On July 16, the CEO of FTX posted a series of 40 tweets to talk about 3 areas that Sam Bankman-Fried believes can be completely changed through Blockchain. The following article will summarize the main ideas of this CEO’s tweet.
Blockchain Payment Utility
Sam gives scenarios where users get stuck:
Time consuming transaction processing, complicated procedures, high charges when using international payment and money transfer tools such as Credit card, Western Union or services of banks.
According to Sam, Blockchain can help solve these problems. Simply, the two parties only need to create 2 wallets and transfer money via Blockchain.
Example: Transferring 50$ through Solana network only cost 0.0002$ and 12 seconds processing. Blockchain allows anyone to create a wallet and use it to send and receive tokens. Those payments take seconds to process, costing a penny.
Simplify the financial market structure (Market Structure)
Sam explains that to complete an order to buy shares must go through a process that requires the participation of many intermediaries: Brokerage platforms (Robinhood, Schwab), Banks, Securities companies (Citadel, Virtu), Stock Exchange (NASDAQ, NYSE),….
A successful transaction can sometimes take several days and the coordination of all these organizations. It only takes one step of a problem that can affect a user’s entire stock buying process.
This process was really problematic.
Specifically, in early 2021, the meme stock craze pushed the stock prices of GameStop, AMC, etc. to skyrocket. The market is extremely active at the moment, the sudden increase in trading volume puts pressure on the trading system and platforms, it takes several days to process all orders from users. The pressure is so great that CK (Robinhood) platforms have to restrict trading, making users unable to buy or sell these tokens, causing great damage.
How does blockchain solve this? The process of buying tokens is very simple, just an account on the exchange has been deposited and clicked BUY. On FTX, everyone can buy/sell directly to the exchange, eliminating the risk of having to go through too many intermediaries like securities.
Connecting social networking platforms
Currently, users have to operate on many social media platforms, so it is difficult not to be able to fully access information from each platform.
For example, you tweet something but your friend only uses Facebook, how can they interact with this tweet? What about Blockchain? Instead of posting an article on Twitter, we will send it to Blockchain. By connecting all platforms, Blockchain will make it easy for anyone to interact with articles on any platform.
These are 3 of the areas that the CEO of FTX believes can be completely innovated through Blockchain. And to do this, it will take another 3-7 years. At the same time, Sam also did not forget to call on developers to focus on building good products instead of just creating projects to profit from users.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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