While critics cast doubt on some of the use cases of blockchain during the crypto winter, one of the most prominent community figures made some points that cement blockchain’s status as a disruptive technology.
On Twitter, FTX crypto exchange CEO Sam Bankman-Fried highlighted the use cases for blockchain and Explained How some industries can benefit from integrating technology. According to Bankman-Fried, blockchain technology could make payments easier, solve stock market loopholes, and revolutionize social media.
Bankman-Fried said there are several issues with cross-border payments. The CEO of FTX cited several examples that highlight long wait times and middlemen who make fees high and often add uncertainty to transactions.
According to the executive, blockchain solves this long-standing problem in finance by replacing the long traditional process of creating a wallet, the receiver creating a wallet, and then sending the balance. Bankman-Fried argued that this eliminates waiting times, replaces the fee structure and resolves the uncertainty factor.
Furthermore, the CEO of FTX also pointed out that blockchain could replace the entire stock trading process which has its fair share of flaws. Bankman-Fried highlighted the issues it met with the infamous GameStop short-squeeze, where retailers closed due to settlement risks, Bankman-Fried said token stocks are the answer.
26) Let’s say you tokenize shares.
Instead of waiting 2 days for the settlement, you can simply swap the AAPL-token <> USD-token on the blockchain. Which, remember, takes about 10 seconds and costs about $0.0002 in fees.
No balance settlement uncertainty or risk.
— SBF (@SBF_FTX) 16 July 2022
The executive argued that similar to payment solutions, tokenized stock trading executed on the blockchain can complete transactions in a matter of seconds, and reduce settlement uncertainty with much lower fee structures.
related: Nifty News: Day 1 of GameStop NFT, Limewire Trend and GameDev Attack
Finally, the CEO of FTX said that social media is isolated and not interoperable. The executive explained how a single user has to go through multiple apps to manage various platform-specific applications.
Bankman-Fried argued that blockchain could potentially make social media more interoperable, allowing messaging across different platforms. According to the executive, it is possible to convey messages from one social platform to another by the use of public chains.
