{"id":34863,"date":"2025-07-02T18:17:13","date_gmt":"2025-07-02T18:17:13","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=34863"},"modified":"2025-07-02T18:17:13","modified_gmt":"2025-07-02T18:17:13","slug":"the-protocol-ethereums-vitalik-buterin-says-the-ecosystem-is-at-risk-if-decentralization-is-just-a-catchphrase","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=34863","title":{"rendered":"The Protocol: Ethereum\u2019s Vitalik Buterin Says the Ecosystem Is At Risk If Decentralization Is Just a Catchphrase"},"content":{"rendered":"<div>\n<p>Welcome to The Protocol, CoinDesk&#8217;s weekly wrap-up of the most important stories in cryptocurrency tech development. I&#8217;m Margaux Nijkerk, CoinDesk\u2019s Tech &amp; Protocols reporter.<\/p>\n<p>In this issue:<\/p>\n<ul>\n<li>Vitalik Buterin: Ethereum at Risk If Decentralization Is Just a Catchphrase<\/li>\n<li>Bitcoin Layer-2 Botanix Mainnet Debuts, Cuts Block Times to 5 Seconds<\/li>\n<li>XRPL EVM Sidechain Goes Live, Unlocking Ethereum Dapps in XRP Ecosystem<\/li>\n<li>Securitize, RedStone Pilot \u2018Trusted Single Source Oracle\u2019 to Secure Tokenized Fund NAVs<\/li>\n<\/ul>\n<div style=\"display:none\">Unknown block type &#8220;divider&#8221;, specify a component for it in the `components.types` option<\/div>\n<h3><strong>Network News<\/strong><\/h3>\n<p><strong>BUTERIN: CRYPTO MUST MATURE:<\/strong> Ethereum co-founder Vitalik Buterin wants the crypto industry to grow up fast \u2014 stressing that the industry is at an \u201cinflection point.\u201d Speaking <a href=\"https:\/\/www.youtube.com\/watch?app=desktop&amp;v=zo72TWXrc3Y\">in front of a packed room<\/a> at the Ethereum Community Conference, in Cannes, France, Buterin used his keynote to deliver a clear-eyed reality check: decentralization, he argued, must evolve from a catchphrase to a concrete set of user guarantees \u2014 or risk becoming another hollow promise. As the industry has gone mainstream with endorsements from major corporations and political figures, builders need to return to the ecosystem\u2019s key ideals surrounding decentralization and building for users&#8217; needs, Buterin said. In his typical jeans and relaxed dark t-shirt uniform, Buterin laid out practical \u201ctests\u201d that he said every crypto project should pass. These include 1) the walk-away test. If the company behind an application disappears, do users keep their assets? And 2) the insider attack test: How much damage can rogue insiders or compromised front-ends cause? And 3) whether it has a trusted computing base: How many lines of code must be trusted to protect users\u2019 funds or data? He warned that too many layer-2 networks, DeFi projects and \u201cdecentralized\u201d front-ends rely on hidden backdoors, instant upgrade buttons or insecure interfaces that can be tampered with and hacked. \u2014 <em>Margaux Nijkerk <\/em><a href=\"https:\/\/www.coindesk.com\/tech\/2025\/07\/02\/vitalik-buterin-ethereum-at-risk-if-decentralization-is-just-a-catchphrase\">Read more<\/a>.<\/p>\n<p><strong>BITCOIN LAYER-2 BOTANIX GOES LIVE:<\/strong> The mainnet of Botanix, a network designed to bring Ethereum-equivalent utility to the Bitcoin ecosystem, has gone live, slashing the time it takes to add new blocks to five seconds from 10 minutes. The network is compatible with the Ethereum Virtual Machine (EVM), the software that powers the Ethereum blockchain, allowing Ethereum-based applications and smart contracts to be copied and pasted onto Bitcoin, developer Botanix Labs said in an email. Botanix is one of several projects attempting to