Vitalik Buterin: Why Consortium Blockchains Are Almost Complete Failures On July 20, 2024, Ethereum co-founder Vitalik Buterin (@VitalikButerin) pointed out during a speech in the Arbitrum channel that the vision of consortium blockchains (private enterprise blockchains) has largely failed. He analyzed that consortium blockchains inherit the drawbacks of both centralization and decentralization, leading latecomers to feel like they’ve joined a centralized system controlled by a monopoly alliance, without gaining the advantages of an open network or true business privacy. Vitalik believes a more reasonable compromise is to retain existing centralized servers while adding cryptographic scaffolding on top of them, submitting proofs and Merkle roots to the chain. This approach provides users with additional security guarantees without altering the existing infrastructure. Source: Arbitrum