Tether CEO Calls for Real-World Use Cases in Crypto Industry
Paolo Ardoino emphasizes the need for practical applications in the crypto industry that go beyond tokens and blockchains.
In a recent interview with Cointelegraph, Tether CEO Paolo Ardoino shared his vision for the future of the crypto industry. Ardoino believes that in 2024, the industry needs to focus on providing users with “real-world use cases and applications” that are not solely based on tokens or blockchains. He argues that the next crypto killer app should prioritize the fundamental value proposition of cryptography, which includes peer-to-peer transactions and privacy protections. Ardoino suggests that this could take the form of a booking system or an Uber competitor. By shifting the focus away from tokens and blockchains, Ardoino believes that the industry can avoid creating centralized points of failure and potential regulatory scrutiny.
The Limitations of Tokens and Blockchains
Ardoino highlights the limitations of tokens and blockchains in the crypto industry. He argues that introducing a token often leads to the creation of a centralized point of failure and increases the likelihood of regulatory scrutiny. Many projects that have issued tokens are currently facing regulatory challenges, particularly from the U.S. Securities and Exchange Commission (SEC). By moving away from tokens, Ardoino believes that projects can avoid these issues and focus on providing value to users.
Furthermore, Ardoino questions the necessity of blockchain technology for every application in the crypto industry. He argues that blockchain technology is slow and requires a global shared state, which may not be necessary for all use cases. He cites BitTorrent as an example of a decentralized system that did not rely on blockchain technology.
The Focus on Real-World Use Cases
Ardoino’s vision for the future of the crypto industry revolves around providing practical solutions that have real-world applications. He believes that the industry should prioritize the fundamental value proposition of cryptography, such as peer-to-peer transactions and privacy protections. By focusing on these aspects, the industry can create innovative solutions that can compete with existing services like booking systems or ride-sharing platforms.
By shifting the focus away from tokens and blockchains, Ardoino argues that projects can avoid unnecessary regulatory scrutiny and potential legal complications. Instead, the industry should leverage the benefits of cryptography to create decentralized systems that provide value to users.
Conclusion:
Paolo Ardoino, the CEO of Tether, emphasizes the need for the crypto industry to move beyond tokens and blockchains and focus on real-world use cases and applications. He believes that the next crypto killer app should prioritize the fundamental value proposition of cryptography, such as peer-to-peer transactions and privacy protections. By doing so, the industry can create innovative solutions that provide value to users while avoiding unnecessary regulatory scrutiny. Ardoino’s vision for the future of the industry challenges the conventional understanding of crypto and opens up new possibilities for decentralized systems.