Ethereum founder warns the industry is at a critical turning point
Ethereum co-founder Vitalik Buterin delivered a keynote speech at the Ethereum Community Conference (EthCC) held in Cannes, France, issuing a stern warning to the audience: the cryptocurrency industry is at a ‘turning point’ and must mature quickly. He emphasized that decentralization must shift from a popular slogan to concrete user guarantees, or it will become another empty promise.
Vitalik bluntly stated: ‘Expanding the cryptocurrency industry is not necessarily a good thing; the clear goal is to build the right thing. We need a philosophical shift.’
He believes that as the industry gains mainstream recognition from large companies and political figures, builders must return to the core philosophy of decentralization and building around user needs.
He criticized several existing issues in the current ecosystem, including second-layer solutions with instant upgrade ‘backdoors’, suspiciously designed decentralized exchanges, and decentralized application front ends that are vulnerable to server-side attacks.
Proposed three major testing standards to examine true decentralization
To ensure that cryptocurrency projects truly achieve decentralization, Vitalik proposed three practical testing standards.
Source: Vitalik Buterin proposed three practical testing standards to ensure that cryptocurrency projects truly achieve decentralization.
First is the ‘leave the test’: If the company behind the application disappears, can users still retain their assets?
Second is the ‘internal attack test’: How much damage can malicious insiders or compromised front ends cause?
Third is the ‘trusted computing foundation test’: How much code needs to be trusted to protect users' funds or data?
He warned that too many second-layer networks, DeFi projects, and ‘decentralized’ front ends rely on hidden backdoors, instant upgrade buttons, or insecure interfaces. As a practical solution, he advocated for immutable front end hosting through static HTML on IPFS.
Vitalik also warned against superficial fixes in privacy and governance, stressing: ‘Consider privacy as a feature to be added, not a mistake to be reduced.’
Criticizing the closed model, calling for a return to the open original intention
In his speech, Vitalik compared the trends in the cryptocurrency industry with those in the tech industry, particularly mentioning the Android system. While Android brought Linux to the masses, he questioned whether it truly empowered users. He pointed out: ‘The default Android phones come with a bunch of spyware... this is a very mixed ecosystem.’
He emphasized that cryptocurrency should not follow the same path, and that open source, anti-censorship, and user freedom should not be optional. Vitalik clearly stated: ‘We do not need to be like OpenAI.’ This statement implies criticism of OpenAI's shift from openness to closure.
As Ethereum's blockchain approaches its 10th anniversary, Vitalik urges cryptocurrency builders to return to first principles: freedom, resilience, and meaningful decentralization. He warns: ‘If we lose these, Ethereum will inevitably become just another generational thing, and will inevitably fade away like many other things.’ This statement highlights his urgency in maintaining Ethereum's core values and his deep concern for the development direction of the entire cryptocurrency industry.
Further reading
Pump assistance group? The Ethereum Community Foundation has been established, aiming to push ETH to 10,000 dollars!
10th Anniversary of the Genesis Block! Ethereum will upload a time capsule to the chain, allowing the global community to share blockchain memories.
Stop fantasizing about coin prices! Unraveling the myth of Ethereum identity: What is the true value of ‘the second brother’?
‘V God: The industry has grown up! Decentralization cannot just be a slogan, don't take the closed path of OpenAI’ This article was first published in ‘Crypto City’
