- Vitalik Buterin has questioned whether Jack Dorsey and Mark Zuckerberg’s crypto-related ventures would succeed.
- According to the co-creator of ethereum, Dorsey’s DeFi project based on bitcoin for payments business Square is practically unworkable.
- Buterin believes that Facebook’s future crypto-related efforts will be hampered by a “huge amount of mistrust.”
On Thursday, Vitalik Buterin, the co-creator of Ethereum, punched holes in Jack Dorsey and Mark Zuckerberg’s ambitions to enter into the digital asset space with their firms Square and Facebook.
In July, Square and Twitter CEO Jack Dorsey announced that the digital payments startup will create bitcoin-focused decentralized finance, or DeFi, business. According to Dorsey, the initiative would enable non-custodial, permissionless, and DeFi bitcoin services.
Buterin told Bloomberg that bitcoin, the world’s most popular cryptocurrency, lacks the capability to fuel such a project because it was created primarily as a “currency of the house.”
In a video interview released Thursday, Buterin said, “On ethereum, there’s native functionality that allows you to essentially directly put ETH or ethereum-based assets into these smart contracts, into these lock-boxes, where there’s then arbitrary conditions that can govern how those assets get released,”
“Jack is basically going to have to essentially create his own system that enforces those rules,” he continued.
DeFi has sparked a rush of interest because it has the potential to disrupt financial services by removing the intermediary and central control. DeFi apps built on ethereum have proven to be the most popular of the hundreds of initiatives developed.
However, the Taproot upgrade, which is expected later this year, will most likely help bitcoin DeFi.
Buterin, who just became an advisor to the Dogecoin Foundation, was also dubious of Zuckerberg’s desire to turn Facebook into a “metaverse” corporation.
The metaverse is a digital realm that represents a three-dimensional internet that connects the actual and virtual worlds. Zuckerberg told The Verge that Facebook has already spent substantially in virtual reality because it is the technology that “delivers the clearest form of presence.”
Buterin believes that Zuckerberg is attempting to foresee the next stage of the internet “before the rest of the world goes in a different direction and Facebook is left in the dust.”
He said that Facebook’s digital currency project Libra was hampered by a “huge amount of mistrust.” He believes it will be useless for the social media giant’s future crypto-related efforts, such as the creation of its own blockchain.
Instead, Facebook and Square should leverage existing blockchain networks, according to Buterin, because “there are already multiple projects trying to do that.”
“Hopefully running the metaverse,” Buterin stated when asked about his intentions for the ethereum network in the next five to ten years.