FTX founder SBF looks forward to the blueprint of the 2022 encryption industry: regulation, expansion and GameFi

SBF (Sam Bankman-Fried), the founder of the cryptocurrency exchange FTX, talked about the development roadmap of cryptocurrency through several tweets on Twitter today (28). In addition to mentioning the current stage and advantages of the cryptocurrency field, SBF also mentioned areas to be improved in its tweet, and gave opinions and suggestions.

SBF tweeted at 4:39 in the morning Beijing time that it had written a lot of articles about the blueprint for the future development of FTX, but did not focus much on the overall aspect of the cryptocurrency industry: then I will start talking. The following is not investment advice, it is only a personal opinion, maybe I am wrong.

At this stage

When it comes to the cryptocurrency industry and field, SBF said in a tweet: Let’s take a look at the current stage and advantages of the cryptocurrency field, as well as the direction it wants to achieve in the future.

SBF stated that the current advantages in the cryptocurrency field are:

1. Robust number of users: There are approximately 200 million cryptocurrency users worldwide

2. Smart contracts: In this field, smart contracts are too important. He led the path of cryptocurrency from digital gold to Web3/Meta universe/DeFi.

3. Potential application cases: functions include remittance, payment, value storage, NFT applications in Metaverse, transmission of messages, social media, tokenized assets, decentralized finance, etc.

4. Multiple ongoing expansion solutions, including: L1, L2, Lightning Network, rollup, etc.; throughput has been expanded to 50,000tx/s.

5. Huge market attention: The market value of cryptocurrency is currently about 2.5 trillion U.S. dollars. Although the market value is lower than that of Apple and Microsoft, the recent volume and popularity are obviously greater than the latter.

What is still lacking in the cryptocurrency field?

In addition to the stage advantages in this field, SBF still lacks some key factors.

SBF said that it starts with the most obvious problem, and that is regulation. There is quite a tense relationship between the cryptocurrency industry and regulators, and in most cases, both feel frustrated.

On the one hand, because the process of issuing tokens, platform registration or stable currency issuance in jurisdictions is not clear, the industry cannot move forward smoothly, and it is also difficult for institutional participants to participate. On the other hand, many regulators and companies in the encryption field have difficulties in cooperating. The two sides are no longer a cooperative relationship, but a tense situation has arisen.

The second thing SBF mentioned blockchain expansion. Although the expanded track is under development, according to the current progress, it still fails to meet market demand. The current transaction throughput per second (TPS) is around 50,000, but at an industrial scale, it usually takes millions to meet application requirements. In addition, although digital assets have a lot of prospects in terms of payment, in fact, only a few are in the completion stage.

Future prospects and solutions in the encryption field

So how to achieve the ideal goal from the current stage, SBF has proposed corresponding solutions for supervision and TPS.

"So, how do we get from here to our goal? When we are about to end the most explosive year in the history of encryption and look forward to 2022, what should the industry pay attention to and what preparations should it make?"

SBF said in a tweet that for regulation, the most important thing is to cooperate to resolve the gap between regulation and industry and allow capital liquidity to expand to the country-the United States, Europe and other jurisdictions.

SBF went on to mention that the most direct way is to use stablecoins to create a formal framework for audit reports to ensure transparency and the fiat currency reserve support claimed by the stablecoin issuance department does not exist. This can solve 80% of the problems. , And at the same time allow stablecoins to develop safely in the country. However, SBF also pointed out that it is more important to ensure that the open network can continue to grow while implementing it; if the network is limited to existing banks, most purposes will fall short.

Next, we need to establish a standard for monitoring the market, regulate it with a unified system, and establish similar standards for spot and futures in the field.

The third is to create a token issuance system for information disclosure, registration and anti-fraud. The goal of formulating the above rules is to hope that the industry can become stronger, allowing consumers and institutions to interact freely in the digital asset ecosystem, while providing consumer protection and regulatory clarity.

end

SBF is optimistic about achieving its goals in the next few years, but he still mentioned that one of the major obstacles to application is still the network effect: the smooth operation of cryptocurrency payments requires the support of both buyers and sellers. This also means that it needs to be achieved in a gradual manner. Through continuous network construction until the transitional stage is reached, it can support enough merchants and consumers to use it. The same is true for social media and streaming media based on blockchain operations.

In terms of use cases, SBF believes that game users (with billions of users and hundreds of billions of dollars in business opportunities each year) will be a huge opportunity. The real goal is to make great games and improve the gaming experience through integration with NFT. At the same time, the network needs to be continuously expanded.

"Whenever a blockchain claims to be fast, I always feel funny, none of them are fast enough! Really fast refers to more than one million TPS. No one is at this stage yet."

So the most important thing is to have a concrete blueprint for expansion to one million TPS, and to ensure that it can be implemented well.

"So there are a lot of things that need to be done specifically in the crypto ecosystem next year. But in one sentence, everything is crucial."