FTX CEO pointed out that blockchain can make social networks compatible
Sam Bankman-Fried explained how blockchain can change payments, tokenize stocks and make social networks compatible.
While critics have questioned some of the blockchain's use cases during the crypto winter, one of the most prominent figures in the community has outlined some points that strengthen blockchain's position as a breakthrough technology.
On Twitter, the CEO of the FTX cryptocurrency exchange, Sam Bankman-Fried, spoke about the use cases of the blockchain and explained how some industries can benefit from the integration of this technology. According to Bankman-Fried, blockchain technology can simplify payments, eliminate the shortcomings of the stock market and revolutionize social networks.
Bankman-Fried said there are many problems related to cross-border payments. The FTX CEO gave several examples that highlight the long waiting times and intermediaries that raise fees and often add uncertainty to transactions.
According to the head, blockchain solves this long-standing problem in finance, replacing the long traditional process with a simple three-step process: the sender creates a wallet, the recipient creates a wallet, and then sends the balance. Bankman-Fried argued that this eliminates waiting times, replaces the fee structure, and eliminates the uncertainty factor.
In addition, the FTX CEO also noted that blockchain can change the entire process of stock trading, which has many disadvantages. Highlighting the problems caused by GameStop's infamous squeeze, when retailers shut down due to settlement risks, Bankman-Fried said the answer is stock tokenization.
The executive director argued that, like payment solutions, trading in tokenized shares performed on the blockchain can complete transactions in seconds and reduce the uncertainty of settlements with much lower commission structures.
Finally, the FTX CEO said that social networks are isolated and incompatible. The executive director mentioned how a single user should use multiple applications to manage different applications for specific platforms.
Bankman-Fried argued that blockchain could potentially make social networks more compatible by allowing messaging on different platforms. According to the head, thanks to the use of public networks, it is possible to transfer messages from one social platform to another.
