Corporate-controlled blockchains are destined to fail in the long run, according to Eli Ben-Sasson, co-founder and CEO of StarkWare. Speaking on X (formerly Twitter), Ben-Sasson argued that centralized blockchain systems contradict the core principles of decentralization that define technologies like Bitcoin and Ethereum. His comments come amid growing debate over the rise of โcorporate chainsโ โ blockchain networks developed and managed by large companies entering the crypto space.
- StarkWare CEO Eli Ben-Sasson predicts that corporate blockchains will eventually be abandoned.
- He believes blockchain technology must remove centralized control to deliver true value.
- Corporate chains may assist early mainstream adoption but will lose users over time.
- Community opinions remain divided on whether corporations should build their own blockchains.
- Critics argue many firms adopt blockchain out of fear of being left behind rather than real need.
Ben-Sasson stated that blockchains created by corporations are not sustainable, as users will eventually reject systems controlled by a central authority. He emphasized that decentralization is the fundamental concept of blockchain, despite its complexity and challenges in development and usability.
Bitcoin, the first cryptocurrency, was designed to disrupt traditional finance and empower individuals through decentralization. This may explain why many within the crypto community remain skeptical about new corporate-backed blockchains like Stripeโs layer-1 network, Tempo.
Corporations will back off if user adoption remains low
Ben-Sasson acknowledged that corporate interest in blockchain is positive because it signals wider acceptance of the technology. However, he agreed that while these corporate chains could accelerate mainstream adoption in the short term, their long-term survival is unlikely.
He predicted that many such networks will eventually be abandoned due to high technical complexity and limited appeal to users who prioritize DeFi, self-custody, and control over their digital assets.
โFast forward a few years: Corporate chains will end up with the complex tech but without the added value for users, which is no central entity to control them. At that point, these chains will lose the focus from corporates.โ
Community divided on the role of corporate blockchains
Not everyone shares Ben-Sassonโs view. An X user, Boluson, argued that most corporations donโt need blockchain technology and are adopting it mainly to avoid being perceived as outdated. โNot every project in crypto needs a blockchain,โ the user wrote.
Rob Masiello, CEO of Sova Labs, which develops Bitcoin-native infrastructure, countered that corporate chains can succeed โ though only for the benefit of the companies that own them. โUsers just wonโt have any way to participate in their upside. Base is an example,โ he added.
Other community members speculated that corporations might eventually transfer control of their blockchains to native crypto projects or acquire existing decentralized networks to scale them for commercial use.
