Ethereum Co-Founder Buterin Warns of Decentralization Erosion

Vitalik Buterin, the co-founder of Ethereum, recently raised concerns about the future of the Ethereum network at the Ethereum Community Conference in Cannes. He warned that Ethereum could lose its leading position in the blockchain world if it continues to erode its founding principles. Buterin emphasized that the crypto world is at a critical juncture, where decentralization is no longer enough to claim legitimacy. He proposed three tests to reveal hidden flaws in so-called decentralized projects: the withdrawal test, the insider attack test, and the trust base test. These criteria aim to uncover vulnerabilities in Layer 2 solutions and application interfaces that give users an illusion of control while keeping the keys to the house.

Buterin also offered a historical interpretation of the moment, noting that the crypto world has left the artisanal era and is now dominated by giants and heads of state. He cited Donald Trump's recent conversion to the crypto cause as a sign that the underground is dead. Buterin warned that if the crypto space becomes a marketplace driven by the same logics as traditional finance, what remains of the original dream of emancipation?

Buterin advocated for native privacy, where privacy is a basic requirement and not a secondary option. He criticized decentralized autonomous organizations (DAOs) with buyable votes, calling them false democracies disguised as decentralized governance. He asked a simple question: “Does what you build make your users freer?”

Buterin's warnings come at a time when the Ethereum network is facing challenges of privacy, lowering gas fees, and fairer governance. He plays both engineer and philosopher in driving Ethereum forward. Meanwhile, Charles Hoskinson, the founder of Cardano, has criticized Ethereum for its hypocrisy over decentralization, marking the beginning of a battle of visions in the blockchain world.