{"id":55900,"date":"2022-11-21T11:18:01","date_gmt":"2022-11-21T10:18:01","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=55900"},"modified":"2022-11-21T11:18:01","modified_gmt":"2022-11-21T10:18:01","slug":"vitalik-buterin-calls-for-experiential-learning-after-ftxs-huge-tragedy","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/vitalik-buterin-calls-for-experiential-learning-after-ftxs-huge-tragedy\/","title":{"rendered":"Vitalik Buterin Calls for ‘Experiential Learning’ after FTX’s ‘Huge Tragedy’"},"content":{"rendered":"

Ethereum co-founder Vitalik Buterin <\/strong>has weighed in on the FTX collapse suggesting it contains lesson for the entire crypto community acknowledging the heavy impact of the meltdown. <\/p>\n

The FTX saga has battered the entire crypto ecosystem dragging major digital assets such as Bitcoin (BTC)<\/strong><\/a> and Ethereum (ETH)<\/strong><\/a> to unexpected lows. The meltdown of one of the biggest crypto exchanges triggered a frenzy among investors and customers.<\/strong><\/p>\n

High-profile companies, including BlockFi<\/strong> and Genesis,<\/strong> are stuck in a\u00a0severe finacial predicament<\/strong> with VC giants such as Sequoia Capital<\/strong> and Softbank<\/strong> marking down their entire investment at FTX to zero.<\/p>\n

Blockchain Technology is Here to Stay<\/h2>\n

\"Vitalik<\/p>\n

Amid all the hullaballoo, Vitalik Buterin said there are many lessons to be learnt after the FTX collapse suggesting “c<\/strong>rypto is a long way from reaching its full potential.”<\/strong>\u00a0<\/span>According to a report<\/a>, Buterin emphasized the stability of crypto\u2019s so-called underlying technology, the blockchain<\/strong> while identifying the FTX meltdown as “a huge tragedy”. <\/strong><\/p>\n

He argued that the problem lies in people who fail to execute their job, not technology. The Ethereum co-founder further claimed that blockchain base layers and decentralized-finance protocols worked \u201c<\/strong>flawlessly“<\/strong>, despite the turmoil. Buterin explained,<\/p>\n

“What happened at FTX was of course a huge tragedy.\u00a0That said, many in the Ethereum community also see the situation as a validation of things they believed in all along: centralized anything is by default suspect.”<\/em><\/p>\n

Over the weekend, Buterin has published a guide<\/a> to having a \u201csafe CEX\u201d<\/strong> with “proof of insolvency”<\/strong>. He wrote rather than relying solely on “fiat” methods like government licenses, and auditors, crypto exchanges could create cryptographic “proofs” that show that the funds they hold on-chain are enough<\/strong> to cover their liabilities to their users. Buterin said,<\/p>\n

“In the longer-term future, my hope is that we move closer and closer to all exchanges being non-custodial, at least on the crypto side.”<\/em><\/p>\n

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Having a safe CEX: proof of solvency and beyondhttps:\/\/t.co\/AKEweYZfj2<\/a><\/p>\n

Big thanks to @balajis<\/a> and staff from @coinbase<\/a> @binance<\/a> @krakenfx<\/a> for discussion!<\/p>\n

— vitalik.eth (@VitalikButerin) November 19, 2022<\/a><\/p><\/blockquote>\n