scale the Bitcoin blockchain and make it a more conducive venue for <a href=\"https:\/\/www.coindesk.com\/learn\/what-is-defi\/\">decentralized finance<\/a> (DeFi) by enhancing its utility and programmability. Others include Rootstock, Stacks and BOB (&#8220;Build on Bitcoin&#8221;), which have all adopted the <a href=\"https:\/\/www.coindesk.com\/tech\/2024\/12\/10\/robin-linus-scaling-crypto-s-premier-network\">BitVM computing paradigm<\/a> that can make complex computations verifiable on Bitcoin, paving the way for smart-contract provision, similar to Ethereum&#8217;s. The expansion of Bitcoin&#8217;s utility would allow developers to take advantage of the value held in BTC, which <a href=\"https:\/\/www.tradingview.com\/symbols\/BTC.D\/\">dwarfs that of all other digital assets<\/a>. \u2014 <em>Jamie Crawley<\/em> <a href=\"https:\/\/www.coindesk.com\/tech\/2025\/07\/01\/bitcoin-layer-2-botanix-mainnet-debuts-cuts-block-times-to-5-seconds\">Read more<\/a>.<\/p>\n<p><strong>XRP LEDGER EVM-SIDECHAIN MAINNET LAUNCHES<\/strong>: Ripple officially introduced the XRP Ledger&#8217;s Ethereum Virtual Machine (EVM) sidechain to the mainnet in an bid to improve the ecosystem&#8217;s interoperability and allow developers to deploy their Ethereum-based <a href=\"https:\/\/www.coindesk.com\/learn\/what-is-a-dapp-decentralized-apps-explained\/\">decentralized applications<\/a> (dapps) with the XRPL. The development adds EVM-compatible <a href=\"https:\/\/ripple.com\/insights\/xrpl-evm-sidechain-mainnet-is-live\/\">smart contracts while maintaining a connection to the XRPL<\/a>, giving developers access to the ecosystem at a low cost, Ripple said in a blog post. It is designed to eliminate the trade-off between EVM compatibility and XRPL\u2019s own advantages, opening the door for dapps to lean into XRP\u2019s payments infrastructure. The sidechain operates as a separate blockchain that is parallel and connected to the XRP Ledger over the Axelar bridge, an interoperability protocol. XRPL\u2019s native token, XRP, will serve as the native gas token for the sidechain. \u2014 <em>Margaux Nijkerk<\/em> <a href=\"https:\/\/www.coindesk.com\/tech\/2025\/06\/30\/xrpl-evm-sidechain-goes-live-unlocking-ethereum-dapps-in-xrp-ecosystem\">Read more<\/a>.<\/p>\n<p><strong>SECURITIZE, REDSTONE RELEASE NEW ORACLE MODEL WHITEPAPER:<\/strong> Securitize, one of the largest tokenized asset issuers, and oracle provider RedStone have released a whitepaper they say introduces a new model for securely verifying Net Asset Value (NAV) data on-chain, tailored specifically for tokenized private funds. The model, dubbed the Trusted Single Source Oracle (TSSO), is designed to address a key gap in decentralized finance (DeFi) infrastructure: how to reliably prove that each NAV update really comes from the trusted source \u2014 and hasn\u2019t been tampered with once it\u2019s on-chain. In traditional crypto markets, oracles pull data from multiple price feeds to guard against manipulation or errors. But for private funds, the NAV is calculated by a single fund administrator. That creates a unique problem: there\u2019s no way to double-check the number through market aggregation. For DeFi protocols that rely on accurate collateral values, this single point of trust has been a sticking point. The TSSO framework solves this by creating a cryptographically linked chain of NAV updates, according to the whitepaper. Each update includes a secure digital signature, a timestamp, a reference to the previous record, and a hash that locks the sequence together. The system uses two keys: a cold-stored \u201croot key\u201d for major updates and a \u201cchain key\u201d for small, routine changes that stay within tight thresholds. This design aims to balance high security with the practical need to refresh NAV data without constant manual work. \u2014 <em>Margaux Nijkerk<\/em> <a href=\"https:\/\/www.coindesk.com\/tech\/2025\/07\/01\/securitize-redstone-pilot-trusted-single-source-oracle-to-secure-tokenized-fund-navs\">Read more<\/a>.