According to Sam Bankman-Fried or SBF, the founder and CEO of crypto derivatives exchange FTX, the crypto industry still has a long way to go before it changes the world. Improved scalability is one of them.
The FTX CEO noted in a lengthy thread on Twitter that Solana now holds the record for the quickest transaction per second throughput at roughly 50,000 TPS. Even Nevertheless, if the crypto sector is to be accepted on a worldwide basis, networks capable of handling millions of transactions per second are required.
“Well, blockchains are starting to scale, but it’s not enough yet. We’re at ~50k TPS; industrial-scale applications often require millions.” He noted, “I always laugh when a blockchain says they’re already fast. None are! Fast means millions of TPS. No one is there yet.”
The most explosive year for the crypto sector has been 2021, according to SBF. He cited a large user base, additional blockchains with smart contract capabilities, more possible use cases, the introduction of scaling solutions, and the industry’s tremendous attention as the industry’s greatest successes. However, if scalability isn’t taken into account, all of this will be for nothing.
According to SBF, the crypto industry has demonstrated that those with significant network effects — those backed by a big number of buyers and sellers – are the winners. This is why the industry must strive towards scalability, as it will enable crypto to not only make payments and remittances possible on the blockchain, but also new use cases such as social media, information flow, and video games to be combined with NFTs.
While reaching scalability is one side of the coin for the future of crypto, according to SBF, it is not the industry’s sole pressing necessity. In addition, the young millionaire believes that the crypto business need substantial oversight. He stated that the sector must work together to fix present regulatory gaps while enabling liquidity to flow to the United States and Europe.
He also emphasizes that the industry must concentrate on security as well as enhance user experience in order to remain relevant.