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Ethereum advocate warns private permissioned chains could create new silos

Etherealize CEO Vivek Raman says Ethereum’s open mainnet is positioned as a shared base for institutions that want permissioned or privacy features at higher layers.

Reported · Written up by our desk · Market Structure

CoinDesk quotes Etherealize CEO Vivek Raman as warning that a renewed push for private, permissioned consortium chains risks recreating siloed systems that blockchain was meant to connect. Raman argues that gated networks, even if appealing to institutions, can undermine interoperability and liquidity across the wider ecosystem.

Raman, whose firm says it is backed by Vitalik Buterin and the Ethereum Foundation, says Ethereum’s open mainnet can serve as a neutral base layer. He frames institutional upgrades such as permissioning or privacy-preserving features as changes that can be added at higher layers without abandoning the transparency and openness of the underlying network.

The debate, according to CoinDesk, is playing out as major firms continue to adopt closed networks while new Ethereum-linked products emerge from companies including BlackRock. CoinDesk also points to permissioned systems such as Digital Asset’s Canton Network and Circle’s stablecoin payments play ARC, plus Stripe’s Tempo blockchain, as examples of approaches that prioritize privacy and reduced counterparty risk.

Raman links the discussion to Ethereum’s role today as a settlement layer for decentralized finance and as a foundation for tokenized assets. He also compares the current “consortium chain” wave to earlier efforts that did not fully endure, citing the withdrawal of large banks from R3’s consortium in 2016 as an example of how such models can stall.

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