Vitalik Buterin criticizes Jack Dorsey’s Bitcoin-enabled DeFi plans for its “weaker trust model”

Key Takeaways:

  • The Ethereum CEO critisizes any project that attempts to build dApps atop Bitcoin.
  • Jack Dorsey’s plans motives were “understandable”, but could lead to a “weaker trust model”
  • Decentralized Twitter and Facebook could be in the books, says Mr. Buterin.

YEREVAN (CoinChapter.com) – Vitalik Buterin, the founder and chief executive of Ethereum, criticized Twitter CEO Jack Dorsey’s plans to create a Bitcoin-based DeFi project, calling it a “weaker trust model.”

Mr. Buterin pointed out his skepticism towards any project that attempts to add functionality to the Bitcoin blockchain that doesn’t exist within its ecosystem in the first place.

Mr. Buterin’s Ethereum vs Bitcoin-based DeFi

During the interview with Bloomberg’s Studio 1.0, Mr. Buterin and the host Emily Chang mainly discussed the Ethereum platform itself and its advantages over the Bitcoin blockchain. The CEO commented that he originally decided against building any applications atop Bitcoin because he would advise other people not to.

Satoshi Nakamoto did not create the Bitcoin blockchain to hold the ever-growing ecosystem of applications. Ethereum, on the other hand, provides services other than supporting a digital asset. Mr. Buterin went on to say that he understood the incentive behind Mr. Dorsey’s desire to take Twitter a step further but called it a “weaker trust model.”

Bitcoin does not have the [buil-in] functionality to the same extent. Jack is going to have to create his own system essentially. It looks similar [to Ethereum] but it will end up being something with a weaker trust model.

commented the CEO.

Some users agreed with Mr. Buterin’s view and replied to the news with heavy skepticism.

Dorsey buterin ethereum bitcoin

Others pointed out that such a platform already exists and it’s Ethereum.

Vitalik Buterin, Vitalik Buterin criticizes Jack Dorsey’s Bitcoin-enabled DeFi plans for its “weaker trust model”

Also read: Ethereum exchange deposits drop to 2-year low as ETH nears its previous ATH

Decentralized social media?

Mr. Dorsey also attempted to launch a decentralized version of Twitter in a project called Blue Sky. But he is not the only one who aims at decentralizing a social media platform.

Mark Zuckerberg, the founder of Facebook, dabbed into the crypto-sphere with his project Libra, a blockchain-based payment system, which Mr. Buterin called “possibly the wrong approach.”

Mark is clearly trying to figure out what the next stage after the internet is, and actually get into it and create it, before […] Facebook is left in the dust.

commetned Mr. Buterin

The Ethereum CEO pinpointed the main problem with both social media platforms as the distrust from the people. Some users agree as they saw Mr. Dorsey’s attempts to decentralize Twitter as a step towards loosening content control, calling the current system “Orwellian.”

Also read: Peter Brandt, who predicted 60-90% Cardano crash scares Bitcoin bulls.

Vitalik Buterin saw Jack Dorsey’s attempts at building a wide functionality atop Bitcoin unreasonable. He asserted that Bitcoin could not hold those functions. Therefore, it wouldn’t compete with other platforms that already provide them from the get-go.

He also commented that the intention to build social media atop blockchain technology has merit. It could open new possibilities for users and companies alike.

Also read: Crypto maxis criticized for promoting Bitcoin amid the Afghanistan crisis.

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