Blockchains created and controlled by corporations will eventually die because users don’t want a chain controlled by a central entity, according to Eli Ben-Sasson, co-founder and CEO of blockchain company Starkware.
Ben-Sasson said In a Monday post on X he doubled down on his opinion that “corpo” chains will not last because they are not aligned with a Basic concepts of blockchainwhich requires them to “eliminate their position as a central entity.”
“The essential element of blockchain is a system that gets rid of a central entity. This comes at a cost: a very complex technology that is difficult to build and difficult to use. Even though we apply AA to create a simplified UX, the tech under the hood is still complicated,” he said.
Bitcoin, the first cryptocurrency, was designed to Disrupt major financial institutions and return financial power to individuals.
This may be why some members of the crypto community have been It’s embarrassing of new blockchains like Stripe’s new layer-1 tempo.
Corporations will come back if user take-up is low
Ultimately Ben-Sasson says it’s good that corporations want to adopt blockchain technology because it means “blockchains are no longer this scary thing.”
In response to an X user’s question, he too agreed that in a short time the chains from large financial giants may help mainstream adoption.
However, he is guess That in a few years the blockchains built by these companies will likely be abandoned when they “cause massive headaches from a technical point of view,” and after users choose to avoid them because they’re not attractive enough from a “defi/self-custody/control-my-asset point of view.”
“Fast forward a few years: Corporate chains will end up with complex tech but without added value for users, with no central entity to control them. At that point, these chains will lose focus from corporations.”
The community is divided on the future of corporate blockchains
Meanwhile, an X user under Boluson’s handle Argued that most corporations do not need a blockchain; They just feel compelled to adopt technology fear of being left behind.
Related: How Bitcoin’s three pillars will soon fix the currency – Starkware CEO
“Not every crypto project needs to have a blockchain, now everyone wants to build something around the creation of a blockchain,” they said.
Rob Masiello, the CEO of Sova Labs, a firm dedicated to building bitcoin-native infrastructure, said He thinks it will be successful and profitable for the companies that own and operate them.
“Users will not have any way to participate in their reverse. The base is an example,” he said.
While other users conjecture Corporations can create blockchains but then hand the reins to native companies or look to acquire existing blockchains and then scale them up to purpose.
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