Jack Dorsey and Mark Zuckerberg might have big plans in the crypto world, but Vitalik Buterin is of the opinion that they are unlikely to gain much traction.
The engineer widely recognized as the inventor of Ethereum, the world’s most widely used blockchain, questioned Square Inc. CEO Dorsey’s plan to create a new business focused on decentralized financial services using bitcoin. . The largest cryptocurrency, Buterin said in an interview on Bloomberg Television, doesn’t really have the functionality to do that, as it was largely designed to be a “house coin.”
“In Ethereum there is a functionality that allows to directly put assets based on ETH or Ethereum in these smart contracts, in these safes, where there are arbitrary conditions that can govern how those assets are released,” said Buterin, one of the cryptocurrency developers most recognized. “Basically, Jack will have to create his own system that enforces those rules.”
Zuckerberg’s idea of turning Facebook Inc. into a “meta-reverse company” was also greeted with skepticism by the crypto mogul.
“Metaverse” refers to a vision of an internet-enabled virtual world where people have avatars and interact with digital assets and even bodily objects through augmented reality.
Zuckerberg is clearly trying to anticipate the next phase of the internet “before the rest of the world goes in a different direction and Facebook is adrift,” Buterin said. He noted that Zuckerberg has also been involved in the Libra cryptocurrency project, which is now called Diem and is backed by Facebook.
There is “great mistrust” of Facebook, Buterin said, so building your own platform could be unfortunate. Instead, it recommended that Zuckerberg build on the existing blockchain.
Established companies from Facebook and Twitter Inc. to JPMorgan Chase & Co. and Goldman Sachs Group Inc. have been working on ways to incorporate blockchain into their existing businesses. But many young, fast-moving companies have sprung up, signaling potential disruption.
Buterin says that blockchain technology poses a great threat to Facebook, Twitter, and other social networks. He indicated that startups could end up outperforming established companies.
Also, he continues with big plans for the Ethereum network. When asked where he envisions it in five to 10 years, Buterin replied, “Hopefully directing the metaverse.”