<\/p>\n<div style=\"display:none\">Unknown block type &#8220;divider&#8221;, specify a component for it in the `components.types` option<\/div>\n<h3><strong>In Other News<\/strong><\/h3>\n<ul>\n<li>Digital brokerage Robinhood (HOOD) has a slate of new crypto offerings, including its own blockchain network based on Arbitrum and tokenized stock trading. The firm this week debuted its stock token offering, issued on the Ethereum layer-2 Arbitrum, for European users, giving access to over 200 U.S. equities and ETFs with around-the-clock trading during weekdays. With the launch, Robinhood is expanding its crypto-focused EU app with tokenized stocks into an &#8220;all-in-one investment app powered by crypto,&#8221; the company said. The firm also confirmed it\u2019s building its own layer-2 blockchain network optimized for tokenized assets. The chain will support 24\/7 trading, self-custody and cross-chain bridging of tokenized assets. A release date has not been disclosed, but persons familiar with the matter said it could go live later this year or early next year. \u2014 <em>Krisztian Sandor<\/em>\u00a0<a href=\"https:\/\/www.coindesk.com\/business\/2025\/06\/30\/robinhood-pushes-deeper-into-crypto-with-own-blockchain-tokenized-stock-launch\">Read more<\/a>.<\/li>\n<li>Deutsche Bank (DB) is planning to debut a crypto custody service next year, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-07-01\/deutsche-bank-aims-to-launch-crypto-custody-service-in-2026\">Bloomberg first reported<\/a>. Germany&#8217;s largest bank has enlisted cryptocurrency exchange Bitpanda to help build the offering, according to the report, citing people familiar with the matter. DB&#8217;s involvement in crypto custody to now has been largely through Swiss custodian Taurus, of which the bank is both an <a href=\"https:\/\/www.coindesk.com\/business\/2023\/02\/14\/digital-asset-infrastructure-provider-taurus-raises-65m-from-credit-suisse-deutsche-bank\">investor<\/a> and a <a href=\"https:\/\/www.coindesk.com\/business\/2025\/06\/26\/crypto-custodian-taurus-launches-first-stablecoin-contract-with-privacy-features\">client<\/a>. It is not clear how this relationship would develop should DB begin its own service in-house. The bank&#8217;s other recent crypto initiatives have been concentrated in stablecoins, with its asset management subsidiary <a href=\"https:\/\/www.coindesk.com\/business\/2025\/07\/02\/deutsche-bank-s-dws-galaxy-flow-traders-venture-introduces-german-regulated-stablecoin\">DWS planning to issue a euro stablecoin<\/a> as part of a joint venture with Flow Traders and Galaxy (GLXY). \u2014 <em>Jamie Crawley<\/em> <a href=\"https:\/\/www.coindesk.com\/business\/2025\/07\/02\/deutsche-bank-plans-to-introduce-crypto-custody-with-bitpanda-next-year-bloomberg\">Read more<\/a>.