In an interview with Bloomberg on Tuesday, FTX CEO Sam Bankman-Fried (@SBF_FTX) stated that blockchain can be used to repair social media’s “broken model.” SBF did not mention which one of the platforms he is referring to in his comment.
“We saw a social media choose not to censor misinformation in 2016, and get absolutely roasted for that decision,” he added. “And then we saw them choose to censor in 2020, and get roasted for that decision.”
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According to SBF, one of the primary issues with social media platforms is that they all are self-contained. For example, he refers to Facebook and WhatsApp as examples of Meta entities. “They are distinct interfaces coexisting in the same universe.”
“On Facebook, there is no way to view a tweet”, he explained. “If you message someone on Facebook, even WhatsApp, which is owned by the same business, cannot read it. As a result, it’s a very disorganized system with no interchange between different platforms.”
An effective method of communication on social media platforms to address the issue of compatibility, suggesting that many interfaces might draw from the same data, said the founder of the cryptocurrency exchange
The 30-years old billionaire’s solution: “You directly store the underlying communications on the blockchain. This means that every platform might theoretically access the same collection of messages. Thus, whether you’re on Facebook, Twitter, or whatever platform you’re on, they’re all drawing on the same set of messages”.
Sam Bankman-Fried believes Blockchain technology would boost competition in the social media business. “Because it enables newcomers to enter the field without falling behind in terms of user base growth.”
When asked whether he has discussed about it with Musk, Bankman-Fried replied: “I have not, but I would be delighted to.”
Bankman-Fried’s FTX, is one of the world’s fastest-growing cryptocurrency exchanges, processing nearly $11 billion in trades a day.
He grew up in the Bay Area, and both of his parents are Stanford Law School professors. His father, Joseph (Joe) Bankman, is a tax law expert, while his mother, Barbara Fried, studied law, economics, and philosophy.
Bankman-Fried is ranked #60 on Forbes Billionaires List for 2022, with a net worth of $24 billion. He stated that his objective is to give away all of his money during his lifetime.
The Tesla CEO, who has been critical of Twitter for failing to “adhere to fundamental principles of free speech.” Refering to the company decision to permanently ban former President Donald Trump. Musk has stated that if he is able to acquire the site, he intends to make big changes. He offered $43 billion for the social network he loves most.
Twitter board has replied with a “poison pill” defense aim to ward off hostile takeovers by either diluting the acquirer’s ownership through market creation or by allowing existing shareholders to purchase additional shares at a discount.
