Co-founder of Ethereum, Vitalik Buterin, highlighted major threats to decentralization in the crypto industry during his speech at a conference in Cannes.
Decentralization Test Criteria
Buterin outlined three tests that crypto projects must pass to demonstrate their decentralization. The first is the so-called walk-away test, which ensures that users can continue to access their resources if the project team goes missing. The second is the insider attack test, which reveals how much control developers or insiders may retain, even in supposedly decentralized systems. The third is the 'trusted computing base test,' which assesses how much code users need to trust, as smaller codebases reduce the attack surface and ease auditing.
Criticism of Centralized Components
Buterin criticized many layer-2 networks and DeFi platforms for relying on secret upgrade paths and insecure user interfaces. He argued that these hidden controls render user assets vulnerable, creating single points of failure that could be exploited by attackers. He also pointed out privacy issues, stating that technologies such as zero-knowledge proofs do not provide complete security as long as users depend on centralized authentication systems.
Conclusions and Recommendations by Buterin
In conclusion, Buterin urged the community to focus again on building self-sustaining systems to counter internal threats. He expressed concerns that Ethereum technology might become obsolete due to undetected structural flaws if current trends persist. Buterin strongly advised developers not to rely on trusted intermediaries and to streamline code to maintain true decentralization.
Vitalik Buterin's address at the conference underscores the significance of genuine decentralization in the crypto industry and the need for vigilance among developers.
