In the wake of FTX’s implosion, Vitalik Buterin, the co-founder of Ethereum has shared lessons the crypto industry needs to learn from the meltdown while highlighting its heavy impact on the industry.
The problem is Not the Technology
Vitalik Buterin, weighing in on the FTX collapse, said that the problem lies in people, not technology. Buterin acknowledged the stability of crypto’s so-called technology, the blockchain, through the collapse.
Buterin, who has spoken against dismissing everything FTX’s CEO Sam Bankman-Fried did despite ‘fraud,’ adds that the blockchain-based layers and decentralized finance (DeFi) protocols worked “flawlessly.”
Although Buterin labeled the FTX collapse as a “huge tragedy,” the Ethereum co-founder notes that the disaster contains lessons for all of crypto.
The Collapse Increases Claims for Decentralization
According to Buterin, the collapse of FTX validates the claims of many in the Ethereum community that “centralized anything is by default suspect,” with many calling for decentralization.
Buterin adds that the FTX saga has led to many in the crypto community putting their trust in “open and transparent code above individual humans.”
On the Flipside
- Although stating that FTX’s collapse was due to fraud, Buterin has defended SBF saying that “automatically downgrading every single thing SBF believed in is an error.”
Why You Should Care
Over the weekend, Buterin also posted a guide to having a “safe CEX” with proof of insolvency. Binance is already working with the guidelines.
With self-custody rising, here are the best wallets available for you: