Blockchain can make social media interoperable, he says
While critics cast doubt on some of blockchain’s use cases during the crypto winter, one of the most prominent figures in society put forward some points that solidify blockchain’s position as a disruptive technology.
On Twitter, Sam Bankman-Fried, CEO of FTX Crypto Exchange, highlighted use cases for blockchain and explained how some industries can benefit from integrating technology. According to Bankman-Fried, blockchain technology can simplify payments, solve stock market failures and revolutionize social media.
Bankman-Fried said there are many issues surrounding cross-border payments. The FTX manager presented several examples that highlighted long waits and intermediaries that make fees higher and often provide uncertainty for transactions.
According to the leader, blockchain solves this long-standing financial problem by replacing the long-standing traditional process with a simple three-step process where the sender makes a wallet, the recipient makes a wallet and then sends 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 manager also pointed out that blockchain can change the whole stock trading process which has its fair share of flaws. Bankman-Fried said stock tokenization is the answer to highlighting problems faced by the infamous GameStop card press where retailers close due to settlement risk.
26) Say that you tokenize shares.
Instead of waiting 2 days to settle, you can just swap the AAPL token <> USD token on a blockchain. Which, remember, takes about 10 seconds and costs around $ 0.0002 in fees.
No remaining settlement uncertainty or risk.
– SBF (@SBF_FTX) July 16, 2022
The manager claimed that similar to the solutions for payments, tokenized stock trading performed on a blockchain can complete the transactions in seconds, and reduce settlement uncertainty with much lower fee structures.
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Finally, the FTX CEO said that social media is isolated and not interoperable. The manager discussed how a single user must go through many apps to manage different platform-specific applications.
Bankman-Fried argued that blockchain could potentially make social media more interoperable, and allow messaging across different platforms. Through the use of public chains, it is possible to forward messages from one social platform to another according to the management.
