Eli Ben-Sasson argues that centralized “corpo chains” will fail long term unless they adopt crypto’s decentralization ethos.
Corporate Blockchains and the Decentralization Dilemma
Corporate-controlled blockchains — often called “corpo chains” — may be doomed to fail unless they align with the core principles of decentralization, according to Eli Ben-Sasson, co-founder and CEO of StarkWare, a blockchain scaling firm.
In a detailed post on X, Ben-Sasson reiterated that the true value of blockchain lies in eliminating central entities, not reinforcing them. “The important element of blockchain is a system that gets rid of a central entity,” he explained, emphasizing that this vision comes at a technical cost. “It’s a very complex technology that’s hard to build and hard to use.”
He noted that even with tools like account abstraction (AA) — which simplifies user experience by removing the need for traditional private keys — the core technology remains intricate.
Why Corporate Chains May Struggle
Ben-Sasson acknowledged that large corporations entering the blockchain space could accelerate mainstream adoption. However, he warned that in the long run, these chains could be abandoned due to both technical and philosophical flaws.
“Fast forward a few years: corporate chains will end up with the complex tech but without the added value for users, which is no central entity to control them,” he predicted. “At that point, these chains will lose the focus from corporates.”
He also highlighted a fundamental user preference: individuals drawn to blockchain value self-custody, transparency, and independence — not corporate oversight.
Some industry participants agree that corporations don’t necessarily need blockchains, arguing they are joining the trend simply out of fear of being left behind. Others, like Rob Masiello, CEO of Sova Labs, believe corporate chains could still serve practical purposes for businesses, even if they limit public participation.
As Ben-Sasson summarized, blockchains built to maintain control rather than decentralize will eventually lose both user trust and corporate interest — proving that blockchain’s survival depends on staying true to its decentralized roots.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.