In this chapter, the young protagonist is introduced to the world of alchemy. He learns that he has been selected to participate in a competition to find the world's best alchemist. He also learns that his father has been tricked by his uncle into believing that the prize money has been spent. He is also told that he will not be able to get the money back if he does not participate in the competition. Instead, he will be provided with a storage ring, which will enable him to practice his alchemy for at least 10 years.