StarkWare CEO Warns: ‘Corporate Chains’ Will Fail Without Adopting Crypto’s Core Values
Eli Ben-Sasson, the co-founder and CEO of StarkWare, has a strong caution to companies that want to build their own blockchains. Ben-Sasson says that “corporate” blockchains, also called “corpo chains,” will fail if they continue to operate under centralized management.
In a recent article on X, he shared his thoughts, saying that decentralization is the most essential part of blockchain, something corporate chains lack.
He said that the real breakthrough of blockchain technology is that it gives people direct control by eliminating central intermediaries. He said, “The key part of blockchain is a system that gets rid of a central entity.”
He also that this decentralization comes with technical challenges that many firms don’t understand. Even with account abstraction, a new feature that aims to improve the user experience through smart wallets, the underlying technologies remain very complex and challenging to keep up with.
Companies Invest in Short-term Blockchain Projects
Ben-Sasson agreed that corporate efforts may assist make blockchain more common, but he also said many of these ventures will ultimately fail. He said that as corporate blockchains get more complicated, they will be harder to use and less interesting to users. People will probably lose interest once they realize they don’t have self-custody or the freedom that is key to ideas.
Ben-Sasson cautioned that “quick forward a few years,” corporate chains will have the complicated tech but not the added benefit for users. There is no central organization to regulate them. He stressed that even though corporate initiatives may viewm promising at first, they will become irrelevant as customers viewk decentralized options that prioritize ownership and transparency.
The Argument About Blockchain’s Future in Business
People in the crypto community are talking about what Ben-Sasson said. Some people argue that businesses are rushing to develop blockchains solely to stay competitive, even though they don’t fully understand what the technology is for.
Boluson, an X user, said that most businesses don’t really need a blockchain and are just using it because they don’t want to be left behind.
But some people view things diversely. Rob Masiello, the CEO of Sova Labs, said that these “corp chains” might not let people take part in their success, but they could still do well in business. Masiello used Base network as an example of how corporate blockchains may succeed in small ecosystems, even when there aren’t many reasons for users to use them.
Accepting The Original Ideas Behind Crypto
Ben-Sasson’s main point is that companies should adopt the basic principles of cryptocurrency: decentralization, openness, and personal control. The idea behind was to break the power of centralized banking systems and give people more control over their money.
Ben-Sasson thinks that corporate chains that don’t follow these rules will become less critical or go out of business entirely in the long term. The future of will depend on the distinction between open, decentralized systems and permissioned, corporate-controlled ones as the blockchain sector continues to evolve.
