According to Eli Ben-Sasson, co-founder and CEO of blockchain company StarkWare, corporate-created and controlled blockchains will eventually die because users are not looking for a sequence controlled by a government.
Ben-Sasson said in a post on Monday
“The vital element of blockchain is a system that eliminates the necessity for a central entity. This comes at a price: a really complex technology that’s difficult to construct and difficult to make use of. Even if we apply AA to create a simplified user experience, the technology under the hood continues to be very complex,” he said.
Source: Eli Ben Sasson
Bitcoin, the primary cryptocurrency, was designed to disrupt mainstream financial institutions and provides financial power back to individuals.
This may very well be why some members of the crypto community were wary of recent blockchains like Stripe's recent Layer 1 pace.
Companies will draw back if user adoption is low
Ultimately, Ben-Sasson said it's great that firms wish to adopt blockchain technology since it means “blockchains aren't so scary anymore.”
In response to a matter from an X user, he also agreed that the chains of major financial giants could help mainstream adoption within the short term.
However, he predicts that the blockchains developed by these firms will most probably be abandoned in a number of years in the event that they grow to be “an excessive amount of of a headache from a technical perspective” and after users determine to avoid them because they usually are not attractive enough from a “DeFi/self-governance/control-my-asset perspective.”
“Just a few years later: corporate chains will find yourself having the complex technology, but without the added value for users, since there is no such thing as a central authority controlling it. At this point, these chains will lose corporate focus.”
Community disagreements concerning the way forward for enterprise blockchains
Meanwhile, an X user under the name Boluson argued that the majority firms don't need blockchain; They simply feel pressured to adopt the technology because they fear being left behind.
“Not every project in crypto needs a blockchain, now everyone wants to construct something around making a blockchain,” they said.
Rob Masiello, the CEO of Sova Labs, an organization focused on constructing Bitcoin-native infrastructure, said he believes they will likely be successful and useful to the businesses that own and operate them.
“Users simply won't have the chance to take part in their upside. Base is one example,” he said.
While other users speculated, firms could create blockchains but then hand the reins to homegrown firms or try to amass existing blockchains after which scale them in line with their purpose.
