Vitalik Buterin says the problem lies in people, not technology, amid the FTX collapse

In a recent interview, Vitalik Buterin, the Co-Founder of Ethereum, has spoken out in the wake of the much-talked FTX collapse and has shared some light and some positive views from one of the most notable black swan events in the field of cryptocurrency. The interview was conducted on November 20, and Buterin addressed that the fall of FTX has brought lessons for the entire crypto ecosystem.

In addition to this, it should be noted that Buterin acknowledged that the stability of distributed ledger and technology powering the crypto asset economy has not come into any kind of question. The issue, in this instance, is with people and not technology.

Vitalik addressed the FTX collapse as a huge tragedy but reaffirmed the position of many in the ETH community on the grounds of centralization. In addition to this, the ethos involves trusting in open and transparent code above humans. 

As a suggestion, Butering said that we should no longer rely on traditional methods such as auditors, government licenses, background investigations of people, and corporate governance. Instead, exchanges could create cryptographic proofs that represent the funds they hold on-chain.

In relation to this, other industry players apart from Vitalik Buterin, such as Changpeng Zhao, the CEO of Binance, revealed that it is essential for industry players to lead by example even though regulation is necessary. 

Along with this, Zhao said that the complete FTX saga is highly likely to act as a setback for the entire crypto industry. He added that in a few years, there is a possibility that we will likely see regulators scrutinize the industry, even stricter, which, in accordance with Changpeng Zhao, is a good thing.