At the Devconnect conference in Buenos Aires, Ethereum (ETH) co-founder Vitalik Buterin expressed concern about the growing control of large institutional investors like BlackRock over cryptocurrencies, particularly Bitcoin (BTC) and ETH. He emphasized that this increased influence could pose significant challenges to the decentralized nature of these networks.
Risks to Ethereum decentralization
Buterin was prompted to address the issue amid a debate about the impact of institutional investor interest, particularly after BlackRock launched a Bitcoin and Ethereum exchange-traded fund (ETF) in early 2024.
he asked a question The question is how the cryptocurrency community can protect itself from “capture” by large corporations like BlackRock, highlighting pressing concerns about the future of decentralization in the sector.
Buterin also expressed concern that if institutional investors continue to expand their holdings of Ethereum, it could alienate companies that prioritize decentralization.
This situation can have the following consequences: fundamental change The transition to the Ethereum network has optimized the network for the needs of organizations, making it increasingly difficult for everyday users to interact with nodes.
“That can easily alienate others,” Buterin warned, adding that there was a need to focus on attributes that would normally be scarce, such as creating global, permissionless, and censorship-resistant protocols.
This week, BlackRock made headlines by registering a staked Ethereum fund in Delaware, indicating its intention to enter staked Ethereum. ETF market. Their flagship Ethereum ETF currently manages approximately $10 billion worth of ETH tokens.
Quantum risk with an eye toward 2030
In addition to concerns over institutional involvement, concerns about quantum computing loom large over the future of cryptocurrencies such as Bitcoin and Ethereum.
Recently, Google announced a breakthrough. quantum computing capabilitiesa similar advance was made by Microsoft, which announced new quantum-enabled chips earlier this year.
Quantum researcher Scott Aaronson said there is an alarming possibility that quantum computers could run Scholl’s algorithm, potentially compromising 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 by the next US presidential election, increasing the urgency for potential vulnerabilities. blockchain technology.
“There’s no need to panic, but we need to get serious,” argued Alex Pruden, CEO of quantum computing risk firm Project 11, warning that sufficiently advanced quantum computers could destroy cryptocurrencies at their most fundamental level.
As the discussion shifts to the need for proactive measures, Bitcoin developers are being asked to prepare for a post-quantum future, with some experts predicting it could arrive as early as 2030.
Alice & Bob CEO Theo Perronan advised developers at the Web Summit conference in Lisbon that they should consider moving to a more powerful blockchain by 2030 to protect against potential quantum threats.
“We have a good few years ahead of us, but I wouldn’t own Bitcoin,” he warned, stressing the importance of tackling these challenges head-on.
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