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SBF
@SBF_FTX
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@SBF_FTX
30) The largest networks have pseudo-monopolies, with gigantic network effects that prevent new competitors. And how does censorship work? Well, basically, the leaders of the top few social networks have to make unilateral decisions.
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SBF
@SBF_FTX
31) Let’s say that, instead, we put messages on a blockchain. So if you used Blockchain-Twitter (BT): --You type the message in BT’s interface --BT posts the message on a public blockchain --Your friend pulls out Blockchain-Facebook (BF) --BF reads your message and displays it
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SBF
@SBF_FTX
32) By using an underlying public chain for messages, we’ve made different networks compatible. You can use any platform, and still talk to all your friends on every platform. Your messages, and network, are yours: you can move platforms and keep them.
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SBF
@SBF_FTX
33) New platforms can read/write from the chain, inheriting the network effects, allowing real competition. And each platform can make moderation decisions, so at least there’s diversity of opinions.
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SBF
@SBF_FTX
34) I could see blockchain having a large impact on payments, remittances, market structure, and social media. And this list isn’t exhaustive; there are tons of areas blockchain can innovate in. I haven’t really touched at all on DeFi, or web3 gaming.
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SBF
@SBF_FTX
35) But taking a step back: how many of these areas has crypto revolutionized so far? I think the answer is “not really any of them”. It’s starting to impact some, but not in a widespread way yet. So what could get us there from here?
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SBF
@SBF_FTX
36) (i) Technology. Right now the fastest chains can handle 5-50k TPS. We probably need to scale that up to ~1m TPS, whether it’s through L1s, L2s, lightning, rollups, etc. I’m guessing we’ll get there in ~3-7 years.
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SBF
@SBF_FTX
37) (ii) Regulation. There needs to be regulatory clarity in order to get mass adoption, and the major platforms have to become licensed. I’m really impressed by the progress the US has made in the last year!
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SBF
@SBF_FTX
38) (iii) Great products. Builders have to focus on building great products, not on monetization as the core product.
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SBF
@SBF_FTX
39) (iv) Network effects. Many of these use cases don’t work unless two people both use crypto: buyer/seller; sender/receiver; tweeter/reader. That means we have to get up to ~30% adoption by person for (30%^2 =10%) adoption by transaction.
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