Ethereum developer Federico Carone says the growing influence of companies like Paradigm on the network could pose a “backdoor risk” to the Ethereum ecosystem.
In a post on Sunday, the Ethereum core developer, who goes by the name “Fede intern” on X, said, Argue Although Paradigm is “creating things of value for society,” he is concerned about the growing influence of venture capital whose ultimate goals are driven by profit and impact.
“I have been saying for the past couple of years that the influence of the model within Ethereum could become a relevant risk to the ecosystem. I believe this will become increasingly clear to everyone in the coming months.”
Carone added that while Paradigm’s hiring of Ethereum’s lead researchers and funding open source libraries that are “critical to Ethereum” sounds good on the surface, it’s not for those who believe Ethereum should represent a “philosophical and political” movement that is “bigger than any company.”
Paradigm has produced a series of Ethereum runs over the years, which also includes Ethereum development software based on the Rust language.
One of its most recent notable plays involves incubating rival tier-one blockchain technology, Tempo, in partnership with fintech giant Stripe.
Tempo is still in the works and will be an L1 stablecoin focused on payments with Stripe primarily controlling the network. Its ethos represents a stark contrast to Ethereum’s decentralized and open-source nature, since it will be a corporate-controlled chain.
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Ultimately, Carone’s concerns revolve around the different goals of decentralized and centralized entities, and the dangers of allowing any type of fund — not just the model — to have too much influence on the Ethereum ecosystem.
“Ethereum should be very cautious about developing deep technical dependence on a fund that plays cards in a very strategic way.”
“When companies gain too much visibility and influence over open source projects, priorities start to shift away from the long-term community vision and toward corporate incentives. This is how misalignment starts.”
Cointelegraph reached out to Paradigm for comment, but had not received a response at the time of writing.
Typical crypto projects
Paradigm is a cryptocurrency and AI investment firm founded in 2018 by former Sequoia Capital partner Matt Huang and Coinbase co-founder Fred Ehrsam.
Paradigm has invested broadly across the market, covering everything from DeFi and NFTs to blockchain security, infrastructure and startups.
In its initial announcement of Tempo in September, Paradigm shown Its goal was to push technology and cryptocurrency adoption forward through “a combination of investing, building, and research.”
“This helps us understand points of friction and opportunities, and keeps us close to the edge of what is possible,” the announcement said.
Outside of pure financial plays, It has made several moves that show its firm conviction in the cryptocurrency community. It has filed an amicus brief in support of Tornado Cash co-founder Roman Storm, and has hired respected blockchain investigator ZachXBT as an advisor to fund research and help protect its venture capital firms.
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