Ethereum Co-Founder Buterin Warns of Centralization Risks at ETHCC 2025

Vitalik Buterin, the co-founder of Ethereum, recently addressed the Ethereum Community Conference (ETHCC) 2025, emphasizing the importance of meaningful decentralization and long-term resilience over rapid, unchecked growth. Buterin's remarks come at a time when the crypto space is grappling with increasing centralization trends, which he argues could pose significant risks to the Ethereum network.

Buterin likened poorly designed decentralized applications (dApps) to "straw houses," suggesting that they lack the robustness needed to withstand the test of time. He urged builders and developers to prioritize the creation of dApps that are not only innovative but also resilient and decentralized. This call to action is a response to the growing concern that many dApps in the crypto space are not truly decentralized, despite the claims made by their developers.

The Ethereum co-founder also highlighted the irony of the situation, noting that the very idea of decentralization was born out of the failure of centralized systems to act transparently. He warned that if decentralization is merely a slogan and not a core principle, Ethereum could face substantial risks. This includes the potential for centralized control, which could undermine the trust and security that decentralized networks are meant to provide.

Buterin proposed three core test standards to evaluate the decentralization of the Ethereum network: the Exit Test, the Insider Attack Test, and the Trusted Computing Base Test. The Exit Test assesses whether user assets remain safe after the project team disappears. The Insider Attack Test evaluates the system's ability to resist internal wrongdoing. The Trusted Computing Base Test measures the amount of code trust required to protect user assets. Buterin pointed out that currently, most Layer2 networks and DeFi projects rely on tamperable backdoors or centralized front ends, and privacy solutions often expose user transaction history due to reliance on third-party logins. He emphasized the need to make privacy a default feature and streamline the code trust base.

On the tenth anniversary of the Ethereum mainnet launch, Buterin warned that if true decentralized protection cannot be achieved, Ethereum may repeat the fate of other technologies that were once in the limelight but quickly faded. He emphasized that the focus should be on creating a sustainable and resilient ecosystem, rather than chasing short-term gains or growth metrics. This perspective is crucial for the long-term success of Ethereum, as it aims to maintain its position as a leading blockchain platform for building decentralized applications.

Buterin's comments underscore the need for a more thoughtful approach to the development of dApps and the Ethereum network as a whole. The Ethereum network, proposed by Buterin in late 2013, has since become a cornerstone of the crypto space, known for its powerful blockchain platform that enables the creation of dApps. However, the increasing centralization trends in the crypto space pose a threat to this decentralized ethos. Buterin's warnings serve as a reminder that the community must remain vigilant and committed to the principles of decentralization to ensure the continued success and security of the Ethereum network.