According to Eli Ben-Sasson, co-founder and CEO of StarkWare, blockchains created and controlled by enterprises will ultimately fade away because users will not choose blockchains controlled by centralized entities.
Ben-Sasson reiterated on Monday in a post on X platform that "enterprise blockchains" are difficult to sustain in the long run because they do not adhere to the fundamental principle of blockchain, which is to "remove centralized entities."
He stated, "The key to blockchain is to establish a decentralized system. This comes at a cost: the technology itself is extremely complex, and the barriers to building and using it are high. Even with account abstraction (AA) simplifying the user experience, the underlying technology remains difficult to understand."
Bitcoin is the first cryptocurrency designed to disrupt mainstream financial institutions and return financial power to individuals.
This also explains why some members of the crypto community are cautious about emerging blockchains like Tempo, the first-layer blockchain recently launched by Stripe.
According to Ben-Sasson, the willingness of enterprises to adopt blockchain technology is a positive signal, as it means "blockchain is no longer perceived as frightening."
In response to a question from a user on the X platform, he also agreed that in the short term, blockchains launched by large financial enterprises will help drive mainstream adoption.
However, he predicts that in a few years, these enterprise-built blockchains are likely to be abandoned. The reason is that the technical challenges are too great, and users will choose to avoid these blockchains because they lack appeal in DeFi, self-custody, and asset control.
Meanwhile, a user on X named Boluson argued that most companies do not need blockchain; they simply feel pressured to adopt the technology to avoid being left behind.
"Not every project in the crypto space needs a blockchain; now everyone wants to build something around creating a blockchain," they said.
Rob Masiello, CEO of Sova Labs, a company focused on building Bitcoin-native infrastructure, stated that he believes they will be useful and successful for the companies that own and operate them.
"Users just cannot participate in the benefits. Base is an example," he said.
Other users speculated that companies might create blockchains but then hand over control to local companies or seek to acquire existing blockchains and then expand them for their purposes.
Related: Polygon head says he has been "questioning his loyalty to Ethereum (ETH)"
Original article: “StarkWare CEO: If the crypto spirit is not embraced, ‘enterprise chains’ are doomed to fail”
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