The implosion FTX It has resulted in billions of dollar losses for investors and consumers, but it also has important implications long term: Loss trust in the public. the crypto industry. As a result, entrepreneurs and others have created the crypto industry. must Find out how and why this happened, and what you can to do about it. from This will be repeated. We must We will continue to push for accountability and take action against unscrupulous or reckless actors. the Web3 has no boundaries Web3 has five boundaries. I have been in this business since 2015. must If blockchain technology is to realize its full potential, it will happen.

FirstWe need a legal framework to protect users while still promoting innovation. It is not enough to regulate by enforcement. must end. To find something similar, policymakers and industry leaders could work together. the 1996 Telecommunication Act was created the Conditions for innovation to flourish responsibly Any new rules must distinguish between the Technology and the Companies that add services to it. Take cues from the Internet—we don’t regulate network time or hypertext transfer protocols (aka the web). We still try to regulate websites like PayPal and Internet service providers like Comcast as well as corporate entities such Amazon that use these protocols. In the Case of natural disasters like FTXPolicy makers must understand the It is not about decentralization. It is about too much centralization by crypto corporate intermediaries who conceal their financial and decision-making. from the public. 

Second, let’s keep in mind what makes blockchain technology disruptive and focus our efforts on building products and solutions that play to its strengths: that it enables anyone, anywhere to move, store and manage their wealth and assets peer to peer. Let’s support the Entrepreneurs working towards a better Web, and a more inclusive financial market for everyone. Blockchains are the first digital medium for value, in the Same way. the Internet was the first digital medium for information. The digital economy requires a digital native asset class to allow payments, savings, or other financial tools. This space needs a new wave of entrepreneurs who focus on developing simple Web3 applications that appeal broadly to a broad range of people. the Instead of using obscure trading apps or esoteric investment instruments, you can increase the population and solve real-world issues. Make products that ordinary people need and understand.

Third, let’s end the There is a lot of hero worship for crypto founders who manage centralized companies. Reality is that middleware can be a problem. FTX Do not let your own dominance take over the industry. Web3’s appeal lies in its permissionless, decentralized nature. Anyone can access digital assets from anywhere, manage them peer by peer, and participate in their governance. Bitcoin was the This was the first time it was possible. Ethereum and DeFi apps have helped turbocharge it. It deserves credit. FTX It offered a fantastic user interface and experience. However, it required more transparency, better risk management, and stronger governance. Companies such as FTX These on-ramps may still be important for this asset class. the Web3 offers a larger world. However, the Access ramps to an industry must not define the industry. Binance currently accounts for half the cryptoasset volume. While we may praise Binance for its survival, it should be feared that such concentration can lead to serious health problems. 

Fourth, Enterprises who wish to develop Web3 with public blockchains need our support. Many large companies have spent many years working with closed systems such as permissioned blockchains, and are now ready to build in Web3. the Jump to Ethereum and other public infrastructure. Although these platforms didn’t deliver any value, they were able to make companies happy. the technology. Now, let’s build more onramps for them to use this public infrastructure for real-world commercial applications. NFTs can be a great start. “red-pill” Web3 and Open Access: A Big Firm the Doors to more innovations Builders and Web3 users will both benefit from more corporate innovation in this area, but so will investors – after all, if hundreds of companies are using this technology they’ll likely need to own the To operate a node or pay for gas fees, an underlying asset is required.

FinallyWe must Recognize that self-custody may be a great feature for some users, but it can also pose a major obstacle to Web3 adoption by others. Trusted service providers are still needed in this space. Web3’s technology tools are not intuitive for everyone. Many users fear losing their assets. Roneil Rumburg (founder of Web3 music platform Audius), recently shared his thoughts with me the FTX This should be addressed “lead to more time/resources spent towards improving the usability of fully self-sovereign, decentralized tooling for managing digital assets,” He admits to that, though “it’s possible to be a self-sovereign crypto user today, the usability bar for doing so is still so high that it’s out of reach for many mainstream users.” Web3 innovators are creating more accessible tools. However, individuals and businesses will still require trusted partners and agents. Let’s support good actors through industry standards like proof-of-reserve requirements, sensible regulations, and social consensus and collaboration—in other words, call out bad actors when they appear and support those who speak truth to power. 

Web3 was meant to be a portal for information. “too-big to fail” intermediaries irrelevant. With FTX, we got exactly what Bitcoin’s creator Satoshi Nakamoto sought to route around: a centralized organization that used its clout to take excessive risks in a loosely regulated market. In the end, retail paid the The most severe toll. We have to get out from This crisis has prompted a renewed commitment to not only building secure, simple, and decentralized tools using open protocols, but also to regulating centrally-controlled financial intermediaries regardless of their technology.

Alex Tapscott has been a the Co-author the The Blockchain Revolution is a best-selling book. He is also co-founder of The Blockchain Research Institute, and managing director of The Ninepoint Digital Asset Group.

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