The fall of the Futures Exchange (FTX), the company Sam Bankman-Fried founded and served as CEO, is just one episode in the continuing collapse of crypto. But will it take down the blockchain, the protocol on which cryptocurrencies rely, too? Or is there still life for it after crypto? In Europe, many believe there is.
Despite the collapse of crypto, many in the industry still believe in blockchain’s potential as a revolutionary technology. They point to its security and transparency features, which make it an attractive alternative to traditional financial systems. And even after the crash of cryptocurrency prices, there are those who remain hopeful that one day this technology can revolutionize global finance.
A blockchain looks like a distributed database whose information is stored across all levels of a network. Because the database is distributed among the network participants, it guarantees data stored within it is accurate and secure.
Blockchains store data into blocks that are added over time to the network. Each new block builds on the information in previous blocks, forming a data timeline that can be securely trusted.
It remains to be seen whether Bankman-Fried can rebuild his reputation and that of FTX, or if the collapse will have lasting effects on the industry. But for now, blockchain technology continues to evolve with new applications being developed every day. As more people become interested in cryptocurrency, it is likely that blockchain’s potential will continue to shine through. Only time will tell if Sam Bankman-Fried can make a comeback and reestablish his place in the industry. But regardless of the outcome, blockchain technology is here to stay.
Motoblockchain is a small startup based in Malaga, Spain that developed a system to store information regarding motorcycles, such as parts, usage, and repairs, on the blockchain. Through this system, mechanics and riders interested in purchasing second-hand bikes can verify the origin and history of a certain motorcycle with ease. João Fernandes, an analyst with the Portuguese investment fund Bright Pixel Capital, highlighted blockchain technology’s trustworthiness in such ecosystems. This trust is one of many advantages blockchain can offer to the European economy.
“There is no doubt that we are seeing massive and widespread adoption of blockchain technologies and the number of companies doing it will grow by the day. Blockchain is becoming a necessity, just as websites and business accounts in social networks once became such.” – Johnny Lyu, CEO of cryptocurrency exchange KuCoin
Start-ups like Motoblockchain remain hopeful about the future of blockchain, despite its wild boom and bust cycles. In order for blockchain technology to be successful in the long term, it is important to stimulate the growth of these start-ups and convince European companies to use blockchain. By doing so, it can help transform Europe into an advanced hub for innovative technologies.
Crypto winter to define the blockchain winners
Meanwhile, the blockchain space has become increasingly crowded over the past few years, as more and more start-ups strive to develop innovative applications of the technology. However, with the current crypto winter causing upheaval in the technology market, this could be an opportunity for the strongest players to emerge and eventually become the winners.
This is a sentiment shared by both Robert Richter and Bernardo Fernandes, two experts in the blockchain space. Through initiatives such as BlockStart and Blockpool, these two are trying to encourage start-ups to develop useful blockchain applications that regular people can adopt in their daily lives.
What’s more, they also aim to educate existing companies about the potential of blockchain technology. This could eventually help make the technology more accessible, allowing more regular people and businesses to take advantage of its many benefits. So while the crypto winter might be a difficult time for many in the blockchain space, it could also prove to be a blessing in disguise if it helps foster the growth of strong projects with real potential.
As a result, It is likely that blockchain will be playing a much more prominent role in the European economy in the future, and companies are already beginning to recognize its potential to streamline processes and reduce costs. With the right level of encouragement, Europe could well become an international leader in blockchain technology.