Ethereum News Today: Ethereum Co-Founder Buterin Compares Visa's Origins to DAOs, Highlights Centralization Shift

Ethereum co-founder Vitalik Buterin recently commented on the early structure of Visa Inc., drawing comparisons between the payment giant and modern decentralized autonomous organizations (DAOs). In a social media post, Buterin acknowledged that Visa was initially founded with principles akin to those of decentralized systems, emphasizing collaboration and shared infrastructure among independent financial institutions. However, he noted that over time, the network evolved into a more centralized and profit-focused model [1].

Buterin’s remarks were in response to a post by Mihailo Bjelic of Polygon, who highlighted Visa’s origins as a co-operative and likened it to a “proto-DAO.” Bjelic pointed out that numerous financial institutions historically adopted similar cooperative structures before transitioning to centralized, profit-driven models [2]. Buterin echoed this sentiment, suggesting that the evolution of Visa serves as a relevant case study for the crypto community, particularly in understanding the potential pitfalls of centralization in systems designed to be decentralized [3].

The discussion emerged amid ongoing debates about Visa’s role in restricting certain video game titles on platforms like Steam and itch.io. Activist group Collective Shout had raised concerns with Visa and Mastercard over games it claimed promoted violence against women, leading to content removals or reclassifications by platform operators. Visa and Mastercard denied directly ordering such changes, stating instead that they allow all legal transactions while expecting merchants to avoid processing illegal or brand-damaging material. Valve, the company behind Steam, indicated that it received these concerns indirectly through intermediaries, not directly from the payment processors [4].

The controversy has reignited discussions about the influence payment processors exert over content availability. Some developers have responded by making their games free or seeking alternative payment solutions, while others have proposed decentralized alternatives such as blockchain-based marketplaces or custom payment processors. These efforts reflect broader concerns about financial control and the need for more open and decentralized economic systems [5].

Buterin’s perspective highlights the tension between maintaining decentralized ideals and the practical realities of scaling financial infrastructure. His analysis reinforces the view that decentralization is not only a technical challenge but also a cultural and organizational one. The ongoing scrutiny of Visa’s evolution provides a historical lens through which to examine governance shifts in decentralized projects and serves as a reminder of the importance of preserving core principles as systems grow [6].

The debate underscores the broader conversation around the role of payment networks in shaping content accessibility, even when materials remain legally permissible. For both the gaming and blockchain industries, the issue illustrates the delicate balance between open access and the policies of financial intermediaries. As discussions continue, the crypto community remains attentive to how these developments might influence the future of decentralized finance and governance structures [7].

Source: [1] U.Today (https://u.today/ethereums-buterin-compares-visa-origins-to-daos)

[2] Coinpedia (https://coinpedia.org/crypto-live-news/vitalik-buterin-says-visa-started-like-a-dao-now-seen-as-centralized/)

[3] AInvest (https://www.ainvest.com/news/ethereum-news-today-vitalik-buterin-compares-visa-origins-daos-highlighting-centralization-shift-2508/)

[4] Blockchain News (https://blockchain.news/flashnews/vitalik-buterin-highlights-visa-s-decentralist-origins-vs-modern-daos-lessons-for-dao-governance-and-eth)

[5] Odaily (https://www.odaily.news/en/newsflash/442497)

[6] CoinMarketCap (https://coinmarketcap.com/community/articles/6897eddf0fda8d1ccc6add29/)