Corporate-Controlled Blockchains Face Uncertain Future, Says StarkWare CEO

According to Cointelegraph, Eli Ben-Sasson, co-founder and CEO of StarkWare, has expressed skepticism about the longevity of blockchains controlled by corporations. In a recent post on X, Ben-Sasson reiterated his belief that "corpo" chains are unlikely to endure because they contradict a fundamental principle of blockchain technology, which is to eliminate the need for a central controlling entity. He emphasized that while blockchain technology is inherently complex and challenging to develop and use, its core value lies in decentralization. Ben-Sasson acknowledged that the interest of corporations in adopting blockchain technology is a positive sign, as it indicates that blockchains are becoming more mainstream. However, he predicts that corporate-controlled blockchains will eventually be abandoned due to technical complexities and a lack of appeal from a decentralized finance (DeFi) and self-custody perspective. He foresees that these chains will ultimately fail to provide the added value of decentralization, leading corporations to lose interest. The crypto community remains divided on the future of corporate blockchains. Some, like an X user known as Boluson, argue that many corporations do not genuinely need blockchain technology but feel compelled to adopt it to avoid being left behind. Others, such as Rob Masiello, CEO of Sova Labs, believe that corporate blockchains could be successful and beneficial for the companies that own and operate them, although users may not have opportunities to benefit from their success. There is also speculation that corporations might eventually transfer control of their blockchains to native firms or acquire existing blockchains to scale them for specific purposes.