The Chief Executive Officer of FTX, Sam Bankman-Fried in a Twitter thread recognized different use-cases for the crypto business other than its use as a speculative monetary funding instrument.
According to SBF, he’s going to disregard the favored line from buyers that “you can buy tokens and maybe they’ll go up” and focus on its potential use in funds, market construction, and social media.
Payment
Speaking on cost, SBF mentioned the dynamics of transactions have modified over time with the developments of recent applied sciences and developments.
Per his assertion, funds are arduous, gradual, and expensive because it might take a number of days or months earlier than sure transactions are confirmed utilizing the standard finance techniques due to the challenges current within the course of.
However, all of those points are eradicated with crypto as “blockchains allow anyone to create a wallet and use it to send and receive tokens–including USD pegged stablecoins.”
He added that funds are processed inside seconds and so they typically “cost fractions of a penny.”
Market Structures
On the market construction, SBF mentioned the standard markets run the danger of being overwhelmed by transactions. He cited the instance of January twenty eighth, 2021, when retail curiosity in Gamestop, AMC, and meme cash rose exponentially.
The presence of a number of intermediaries within the transaction course of led to a excessive “settlement risk” forcing these brokerages to close their providers to handle the state of affairs.
As a consequence, customers couldn’t purchase or promote their belongings, whereas there have been those that obtained liquidated and misplaced cash within the course of.
SBF is of the opinion that crypto helps to unravel these issues in market construction as a result of it “can create simpler, more equitable, and less risky market structure and settlement.”
Social Media
The FTX chief famous that the core drawback dealing with social media networks is their isolation.
According to his tweet, customers of 1 social media platform are unable to see what their buddies publish on different social media websites.
In his phrases,
Right now, when you tweet one thing, and your pal pulls out Facebook, they will’t see your tweet.
But with blockchain expertise, this might change because the platforms grow to be extra interoperable. He argued that if social media networks undertake public blockchains, a consumer can ship a message on Facebook and one other consumer can see the identical message on Twitter.
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