<\/li>\n<\/ul>\n<div style=\"display:none\">Unknown block type &#8220;divider&#8221;, specify a component for it in the `components.types` option<\/div>\n<h3><strong>Regulatory and Policy<\/strong><\/h3>\n<ul>\n<li>With the U.S. Senate&#8217;s passage of the bill meant to carry forward the bulk of President Donald Trump&#8217;s policy agenda, last-minute changes to the <a href=\"https:\/\/www.congress.gov\/bill\/119th-congress\/house-bill\/1\/all-actions\">One Big Beautiful Bill<\/a> didn&#8217;t include a proposal to clarify and ease crypto taxation. Though Senator Cynthia Lummis had <a href=\"https:\/\/www.coindesk.com\/policy\/2025\/06\/30\/senator-seeks-to-waive-us-taxes-on-small-scale-crypto-activity-in-big-budget-bill\">advocated changes<\/a> to the U.S. approach to taxing cryptocurrency transactions, including waiving capital-gains taxes on small-scale activity, it wasn&#8217;t among the amendments to the bill that narrowly passed on a 50-50 vote on Tuesday in which Vice President J.D. Vance had to step in to break the tie. Senators had worked through the night Tuesday debating amendment after amendment, most of which failed, on their way toward a Republican success. But Lummis&#8217; amendment wasn&#8217;t among them, despite 11th-hour lobbying efforts from the digital assets industry. \u2014 <em>Jesse Hamilton <\/em><a href=\"https:\/\/www.coindesk.com\/policy\/2025\/07\/01\/congress-budget-bill-advances-from-senate-without-crypto-tax-provision\">Read more<\/a>.<\/li>\n<li>New York Attorney General Letitia James sounded the alarm on the U.S. Senate\u2019s stablecoin bill, warning Congress on June 30 that GENIUS Act \u2014 at least as it currently stands \u2014 \u201cdo[es] not contain the necessary guardrails to protect the American public.\u201d In an eight-page letter, James urged Congress to slow down its efforts to pass stablecoin legislation and \u201ctake the time necessary to draft legislation that will enhance innovation while protecting our banking system that is the envy of the world.\u201d\u2014 <em>Cheyenne Ligon <\/em><a href=\"https:\/\/www.coindesk.com\/policy\/2025\/07\/01\/genius-act-lacks-necessary-guardrails-for-investor-protection-nyag-letitia-james-tells-congress\">Read more<\/a>.<\/li>\n<\/ul>\n<div style=\"display:none\">Unknown block type &#8220;divider&#8221;, specify a component for it in the `components.types` option<\/div>\n<h3><strong>Calendar<\/strong><\/h3>\n<ul>\n<li>June 30-July 3: <a href=\"https:\/\/ethcc.io\/\">EthCC<\/a>, Cannes<\/li>\n<li>July 16-18: <a href=\"https:\/\/web3summit.com\/\">Web3 Summit<\/a>, Berlin<\/li>\n<li>Sept. 22-28: <a href=\"https:\/\/koreablockchainweek.com\/\">Korea Blockchain Week<\/a>, Seoul<\/li>\n<li>Oct. 1-2: <a href=\"https:\/\/www.token2049.com\/?ref=fintechlabs.com\">Token2049<\/a>, Singapore<\/li>\n<li>Nov. 17-22: <a href=\"https:\/\/devconnect.org\/\">Devconnect<\/a>, Buenos Aires<\/li>\n<li>Dec. 11-13: <a href=\"https:\/\/solana.com\/breakpoint\">Solana Breakpoint<\/a>, Abu Dhabi<\/li>\n<li>Feb. 10-12, 2026: <a href=\"https:\/\/consensus-hongkong.coindesk.com\/\">Consensus<\/a>, Hong Kong<\/li>\n<li>May 5-7, 2026: <a href=\"https:\/\/consensus.coindesk.com\/\">Consensus<\/a>, Miami<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Welcome to The Protocol, CoinDesk&#8217;s weekly wrap-up of the most important stories in cryptocurrency tech development. I&#8217;m Margaux Nijkerk, CoinDesk\u2019s Tech &amp; Protocols reporter. In this issue: Vitalik Buterin: Ethereum at Risk If Decentralization Is Just a Catchphrase Bitcoin Layer-2 Botanix Mainnet Debuts, Cuts Block Times to 5 Seconds XRPL EVM Sidechain Goes Live, Unlocking [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-34863","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/34863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34863"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/34863\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}