Speaking after the FTX crash, Ethereum co-founder Vitalik Buterin offered his thoughts and some positives from one of cryptocurrency’s biggest black swan events.

In an interview with Bloomberg on Nov. 20, Buterin said the FTX debacle contained lessons for the entire crypto ecosystem.

he admit The underlying stability of distributed ledgers and the technology that powers the crypto-economy is not being questioned. The problem with this example (and several previous ones) is people, not technology.

Buterin also labeled the FTX debacle as a “huge tragedy,” but added that it reiterated the stance many in the ethereum community have had on centralization:

“That said, many in the Ethereum community also see this situation as validation of something they’ve always believed: that anything centralized is suspicious by default.”

That ethos includes trusting open and transparent code on top of humans, he added.Over the weekend, Buterin released a guide Possesses a “safe CEX” with a bankruptcy certificate.

Exchanges, he said, could create “cryptographic proofs that their funds held on-chain are sufficient to cover their responsibilities to users.”

It is understood that FTX’s problems stemmed from the exchange’s use of customer deposits for other purposes. After a flood of withdrawal requests flooded the exchange earlier this month, the exchange found that it could not meet the withdrawal demand with the current liquidity.

related: FTX Fiasco Means Consequences for Cryptocurrency in Washington DC

Vitalik Buterin isn’t the only industry leader to speak out about FTX’s fallout recently. On November 17, Binance CEO Changpeng Zhao Say While regulation is necessary, it is more important for industry players to lead by example.

On the sidelines of the Indonesian Fintech Summit 2022, Zhao said that the whole FTX incident could set the crypto industry back “a few years” and that regulators could “scrutinize the industry more closely, which could be a good thing, to be honest.”