Ethereum co-founder Vitalik Buterin highlighted potential risks to Ethereum's decentralization if large institutions like BlackRock continue to increase their ETH holdings. Speaking at Devconnect in Buenos Aires, Buterin outlined two main concerns: the marginalization of decentralization-focused developers and community attrition, and the dominance of institutional demands on the base layer technology. He noted that such demands could lead to changes like reducing block time to around 150 milliseconds, making it difficult for ordinary users to run nodes, thus increasing geographic and network centralization.
Vitalik Buterin Warns of Centralization Risks from Institutional ETH Holdings
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