits, um, it my personal guess is it probably doesn't make sense to have like a thousand different USD variants of a stable coin.
Um, and you know, also in ensuring that the appropriate security and collateralization is behind um, these assets as well.
>> All right, Unice, got some wrap-up questions here for you. First, if you could create your own metaverse, what would the theme be?
>> Um, I think probably something restaurant themed. Uh, so I've never played Restaurant Tycoon, but that's kind of like what I'm imagining.
Something like a a Sure. Diner Dash or like a Oh, the Overcooked game. I love that. Something like that.
>> Oh, very nice. Rapid fire questions.
Favorite food >> right now? Pizza.
>> Pizza. Uh, favorite musician or band?
Oh, I've been playing the uh Delta album from Mumford and Sons on repeat.
>> Nice. Favorite movie?
>> I don't have one, but I like documentaries.
>> Nice. Favorite book?
>> Dan Arieli. Predictably Irrational.
>> And when you're not working, what are you doing for fun?
>> Handstands.
>> Handstands.
>> Yeah.
>> Okay. Wait. I was like, wait, did I hear that right? So, I it sounds like you're uh gymnastically gifted.
>> I'm very much not, but I I've been picking up yoga a little bit and uh inversions I find very fun. So, handstands are a part of my practice.
>> Very cool. Ununice, great stuff. We're going to have to do round two as things progress this year, but thank you so much for joining me.
>> I would love that. Thanks so much, Tony, for having me.
>> Thank you so much for tuning in. Please hit the like button, subscribe if you haven't as yet. If you're listening on a podcast platform such as Spotify or Apple, please follow and leave a fivestar rating. Thank you so much.
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