The Upside Case for DeFi - Sam Bankman Fried

well thanks for joining us sam um the intro i was spinning up previously was had something to do something along the lines of it's it's cool to get uh people with a traditional legacy finance uh background involved in the crypto space that people are always thinking you know what what would happen when when that type of thinking got applied to crypto and now we're seeing that in a lot of different applications i think ftx is a prime example so uh yeah we're excited to hear about what what you're up to and your thoughts yeah thanks um and i don't know really sorry that i i'm running late today um no worries if we could uh keep it to around five minutes okay thank you sam totally so um yeah i mean thank thanks everyone for having me and you know i'm sampling freedom the the ceo of ftx and i'm only research and i have also been spearheading project serum and um you know there there's as always a lot of things going on but you know the thing that i think i want to you know just touch on briefly is like how big d5 could get and and i don't want to say that it will get there or that um you know that i'm not saying that's inevitable but what the upside is here and and you know i think the upside is huge and and you know the reason basically is um that when you have a ton of different applications all uh you know composing with each other in a decentralized ecosystem you get a sort of power uh that that is hard to get with centralized products because they can plug into each other and and and this is just super super powerful you know anyone who's tried to take tons of centralized processes and uh and string them together has like seen the pain in doing that and that like one or the other will you know one will refuse to work with the other there'll be hold ups one will be expecting the other to deliver and happen payment processors are flaky and you know like every piece of this is just it's a pain and you know when you're trying to combine like five things together something's gonna break and um and so instead you see these sort of islands of you know companies that have their financial suite that is like basically just like one internal thing that doesn't plug into other people's but in d5 you know we're already starting to see a bunch of uh you know a bunch of of companies uh of protocols uh build on top of each other which is really exciting and um and you know i think that there's there's a case to be made that that this could get huge that this could get to a billion people or more that you could have a billion people using a single ecosystem in d5 and that you know you could have tens of trillions of dollars flowing through it and tons of of protocols all all gaining from each other all able to build on each other and that's worth a ton and so you know that that's sort of the i that that that's what i think is like you know really the the most exciting part and you know i think really the thing that kicked all this off was something which uh you know really a theory improved uh a number of years ago which is that a blockchain didn't just have to be a place to to transfer coins um it could be a generalized you know distributed computer basically it's basically term complete and and and as soon as there people start showing that in practice you know it started to all of a sudden become clear that you know directly like anything not anything like i don't know like shoes are probably not going to be i mean maybe nfts but physical shoes kind of need need the you know the soles and the laces and stuff but uh you know but i but that i in general like a huge number of industries could be moved on chain because you know you can do arbitrary things there and that you know as we sort of go forward through the next decade um and and look towards how big defy could become you know i think what we should be thinking about is how do we get there what do we have to do to get from here to there and um and you know what what do we have to build we have to convince um what is the product that that we should be designing that we need to be designing that will unlock the ability for a ton of other protocols to move on and thinking about what are the primitive financial objects that you know if we roll these out then we can go to visa and say hey look we have all this built for you already all these protocols all these tools and all this power um and i you know we think it's now compelling that that you should move your business launch and we think it's gonna help your business and and and as soon as you can get to that point all of a sudden you've tab serve like really really big potential uh to to generate waves and to get uh get huge conversions and so you know that's sort of what i think i'm most excited about going forward is figuring out what structures what protocols what projects we need to do that and and then doing them and building it and you sort of realizing this vision of uh you know of having a generalized decentralized you know computation network used um to process a huge amount of what's going on in the world um anyway i uh i you know i'll i'll leave it off there for now um but i that's what um that's where i think all the value lies rather than thinking about you know what can we do to kind of maximize the valuation of of a you know of another token you know this week or something like that