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Ethereum core developer Peter Szilagyi has criticized the blockchain’s centralized nature and related administrative issues. This follows growing concerns from industry experts about the Ethereum Foundation’s internal operations amid last year’s funding scandal. However, the network has recorded massive adoption in the last 12 months as mainstream finance leans towards the industry. 

In a letter revealed to the community, the core developer revealed several reasons why “Ethereum failed him” despite working over the years. He criticized the influence of the high rollers around the network, pointing to increased centralization against the core values. In his view, Vitalik Buterin became a victim of his success, being at the center of everything about the projects. 

This led to the Vitalik-centric approach because his opinions influenced what was permitted, the direction of the ecosystem. Furthermore, research, brainpower, and donations also contributed to the growing centralized nature. At the moment, this approach has created a small cabal of 5-10 people around Vitalik that determines what becomes successful. 

“The issue at this point isn’t even Vitalik, but rather that we now do have a “ruling elite” of Ethereum. New projects do not do public offerings anymore; they reach out to the same 5-10 people for initial investment or advisorship roles. Everyone realized that if you can get Bankless to invest, they’ll sing odes on their podcast. If you can get researchers as advisors, you both solve hard problems, but also reduce perceived friction with the Ethereum mainnet,” he added. 

Previously, the early founders backed the decentralized dream before conference attendees began the pro-Vitalik approach. This has sparked stirs around digital asset circles with industry leaders pledging to return to decentralized ideals. Several analysts have also suggested that users have more trust in these systems over the traditional model. 

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A similar issue arose when the network transitioned to a proof-of-stake (PoS) mechanism after the merge. There were growing centralization concerns due to the staking cost. However, positives were pitched for the event, and more devs doubled down on the network. Ethereum remains the largest smart contract blockchain with growing decentralized finance (DeFi) activities.

The platform’s native token, Ether, has also recorded significant success in the same period, attracting bullish investors. Despite the criticisms, Szilagyi heaped praise on the platform for being a positive force in the world, having had a major impact on traditional finance.