Blockchains created and controlled by companies will eventually die out 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 message to
“The important element of blockchain is a system that gets rid of a central entity. That comes at a cost: a very complex technology that is difficult to build and difficult to use. Even if we apply AA to create simplified UX, the technology under the hood is still very complex,” he said.
Source: Eli Ben-Sasson
Bitcoin, the first cryptocurrency, was designed to disrupt mainstream financial institutions and return financial power to individuals.
This may be why some members of the crypto community are wary of new blockchains like Stripe’s new layer-1, Tempo.
Companies will pull back if user adoption is low
Ultimately, Ben-Sasson said it’s great that companies want to adopt blockchain technology because it means “blockchains are no longer so scary.”
In response to an X user’s question, he also agreed that in the short term, the chains of major financial giants could help mainstream adoption of the system.
However, he predicts that the blockchains built by these companies will most likely be abandoned in a few years if they “technically cause too many headaches,” and after users choose to avoid them because they are not attractive enough from a “DeFi/self-custody/control of my assets” perspective.
“Fast forward a few years: corporate chains will end up with the complex technology, but without the added value for users, which is no central entity to control them. At that point, these chains will lose the focus of companies.”
Community divided over the future of business blockchains
Meanwhile, an X-user led by Boluson argued that most businesses don’t need blockchain; they just feel pressured to adopt the technology because they’re afraid of falling behind.
Related: How Bitcoin’s Three Pillars Are About to Make Money – CEO of StarkWare
“Not every project in Crypto needs blockchain, now everyone wants to build something around creating a blockchain,” they said.
Rob Masiello, the CEO of Sova Labs – a company focused on building Bitcoin-native infrastructure – said he thinks “business chains” will be successful and useful for the companies that own and run them.
“Users simply don’t have any way to participate in their benefit. Base is an example,” he said.
Other users speculated that companies could create blockchains but then hand the reins to indigenous companies or acquire existing blockchains and then scale them to their purpose.
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