Sam Bankman-Fried explained how blockchain can change payments, tokenize shares and make social media interoperable.
While the critics cast doubts on a number of blockchain’s use cases during the crypto winter, one amongst the foremost prominent community figures laid out some points that cement blockchain’s position as a disruptive technology.
On Twitter, FTX crypto exchange CEO Sam Bankman-Fried highlighted use cases for blockchain and explained how some industries may benefit from integrating the tech. in step with Bankman-Fried, blockchain technology can simplify payments, solve exchange flaws and revolutionize social media.
Bankman-Fried said that there are many issues surrounding cross-border payments. The FTX CEO laid out several examples that highlighted long waiting times and intermediaries that make the fees higher and infrequently add uncertainty to transactions.
According to the chief, blockchain solves this long-standing issue in finance by replacing the lengthy traditional process with a straightforward three-step process of the sender creating a wallet, the receiver creating a wallet so sending the balance through. Bankman-Fried argued that this eliminates the waiting time, replaces the fee structure and solves the uncertainty factor.
Apart from this, the FTX CEO also recognized that blockchain can change the complete stock trading process which has its fair proportion of flaws. Highlighting issues met with the infamous GameStop short-squeeze where retailers finish off due to settlement risks, Bankman-Fried said that tokenizing stocks is that the answer.
26) Say you tokenize stocks.
Instead of waiting 2 days to settle, you can just swap AAPL-token <> USD-token on a blockchain. Which, remember, takes about 10 seconds and costs about $0.0002 in fees.
No remaining settlement uncertainty or risk.
— SBF (@SBF_FTX) July 16, 2022
The executive argued that kind of like the solutions to payments, tokenized stock trading executed on a blockchain can complete the transactions during a matter of seconds, and reduce settlement uncertainty with much lower fee structures.
Lastly, the FTX CEO said that social media is isolated and not interoperable. the chief named how one user needs to bear many apps to manage various platform-specific applications.
Bankman-Fried argued that blockchain can potentially make social media more interoperable, allowing messaging across various platforms. Through the employment of public chains, the relaying of messages from one social platform to a different is feasible in step with the manager.
People are also interested: How to sign up for FTX is the simplest for beginners
