Ethereum co-founder Vitalik Buterin has criticized consortium blockchains, or private enterprise blockchains, as largely failures. Speaking on the Arbitrum channel, Buterin argued that these blockchains inherit the drawbacks of both centralized and decentralized systems. He noted that new participants often find themselves in a centralized system controlled by a monopolistic consortium, missing out on the benefits of open networks and true commercial privacy. Buterin suggested a more practical compromise would be to retain existing centralized servers while adding cryptographic frameworks. This approach would involve submitting proofs and Merkle roots to the blockchain, providing users with additional security without altering the existing infrastructure.