Ethereum’s Vitalik Buterin is skeptical of Jack Dorsey’s Bitcoin DeFi business: “It will end up being a much weaker model”

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What Happened: Vitalik Buterin, known for his role in creating Ethereum (CRYPTO: ETH), isn’t convinced by Jack Dorsey’s plans to build DeFi on Bitcoin (CRYPTO: BTC).

In an interview with Bloomberg, Buterin said, “I am skeptical of these decentralized financings in addition to Bitcoin-like projects.”

Last month, Dorsey unveiled a new project developed by his digital payment company, Square (NYSE: SQ).

Its main goal would be to facilitate the creation of non-custodial, unauthorized and decentralized financial services, except that instead of relying on the Ethereum blockchain, Dorsey intends to create a fintech platform on the Bitcoin network.

However, speaking to Bloomberg, Buterin cited Bitcoin’s innate lack of functionality as a challenge to really achieve this.

“On Ethereum, there is a native feature that basically allows you to put ETH or Ethereum based assets directly into those smart contracts, into those lock boxes, where then there are arbitrary terms that can govern how those assets are. released, “Buterin said.

“Jack is basically going to have to create his own system that enforces these rules. “

Buterin also noted that while it may sound similar, it will end up being something with a “much weaker trust pattern.”

“There are technical limits to the possibility of grafting new functionality onto a system that is not powerful enough to support this new functionality,” he said.

Last week, Dorsey himself appeared to be trolling a few members of the Ethereum community. Twitter Inc (NASDAQ: TWTR) posted a series of tweets in which it appeared to indicate “Ethereum is a scam.”

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