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

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

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.

Ethereum inventor Vitalik Buterin says he's skeptical of Jack Dorsey's DeFi plans and Mark Zuckerberg's metaverse on Studio 1.0 with @emilychangtv— Bloomberg Technology (@technology) August 18, 2021

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.

Square is creating a new business (joining Seller, Cash App, & Tidal) focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services. Our primary focus is #Bitcoin. Its name is TBD.— jack⚡️ (@jack) July 15, 2021

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.