Ethereum creator criticizes Facebook and Twitter blockchain projects

The co-founder of the Ethereum platform questioned the possible success of blockchain projects being developed by Facebook founder Mark Zuckerberg and Twitter’s Jack Dorsey.

In the opinion of Vitalik Buterin, the projects of the two tech giants lack the necessary features to have features like DeFi.

In an interview with Bloomberg TV, Vitalik made several statements about the blockchain projects of Mark Zuckerberg and Jack Dorsey. According to him, Twitter founder’s plan to create a DeFi platform on Bitcoin is unsustainable because Bitcoin has limited functionality and is unable to become an effective solution for decentralized applications.

“I’m skeptical about decentralized finance in Bitcoin… in Ethereum, there’s native functionality that allows you to essentially directly put ether or Ethereum-based assets into these smart contracts, into these vaults. There are then arbitrary conditions that can govern how these assets are released.”

Jack Dorsey intends to create a bitcoin-based decentralized finance platform, for Vitalik, the solution may not get any better than Ethereum.

“Jack will basically have to create his own system that enforces rules and, at the Bitcoin layer, the bitcoins will just have to belong to a multi-sig wallet controlled by Jack or the system’s participants. It looks similar, but it will end up being something with a much weaker trust model. This is the whole reason why Ethereum started as a standalone system in the first place.”

Facebook

As for Facebook’s blockchain project, Zuckerberg wants to turn the social network into a metaverse, intelligently predicting that the future of the Internet lies in decentralized technologies.

But, according to Vitalik, Facebook’s currency should be tossed into an existing blockchain, rather than trying to create its own blockchain.

He also mentioned the advantages of the Ethereum blockchain, such as the ability to launch smart contracts and smart mechanisms to manage tokens. Vitalik is confident that Ethereum will become a powerful ecosystem in the next 10 years.

In mid-July 2021, Jack Dorsey revealed plans to create a TBD open source blockchain platform to launch decentralized financial services. He clarified that he is planning to build it based on the bitcoin blockchain.