Blockchains owned and managed by corporations will ultimately fade away, as users are unlikely to support a network dominated by a central authority, claims Eli Ben-Sasson, co-founder and CEO of blockchain firm StarkWare.
In a post on X, Ben-Sasson asserted his belief that “corporate” chains will not endure, as they contradict a core principle of blockchain, which necessitates the removal of central authority.
“The fundamental aspect of blockchain is a framework that eliminates a central authority. This approach comes with challenges: a complex technology that is difficult to create and use. Even if we implement AA for a simplified user experience, the underlying technology remains intricate,” he shared.
Bitcoin, the pioneering cryptocurrency, was created to challenge traditional financial institutions and empower individuals financially.
This may explain the skepticism among some crypto enthusiasts towards emerging blockchains like Stripe’s new layer-1, Tempo.
Corporations will retreat if user adoption is minimal
Ultimately, Ben-Sasson mentioned that it’s positive for corporations to embrace blockchain technology as it indicates that “blockchains are no longer viewed as a daunting entity.”
Responding to a user on X, he also concurred that in the short term, chains from large financial institutions might facilitate mainstream adoption.
However, he forecasts that in the coming years, the blockchains developed by these companies will likely be abandoned as they “create significant technical challenges,” leading users to sidestep them due to a lack of appeal from a “DeFi/self-custody/control-my-asset standpoint.”
“Fast forward a few years: Corporate chains will end up with complex technology but without the added value for users, which is the absence of central control. At that juncture, these chains will lose corporate interest.”
Community divided on the future of corporate blockchains
Meanwhile, an X user named Boluson contended that many corporations do not require a blockchain; they are merely succumbing to the pressure to adopt technology due to fears of obsolescence.
Related: How Bitcoin’s three pillars are about to fix money — StarkWare CEO
“Not every project in Crypto needs a blockchain; now it seems everyone wants to develop something involving blockchain technology,” they remarked.
Rob Masiello, CEO of Sova Labs—a company focused on building Bitcoin-native infrastructure—stated that he believes “corporate chains” will prove beneficial for the companies that own and operate them.
“Users will just lack any method to share in their upside. Base is a prime example,” he noted.
Other users speculated that corporations might create blockchains only to transfer control to native firms or seek to acquire existing blockchains and scale them for their purposes.
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