At Convergence 2025, Vitalik Buterin raised critical issues regarding centralization that continue to threaten the foundation of modern cryptocurrency projects. The founder of Ethereum highlighted the dangers when projects begin to sacrifice open-source principles for short-term efficiency or practicality.
The Threat of Compromising Decentralization
According to an analysis reported by NS3.AI, Buterin explained that the integration of closed server components and centralized systems can gradually erode the core values that distinguish cryptocurrency from traditional systems. Centralization in technical infrastructure is not merely a philosophical issue but a concrete threat to protocol integrity.
Why Transparency and Centralized Control Matter
When centralization becomes the norm, the risk of power concentration in a handful of interest groups becomes unavoidable. Buterin warned that this trend could make projects vulnerable to takeover by parties with hidden agendas. The loss of transparency opens the door to manipulation and moves the ecosystem away from its original mission.
The message from this industry figure serves as an important reminder that maintaining true decentralization is non-negotiable in building sustainable cryptocurrency protocols.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Vitalik Buterin Warns of Centralization Risks in the Crypto Ecosystem
At Convergence 2025, Vitalik Buterin raised critical issues regarding centralization that continue to threaten the foundation of modern cryptocurrency projects. The founder of Ethereum highlighted the dangers when projects begin to sacrifice open-source principles for short-term efficiency or practicality.
The Threat of Compromising Decentralization
According to an analysis reported by NS3.AI, Buterin explained that the integration of closed server components and centralized systems can gradually erode the core values that distinguish cryptocurrency from traditional systems. Centralization in technical infrastructure is not merely a philosophical issue but a concrete threat to protocol integrity.
Why Transparency and Centralized Control Matter
When centralization becomes the norm, the risk of power concentration in a handful of interest groups becomes unavoidable. Buterin warned that this trend could make projects vulnerable to takeover by parties with hidden agendas. The loss of transparency opens the door to manipulation and moves the ecosystem away from its original mission.
The message from this industry figure serves as an important reminder that maintaining true decentralization is non-negotiable in building sustainable cryptocurrency protocols.