At the Devconnect conference in Buenos Aires, Ethereum (ETH) co-founder Vitalik Buterin raised concerns about the growing dominance of large institutions like BlackRock over cryptocurrencies, particularly Bitcoin (BTC) and ETH. He emphasized that this increased influence could potentially cause serious problems for the decentralized nature of these networks.
Risks to Decentralization of Ethereum
Buterin has been prompted to address this issue in discussions about the impact of institutional interest, especially after BlackRock launches its Bitcoin and Ethereum exchange-traded funds (ETFs) in early 2024.
that question How the cryptocurrency community can protect itself from being “captured” by large entities like BlackRock highlights urgent concerns about the future of decentralization in the space.
Buterin also expressed concern that if institutional players continue to expand their Ethereum holdings, those who prioritize decentralization may be alienated.
This situation may result in: fundamental change Optimize for institutional needs and make it increasingly difficult for regular users to operate nodes.
Buterin warned that “it's easy to crowd out others” and said they should focus on attributes they typically lack, such as creating protocols that are global, permissionless and censorship-resistant.
This week, BlackRock made headlines by registering a staked Ethereum fund in Delaware, signaling its intention to enter staked Ethereum. ETF market. Their flagship Ethereum ETF currently manages approximately $10 billion worth of ETH tokens.
Quantum risks ahead of 2030
In addition to concerns surrounding institutional participation, the specter of quantum computing has major implications for the future of cryptocurrencies such as Bitcoin and Ethereum.
Recently, Google announced a groundbreaking technology. quantum computing capabilitiesIt follows similar developments from Microsoft, which unveiled a new quantum activation chip earlier this year.
Quantum researcher Scott Aaronson noted the incredible potential for quantum computers to run Shor's algorithm and compromise the cryptographic standards that protect Bitcoin and Ethereum.
He suggested that the current pace of hardware innovation could lead to the development of fault-tolerant quantum computers before the next US presidential election, increasing the urgency to address potential vulnerabilities. blockchain technology.
“There’s no need to panic, but we need to be serious,” said Alex Pruden, CEO of quantum computing risk firm Project 11. He warned that sufficiently advanced quantum computers could break cryptocurrencies at the most fundamental level.
As the discussion turns to the need to be proactive, Bitcoin developers have also been urged to prepare for a post-quantum future, which some experts predict could come as early as 2030.
Théau Peronnin, CEO of Alice & Bob, advised at the Web Summit conference in Lisbon that developers should consider switching to more robust blockchains by 2030 to protect against potential quantum threats.
“We’re going to have a good few years, but I won’t own Bitcoin,” he warned, emphasizing the importance of tackling these issues head-on.
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