What’s Next For Blockchain Technology After FTX’s Collapse?

Crypto giant FTX’s bankruptcy filing, along with the dramatic fall in value of most cryptocurrencies in 2022, has raised new questions about the future of blockchain technology.

November 13, 2022 •

Dan Lohrman

Shutterstock/Artit Wongpradu

Financial markets were buzzing with stories surrounding the collapse of crypto giant FTX last week. Here are some of the best media coverage:

CNN Crypto giant files for bankruptcy as CEO steps down in eye-popping fall: “FTX Group said friday it filed for bankruptcy in the US and its CEO resigned, marking a staggering downfall for one of the biggest and most powerful players in the crypto industry.

“FTX said Sam Bankman-Fried, the 30-year-old founder of the exchange, will stay on to help with an orderly transition. The company has appointed a new CEO, John Ray III, and many employees are expected to remain to operate the business in Chapter 11.”

CNBC.com— Sam Bankman-Fried steps down as CEO of FTX as his crypto exchange files for bankruptcy“In the 23-page bankruptcy filing obtained by CNBC, FTX says it has more than 100,000 creditors, assets in the range of $10 billion to $50 billion, and liabilities in the range of $10 billion to $50 billion Bankman-Fried also said it wants to appoint Stephen Neal as the company’s new chairman.

BBC.com— FTX – Cryptocurrency Market Shaken by Near Exchange Collapse“The cryptocurrency world is full of great personalities and Sam Bankman-Fried is one of the greats.

“Since the “cryptocrash” in the spring, FTX’s outspoken young owner has been a beacon of hope for investors big and small.

“While other businesses faltered, Bankman-Fried seemed to thrive. …

“As revelations about his company’s fragile finances emerged in reports by CoinDeskthose candid interviews are now coming back to bite him.
“Retail and institutional investors have used FTX to buy and sell cryptocurrencies, as well as stocks, ETFs, futures, options, leveraged tokens, and non-fungible tokens (NFTs). Customers could use FTX FTT native cryptocurrency token to get a trading fee discount by paying for trades using the FTX token – the more FTT a user holds, the bigger the discount. But unlike FDIC-insured accounts, no such guarantees exist for crypto investors using a platform like FTX.

BEYOND CRYPTOCURRENCIES, BLOCKCHAIN ​​COMPANIES IMPACTED

So how will the events of the past week and the decline in value of bitcoin and other cryptocurrencies impact broader blockchain trends?

Moreover, innovation is led by many tech companies that are leading with blockchain technology. Consider these articles on blockchain innovations:

Entrepreneur.com —Will Blockchain Technology Make Logistics the Best Ever?: “Startups in some Asian countries like South Korea are also experimenting with blockchain technology to make the last-mile delivery process transparent and foolproof. They have created centralized delivery platforms and corresponding couriers for order delivery using AI and smart contract-based applications A number of multinational shippers are also testing the applicability of blockchain to maintain paperless transaction records in a distributed ledger, thereby reducing risks of commercial counterfeiting and payment disputes.

CFO.com — 5 Ways CFOs Can Maximize Blockchain Technology“As the next generation of the World Wide Web comes to fruition, new economic and technological infrastructures loom on the horizon. With this new generation, known as Web3, concepts such as decentralization, digital currencies, token-based economy, and non-fungible tokens (NFT) are making their way into the traditional economy. As new technology brings foreign terms and tools to even the most educated people, this new arena of commerce has created a level playing field for businesses of all sizes.

Forbes4 Ways Blockchain Technology Will Change Leadership“Blockchain technology provides a decentralized and secure way to store and manage data, enabling new levels of transparency and collaboration that transform strategies and operations. Using blockchain technology, organizations can create a shared, tamper-proof database to track transactions, assets, and interactions between parties. This provides a single source of truth that everyone can trust, eliminating the need for costly intermediaries and manual reconciliation. But leaders must take a strategic approach to ensure their organizations can take full advantage of this transformational technology.

CNBCSingapore wants to be a hub for blockchain in finance, but not for speculative crypto trading, says MAS: “Singapore has ambitions to become a global crypto hub, but has been crack down on industry after many retail investors lost their life savings to crypto trading. The city-state has many times warned that cryptocurrency trading is “highly risky and not suitable for the general public” due to its volatile and speculative nature. He even banned crypto advertising in public spaces and on social media in January 2021 and proposed new measures to protect retail investors recently after the $60 billion collapse of the Luna de Terra.

“Yet, Singapore has openly shown its approval for blockchain technology and embarked on various projects. payments and securities.

“Another is Project Guardian, which recently completed its first industry pilot which involved DBS Bank, JPMorgan and SBI Digital Assets Holdings trading in foreign currency and tokenized government bonds.

FINAL THOUGHTS

As I listened to blockchain and cryptocurrency experts last week, the consensus is that blockchain technology is not going away and will grow in the years to come. The failure of FTX and the fall in value of cryptocurrencies will lead to more regulations and changes that will benefit the financial industry as a whole.

And there are many government applications for blockchain technologies, with major breakthroughs expected over the next decade.

Nonetheless, the events surrounding cryptocurrencies and the bankruptcy of FTX will undoubtedly lead to soul-searching and new approaches that will hopefully bring lessons learned and inform government regulations that will undoubtedly be to come.

blockchain

Dan Lohrmann

Daniel J. Lohrmann is an internationally acclaimed cybersecurity leader, technologist, keynote speaker, and author.

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*** This is a syndicated blog from the Security Bloggers Network of Lohrmann on cybersecurity Written by Lohrmann on cybersecurity. Read the original post at: https://www.govtech.com/blogs/lohrmann-on-cybersecurity/where-next-for-blockchain-technology-after-ftx-collapse



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