Vitalik Buterin Casts Doubts Over Jack Dorsey’s Bitcoin ‘Defi’ Plan

By Prashant Jha
Published August 19, 2021 Updated August 19, 2021
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Vitalik Buterin Casts Doubts Over Jack Dorsey’s Bitcoin ‘Defi’ Plan

By Prashant Jha
Published August 19, 2021 Updated August 19, 2021

Vitalik Buterin, the co-founder of Ethereum blockchain recently appeared on Bloomberg to express his views on the upcoming ETH 2.0 upgrade and answered questions on Jack Dorsey’s Bitcoin Defi Plans and Mark Zuckerberg’s metaverse on Studio 1.0 as well.

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Buterin said Dorsey’s plan of creating a defi like ecosystem on Bitcoin could backfire as it doesn’t have the necessary functionalities to support it. He went onto claim that Dorsey might have to create a new ecosystem from the scratch saying he is very skeptical of it. He said,

“I am skeptical about Decentralized Finance on top of Bitcoin as Ethereum has native functionalities such as smart contracts that support different anomalies of Defi. Bitcoin doesn’t have those native functionalities and thus Dorsey would have to build a new system to incorporate those… and even if he is able to do that the trust level would be very weak.”

Buterin went on to discuss Facebook’s Metaverse Studio 1.0 plans and claimed the trust would be the biggest hurdle for the company to overcome. He highlighted how Zukerberg tried creating a crypto consortium with its Libra project but failed, so we would have to wait to see how this Metaverse plan expands and turns into.

Can Buterin’s Comment Brew a Rivalry With Jack Dorsey?

Jack Dorsey is one of the ardent Bitcoin proponents in the market today and leaves no opportunity to indicate Bitcoin is the only future. He has even claimed that he would leave Twitter and Square if it comes to that to dedicate 100% of his time to Bitcoin. He is often seen trolling Ethereum proponents as well. Once when the hype around ETH 2.0 was high and Proof-of-work mining was being looked down upon, Dorsey made it clear PoW is truly decentralized and more secure than Proof-of-Stake.  The recent comments made by Vitalik could brew a potential rivalry between the two.

Dorsey announced his plans of building a Defi-like ecosystem on top of Bitcoin the last month, after announcing his company Square’s plans for developing a Bitcoin hardware wallet. Dorsey has maintained that everything done by his company will be open-source.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
991 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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