Ethereum Creator Vitalik Buterin Censures Facebook And Twitter’s Crypto Plans

Vitalik Buterin, creator of Ethereum commented through Bloomberg on Square and Facebook’s blockchain efforts.

Recall that Jack Dorsey, CEO of Twitter and Square, revealed his plans for a DeFi platform based on Bitcoin in July. He said the platform would be a competitor to Ethereum.

Reacting to Dorsey’s announcement, Buterin stated his skepticism for the Square’s anticipated DeFi plans. His major reason was the dependence of the firm on Bitcoin.

Buterin explained that Ethereum’s smart contracts and native functions work like ‘lockboxes.’ With such operations, DeFi investment terms can’t be broken. Also, there’ll be no requirement holding of a user’s funds by the DeFi service.

Buterin analyzed the possibility of Square controlling user’s funds via multi-sig wallets that belong to different participants.

Furthermore, he said that Square’s CEO will build his personal system that will implement those rules. Buterin confirms that though the plan is similar to Ethereum, the end will give a weaker trust project model.

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Also, Buterin aired his view concerning Facebook’s project of Diem cryptocurrency. He stated that Mark Zuckerberg, the CEO, and founder of Facebook, is experimenting on the future. He further added that Facebook CEO is probing for the upcoming stage of the Internet in advance of the superannuation of Facebook.

By acknowledging Diem’s old identity of Libra, Buterin advised Facebook’s decision for a project naming “Rebirth of dead ends.”

Ethereum’s founder mentioned that Facebook has mistrust from many people as its major problem. He said the company still failed in its attempts to regain trust through the use of a Diem blockchain conglomerate. He revealed that several old members of Diem, like MasterCard, Visa, and PayPal, have also exited the group in 2019.

The project is still officially operational despite Buterin’s unfavorable disposition to Diem and its sluggish rollout. The company confirms its proposals of launching as of May.

There are still proposals on the possibility of building community-owned successors to Twitter and Facebook blockchain. Buterin comments that multiple projects are already attempting to do so. Furthermore, he revealed that most of these projects are Ethereum-based. However, it could be a threat as well as an opportunity.

Aave has one of the recent attempts of a social network based on the Ethereum blockchain. The proposal came in July and it’s for a Twitter competitor. This proposal was a response to Jack’s plans of building a platform for DeFi on Bitcoin.

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In the conclusion of his interview, Buterin highlighted some topics such as the transition to and scalability of Ethereum 2.0. Also, he mentioned the regulatory enforcement as well as decentralized finance projects in the ecosystem.