- Tether CEO argues future crypto adoption requires real-world use cases without tokens or blockchains, focusing instead on core principles of peer-to-peer transactions and privacy through cryptography.
- Introducing unnecessary tokens and blockchains creates centralization risks, slows systems down through consensus mechanisms, and draws regulatory scrutiny, according to the CEO.
- He believes the next “crypto killer app” should tap into fundamentals like cryptography-enabled decentralized apps for booking, ride sharing, etc. without tokens or blockchains.
Tether CEO Paolo Ardoino believes that for crypto to reach mass adoption in 2024, the industry needs to focus on providing real-world use cases that don’t necessarily involve tokens or blockchains.
The Fundamentals of Crypto are Peer-to-Peer Transactions and Privacy
According to Ardoino, the core value proposition of crypto stems from peer-to-peer transactions and privacy protections enabled by cryptography. He argues that the next “crypto killer app” should tap into these fundamental principles rather than introducing unnecessary tokens or blockchains.
Tokens Create Central Points of Failure
Introducing a token result in centralization risks, claims Ardoino. It increases the likelihood that regulators will view the project as a security. Many token-issuing projects are now dealing with SEC scrutiny because of this concern.
Blockchains Are Slow and Require Global Consensus
Ardoino also takes issue with blockchain technology, which he finds slow and reliant on global state sharing. He points out that BitTorrent achieved decentralization without using a blockchain.
Real-World Use Cases Are Key
In summary, Ardoino believes crypto projects in 2024 need to provide real utility like booking systems or ride sharing without tokens or blockchains. The fundamentals of cryptography can enable decentralized apps with real-world use cases and adoption.
Conclusion
The Tether CEO makes a thought-provoking argument that crypto’s path forward may not involve some of the industry’s most hyped technologies. Rather than chasing tokens and blockchains, he advocates focusing on cryptography’s essence – peer-to-peer transactions and privacy.
