FTX CEO – Sam Bankman-Fried (SBF) – posted a lengthy Twitter thread to describe some of the obstacles facing the cryptocurrency industry and how to potentially deal with them in the following years.
Before diving into some of the challenges, SBF outlined what the industry has already achieved. Namely, these include a solid userbase, smart contracts, numerous potential use cases, the beginning of scaling solutions, as well as “an enormous amount of attention.”
Yet there are also a lot of hurdles to overcome.
The Elephant in the Room
SBF believes that the most obvious thing that’s still “missing” from the crypto market is regulation.
There has been a lot of tension between the industry and the regulators, and both sides have often felt frustrated.
One of the things that make it hard for the industry to move forward while also limiting institutional involvement is the lack of a clear process for token issuance, regulation on platform registration, and stablecoins in many jurisdictions.
Additionally, “many regulators have found it very difficult to work with crypto companies: instead of working collaboratively, we’ve seen a ton of examples of tension boiling over.”
So, how to remedy the above? Well, Bankman-Fried believes that it’s important to “work collaboratively on ways to address current regulatory gaps,” but also allowing liquidity to move to the US and to Europe, as well as other jurisdictions. He also addressed the issues associated with stablecoin regulations.
Stablecoins are perhaps the simplest: create a framework based on reporting / transparency / auditing to make sure they’re backed as they say they are.
This would solve 80% of the problems while still allowing Stables to thrive on land.
SBF also said that there should be standardized markets oversight in a unified regime “that creates similar standards for spot, futures,” and so forth.
Scales of the future
One of the things blockchain-based networks have struggled with is scaling. There are examples across the board – Ethereum’s sky-high fees, Solana’s blackouts, avalanche issues under high load, etc.
So, what matters the most is having a concrete roadmap to scale to millions of TPS, and executing well on it. – SBF said.
He doesn’t think a network still exists, nor does he think a network is “fast”. Speaking of use cases, he seems to believe that gaming is a very prosperous potential avenue, admitting that “tapping into the existing video game user base could be huge – billions of users and hundreds of billions of users. dollars each year ”.
Yet, the UX and UI of existing gaming projects don’t seem to be anywhere near to what’s required for a seamless complementary experience.
To conclude, SBF declared that:
If you want to increase confidence in the industry, regulation is important. But the same goes for UI / UX, and every night scam. Whenever we can do something great, beautiful, and useful as an industry, we move everyone forward. Every time we have a blast, we all take a step back.
