At the Devconnect conference in Buenos Aires, Ethereum (ETH) co-founder Vitalik Buterin raised concerns about the growing dominance of giant institutions like BlackRock over cryptocurrencies, especially Bitcoin (BTC) and Ethereum. He stressed that this increased influence could lead to significant challenges to the decentralized nature of these networks.
Risks to Decentralization in Ethereum
Buterin was asked to address this issue during a discussion on the implications for institutional interest, particularly following BlackRock’s launch of exchange-traded funds (ETFs) for Bitcoin and Ethereum in early 2024.
he He doubted How the cryptocurrency community can protect against being “taken over” by large entities like BlackRock highlights a pressing concern about the future of decentralization in the space.
Buterin also expressed concerns that if institutional players continue to expand their Ethereum holdings, those who prioritize decentralization may find themselves marginalized.
This situation may result Substantial changes of the Ethereum network, optimizing it for institutional needs and making it increasingly difficult for ordinary users to run nodes.
Buterin warned that it “easily pushes others away,” also noting the need to focus on traits that are usually rare, such as creating a universal, permissionless, and censorship-resistant protocol.
BlackRock made headlines this week by registering an Ethereum staking fund in Delaware, signaling its intention to enter the Ethereum staking fund. ETF market. The leading ETF currently has nearly $10 billion worth of ETH tokens under management.
Quantum risks before 2030
In addition to concerns surrounding institutional involvement, the specter of quantum computing looms large over the future of cryptocurrencies like Bitcoin and Ethereum.
Recently, Google announced a breakthrough in Quantum computing capabilitiesfollowing similar developments at Microsoft, which unveiled a new quantum-enabling chip earlier this year.
Quantum researcher Scott Aaronson pointed to the worrying potential for quantum computers to implement Shor’s algorithm, which could harm the cryptographic standards that secure Bitcoin and Ethereum.
He noted that the current pace of hardware innovation may lead to the development of a fault-tolerant quantum computer before the next US presidential election, adding more urgency around potential vulnerabilities in Blockchain technology.
“We don’t need to panic, but we need to be serious,” emphasized Alex Broden, CEO of quantum computing risk firm Project 11. He warned that sufficiently advanced quantum computers could crack cryptocurrencies at their fundamental level.
As the discussion turns toward the need for proactive measures, Bitcoin developers have also been urged to prepare for a post-quantum future, which some experts predict could come as early as 2030.
Theo Pironen, CEO of Alice & Bob, advised during the Web Summit in Lisbon that developers should consider moving to a stronger blockchain by 2030 to protect against potential quantum threats.
“You should have a few good years ahead of you, but I’m not going to hold my bitcoin,” he warned, stressing the importance of addressing these challenges head-on.
Featured image of DALL-E, chart from TradingView.com
Editing process Bitcoinist focuses on providing well-researched, accurate, and unbiased content. We adhere to strict sourcing standards, and every page is carefully reviewed by our team of senior technology experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
The post Ethereum Co-Founder Highlights Threats From BlackRock’s Institutional Influence first appeared on Investorempires.com.
