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Ethereum is Plagued by Single Points of Failure, Claims Jack Dorsey

Twitter’s co-founder and former CEO, Jack Dorsey, called out Ethereum for being insufficiently decentralized on Monday. Under one of Vitalik Buterin’s Twitter posts, he alleged the protocol has “one, if not many, single points of failure.”

Decentralization and Social Media

Vitalik’s initial tweet did not relate to Ethereum at all. Rather, the network’s founder offered his thoughts on Elon Musk’s recent $43 billion offer to completely take over Twitter. While he doesn’t oppose Elon running the show, he stood against popularizing hostile social-media takeovers in general.

Dorsey agreed, but followed by asserting that media should ideally not be under the control of any group of individuals or institutions. “It should be an open and verifiable protocol,” he said, calling everything a step in that direction.

His comments reflected those of BlockTower CIO Ari Paul days ago. Fundamentally, he claimed that Twitter will always suffer from centralization and profit motives, even under a libertarian idealist like Musk. Alternatively, he proposed that “decentralized” social media solutions would be the answer to today’s censorship issues.

Naturally, blockchain has already been a part of this conversation for years. Various crypto projects like Minds and StoryFire have been leveraging cryptocurrency to reward their users and protect free speech. As such, another of these projects – DeSo – approached Dorsey directly to fish for his support, citing their common vision.

The billionaire wasn’t one to bite, however:

“If you’re building on ETH you have at least one, if not many, single points of failure and therefore not interesting to me,” he told the project team.

Twitter CEO Jack Dorsey addresses students during a town hall at the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018.
Jack Dorsey. Source: CNBC

Calling Out Ethereum

While Dorsey has been extremely supportive of Bitcoin, he has always kept a considerable distance from other digital assets.

The CEO railed against the concept of “Web 3.0” months ago, calling projects marketed under the phrase “centralized” and VC controlled. Though refraining from getting too specific, he heavily implied that Ethereum was such a centralized entity.

Deso’s creator Nader Al-Naji replied soon after Dorsey’s tweet, clarifying that his team did not build the project on Ethereum. In fact, the team agreed that building on the network would be “impossible”, instead opting for a unique layer-1 blockchain.

Yet even this wasn’t enough for Jack. Upon hearing that DeSo was “foundation-governed” rather than a corporation, he claimed that a foundation is a “single point of failure.”

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Similarly, the Ethereum Foundation has guided Ethereum’s governance and development since its inception.

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