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StarkWare Co-Founder Predicts Demise of Corporate Blockchains

StarkWare Co-Founder Predicts Demise of Corporate Blockchains

Corporate blockchains are doomed to fail, according to StarkWare co-founder Eli Ben-Sasson. He believes users will be reluctant to engage with networks controlled by centralized organizations.

The core element of blockchain is a system without a central governing body. This feature complicates and increases the cost of the technology. Corporate networks will inherit the technical complexity but will not offer users the main advantage—lack of control.

As a result, users will ultimately abandon such solutions in favor of non-custodial storage.

Meanwhile, Ben-Sasson acknowledged that in the short term, centralized projects might aid in the widespread adoption of the technology. They help make blockchain less “intimidating.”

The community is divided. Sova Labs head Rob Masiello believes corporate networks will be successful, but only for the companies that own them.

Users will not be able to participate in their development or profits. He cited the Base network by Coinbase as an example.

Other participants in the discussion suggested that many companies do not need blockchain. They adopt the technology out of fear of falling behind competitors.

There was also a suggestion that corporations might create networks with subsequent transfer of control or purchase existing projects for scaling.

In May, the StarkWare team launched Stark Two—a tool for verifying ZK-proofs on phones, laptops, and other everyday devices.

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