The blockchain doesn’t need DeFi and it certainly doesn’t need FTX

The second largest Cryptocurrency exchange failed. Sam-Bankman will be jailed. And Gary Gensler will be hailed. But the blockchain and its future impact on the world won’t change one bit.

Why? This story has everything to do with orgies, ponzis, and fraud, and nothing to do with the fundamental usefulness of the blockchain.

DeFi, an industry built on top of the blockchain will be rocked hard. But interoperable and distributed ledger technology hasn’t been threatened one bit.

So while it’s important to take note of what happened with FTX, and learn many valuable lessons ranging from don’t trust private off-shore financial institutions to adderall is one hell of a drug, it’s also important not to cash out on the thing that brought us all here in the first place.

I’m reading tweet after tweet and article after article about how this will set mass adoption back years. But that’s completely wrong. Mass adoption of cryptocurrency? For sure. Mass adoption of decentralized protocols that provide access to digital ownership and interoperable human experiences throughout the metaverse? Not at all.

In all honestly, mass adoption to the crypto industry is really just another way of them fantasizing about the day their crypto holdings mint them into a new class of billionaires. But for ordinary people it will be a series of invisible innovations that make their life better on a day to day level. And for businesses it will look like efficiency in scaling, partnerships, community building, and more. Not to mention the new industries yet to grow out of this technology that we don’t even know about yet. DeFi might be a big part of it all, but it certainly doesn’t have to be.

The point is blockchain technology will revolutionize our world with or without Bitcoin, Ethereum, FTX, and even all of DeFi.

In fact, if all of this wasn’t happening on the blockchain where everyone can see it unfold, a lot less information would be publicly available and the entire situation might have been as much of a black box as 2008, leaving those responsible unaccounted for.

So really, blockchain wins here even while ‘crypto’ loses.

The downfall of FTX is a horrible event and I feel for the 5 million customers who lost their funds. But the purpose of this article is to let the other 8 billion people on Earth know that the blockchain is not to be conflated with ‘crypto’. And that decentralization has a lot more to offer the world than leveraged trading on CEX’s.

Ponzi schemes came before SBF and they will come after. Just like we didn’t abandon the technology underlying Bernie Madoff’s bank account, we also don’t want to abandon the blockchain and it’s potential value to the world. But we can certainly abandon the thought leadership of those who are calling this a setback to ‘mass adoption’ because what they’re really talking about is ‘mass pumping of their bags’.

Blockchain stands alone and it’s here to stay.