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Blockchains developed and overseen by businesses will ultimately perish, as users will not desire a chain managed by a centralized authority, as per Eli Ben-Sasson, co-founder and CEO of the blockchain firm StarkWare.
Ben-Sasson stated in a post on X this past Monday that he was reinforcing his stance that “corporate” chains will not endure because they are misaligned with a core principle of blockchain, which necessitates them to eliminate their role as a centralized entity.
“The crucial aspect of blockchain is a framework that eliminates a centralized authority. It comes at a price: A highly intricate technology that’s difficult to construct and challenging to navigate. Even if we implement AA to develop a simplified user experience, the underlying technology remains exceptionally complicated,” he remarked.
Bitcoin, the original cryptocurrency, was crafted to revolutionize traditional financial systems and restore financial power to individuals.
This may explain why some members of the crypto community have been concerned about new blockchains such as Stripe’s latest layer-1, Tempo.
Businesses will withdraw if user adoption is minimal
Ultimately, Ben-Sasson expressed that it’s positive for corporations to seek adoption of blockchain technology since it indicates “blockchains are no longer this intimidating concept.”
In reply to a question from an X user, he also concurred that in the near term, the chains of large financial corporations could facilitate mainstream acceptance.
Nevertheless, he foresees that in a few years, the blockchains established by these companies will likely be neglected when they “create excessive complications from a technical standpoint,” and after users opt to steer clear of them due to their lack of appeal from a “DeFi/self-custody/control-my-assets perspective.”
“Fast forward a few years: Corporate chains will end up with the intricate technology but without the added value for users, which is a lack of a central authority to oversee them. At this juncture, these chains will lose the attention from corporations.”
Community divided on the future of corporate blockchains
Meanwhile, an X user known as Boluson contended that most corporations do not require a blockchain; they are simply feeling compelled to embrace the technology due to fears of falling behind.
Related: How Bitcoin’s three pillars are about to fix money — StarkWare CEO
“Not every initiative in Crypto needs to be based on blockchain; now everyone aims to establish something around forming a blockchain,” they asserted.
Rob Masiello, the CEO of Sova Labs — a company focused on constructing Bitcoin-native infrastructure — mentioned he believes “corporate chains” will be effective and beneficial for the companies that own and operate them.
“Users simply won’t have any means to engage in their benefits. Base is a prime example,” he indicated.
Other users speculated that corporations might establish blockchains but subsequently transfer control to native companies or seek to acquire existing blockchains and then enhance them for specific purposes.
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