The CEO of cryptocurrency exchange FTX called blockchain a “breakthrough technology” as it could simplify payments, eliminate stock market flaws and revolutionize social media.
Sam Bankman-Fried tweeted how some industries could benefit from blockchain integration. The businessman gave the example of international payments, which take a long time to complete. The process is delayed due to the involvement of intermediaries who charge their own commission, which makes payments abroad more costly. According to Bankman-Fried, blockchain can solve this problem in three steps: the sender of the payment creates a cryptocurrency address, the recipient performs the same action, and then the funds are sent. Thanks to the blockchain, the transfer will be transparent and almost instantaneous.
The FTX CEO noted that the blockchain can change the entire process of trading securities, which also has many disadvantages. He recalled the sad story with the shares of the GameStop network, which happened last year. Reddit forum users began to buy up these shares, and as a result of the increase in value, institutional investors who opened short positions suffered serious losses. Bankman-Fried believes that equity tokenization would eliminate these settlement risks:
“Let’s say you tokenize stocks. Instead of waiting two days for settlement, you can exchange any token for a stablecoin pegged to the US dollar using the blockchain. It will take about 10 seconds and the commission will cost $0.0002.”
The businessman assured that the blockchain can make different social networks compatible with each other, allowing users of one platform to send messages to users of another platform. Now this is not possible, since social networks are isolated from each other, and people have to install separate applications for each specific platform.
Bankman-Fried previously called Solana the best blockchain despite increasing network outages, as it can process a large number of transactions with low fees.
Source: Bits
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