With the growing interest in cryptocurrency, there have been multiple institutions in traditional finance that have announced their own entries. Facebook and JP Morgan have been the most publicized institutions with the intentions of launching into these same kinds of ventures. Though there are many investors in the industry that see these developments as good news, its hard to ignore that the centralization will be heavy, which is far from the crypto community that was originally created.
South by Southwest 2019, a major conference that is riddled with tech events, was recently the host of a debate involving Jimmy Song. Song stated that there’s only two kinds of blockchains – the private (permissioned) and public (permissionless). He noted that there is a distinct difference between controlling your own keys and not, adding that blockchain only really benefits bitcoin, considering that a “central point of failure” exists for basically every other toted.
According to CoinDesk, Song started to bring attention to Ethereum in this topic, considering that it is entirely permissioned. He spoke on the DAO hack, specifically regarding the developers and stakeholders managed to reverse the effects through a blockchain rollback.
Decentralized: no one can take your property away.
Centralized: someone gives you permission to keep possession of said property.
That's why decentralization is binary, not a spectrum. You either have self sovereignty over your own property or you don't. There is no in between.
— Jimmy Song (송재준) (@jimmysong) March 14, 2019
While it is clear that Song won’t ever be in favor of the centralized blockchain systems that are arising, there are multiple industry insiders that have remained open to the idea. Ari Paul of BlockTower Capita, for example, does not seen the “corporatecoins” that are coming into the market as a bad thing. Even though the assets are “uninteresting” to the crypto proponents, considering their love of censorship resistance and multiple other core qualities of Bitcoin, it is obvious that the centralized options will bring in more global players for the market.
Song brought up a hypothetical situation, first noting that there is a chance that about 30 million users of the Facebook coin could end up “stumbl[ing] across Bitcoin” at some point in their life. As such, the community of the decentralized cryptocurrency would end up doubling, which could increase adoption and increase the value of BTC, inadvertently.