Ethereum Will Tear Down Centralized Trust Walls, Become Global Settlement Layer

One of the original co-founders of Ethereum, Joseph Lubin, which is also the founder of the ETH-based ConsenSys, has recently made a memorable speech at the Deconomy conference. According to him, Ethereum is a huge global settlement layer that will bring down all the “walled gardens”.

He criticized the centralized industries and their reliance on a “centralized trust”, which he believes that are a problem because some intermediaries use them to receive too much of the value of each transaction. He affirmed that Ethereum will bring a new revolution that will change all this.

As you may know, the blockchain is the perfect tool for decentralization. The settlement of business transactions and stocks is still heavily centralized today and the companies providing these services are getting all the profit. With this technology, new platforms which will have more freedom are ready to be created.

What Lubin criticized at Deconomy was the fact that we do not really have a global economy. What we have, instead, is “a network of walled gardens”. All companies serve their jurisdictions following their specific rules and they cross several walled gardens to be able to connect with each other.

Lubin wants to tear all that down. None of the many companies which are offering settlement services are good, in his opinion. According to him, payment companies like Ebay, Visa, PayPal and services like Google Play, App Store, they are all platforms which are focused on their own profit.

None of them are really good for the consumer because they limit their freedom and their choices in order to protect their power and profits. According to the innovator, even service providers suffer from this kind of industry, which gets most of the profit created by them while they get almost nothing.

Now, with the blockchain, developers, for instance, can create their products using a permissionless ledger, they do not need to work for these companies anymore and this is empowering. He also cited game networks in which console wars and other issues caused developers to lose their jobs or to have several limitations.

Lubin wants a revolution. He wants the developers to have power over their own work. The consumers to have the choice. With Ethereum, you can create your own solutions, get freedom and you do not need to trust a centralized company for that. The network is fully trustless and let people architect their own ways to use it.

Bashing Centralized Blockchains

The developer has also taken his time to bash some networks lie IBM Fabric, R3’s Corda and EOS. According to him, none of them is really decentralized. While these companies may claim that decentralization is a very important value for them, the truth is that they are entrepreneurial solutions that still have most of the centralized issues.

EOS, for instance, is controlled by only 21 validators. This is a very high degree of centralization hidden in a discourse about how decentralization is powerful.

These companies, he defends, can censor if they wish. They are no better than governments, in his opinion, since they hold the power to do as they wish because they, and not the individual, have the power.

While Block Producers can be voted out of their position if they are discovered to be colluding, the truth is that this is not always transparent. Politicians can also be “fired” if they are corrupt, but this often do not happen because the people who are in power hold influence to hide their crimes.

Ethereum Is The Future

Lubin finished his discourse by praising Ethereum-based solutions (as it was expected). For instance, he complimented Parity for having a “very strong team” and talked about how it has the potential to be a good scaling solution that will connect ETH to other networks like a bridge.

He also noted how there is a system for the community to whitelist and blacklist any parachain (chain connected to Polkadot and ETH) from the system, which puts the power in the hands of the users. The community and no centralized authority will define how this will work.

Other companies cited by Lubin included Cosmos and Dfinity. Cosmos is focused on enabling different sovereign platforms to work side by side and work as a layer 2 solution. Dfinity, which also has its team praised, but it was said that it was not an open protocol yet, despite the fact that this may change in the future.

However, he was not so confident in Cosmos and Dfinity as he seemed to be with Parity. In the end, he said that only Ethereum could be a trust layer to connect the word.

Crypto Destroyer

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