The collapse of FTX highlighted many issues in the cryptocurrency space. While those familiar with the landscape of Blockchain technology and its myriad applications are well aware of the differences between Web3 and “crypto”, many who only learned about the existence of Bitcoin during the craze in 2021 may not be as well equipped to distinguish these technological applications. This is what motivates us to lay out our strategic vision on the future of Blockchain and Web3 in this post.
Since FTX, the popular centralized cryptocurrency exchange, started to experience “liquidity problems”, new revelations continue to shock the public with their lack of compliance to legal and ethical standards. Rather than suggesting the failure of Blockchain and cryptocurrencies, this reconfirms our long-term observation: Decentralization provides the only viable future for private Blockchain projects. In particular, operators of a platform or framework should not hold or manage the private keys. This is not only a philosophical choice when we design FeverTokens’ architecture but also our compliance commitment. Embedded directly in our code is fool-proof prevention of FTX-type scams.
While in the immediate term much attention will be drawn to the deficiencies of the centralization combined with poor compliance and low ethical standards, we believe that this deep reflection will result in better understanding of the need for decentralization: The community and the general public will also be able to distinguish Web3, which ties utilities, privacy, IP rights, and much more to decentralized Blockchain networks, from cryptocurrencies.
Indeed, privacy concerns and censorship on Web2 platforms are similar to the collapse of FTX in scale and much larger in scope. Hence, we believe that this shock will accelerate the eventual adoption of Web3 over Web2.
Further, we should note that Web3, built on Blockchain technology, functions well with both fiat currencies and CBDCs. Indeed, we have just launched FeverTokens Wallet, a non-custodial internal wallet for users of our users to interact on Web3 using credit card and other payment methods. We will also explore options of integration with the main CBDCs that are coming online.
At the present time, we focus on building a solid, highly-scalable and secure-by-design architecture with rich, end-to-end features so that when the mass adoption cycle begins we will be fully prepared as the front-runner.