Home Coins Blockchain Bitcoin Ethereum How to Mining NFT Press releases Regulation Most Featured Guides Top Stories Finance Investment Mortgage
Coins by Cryptorank

Edward Snowden Highlights the Need for Decentralization to Counter VC Influence

Author Avatar
By Temitope Akinloye - - 5 Mins Read
Edward Snowden
Edward Snowden | Reddit

Edward Snowden, a prominent advocate for privacy, recently emphasized the need for decentralization in the tech space to reduce the control exerted by venture capital (VC) investors. During a recent appearance at NEAR’s Redacted conference in Bangkok, Snowden highlighted how large VC investments can undermine the fundamental principles of decentralized projects.

Venture Capital Influence and Decentralization

Snowden criticized venture capital's growing influence, especially in blockchain ecosystems. Solana, which has gained considerable traction as a high-performance blockchain, became a primary example in Snowden’s critique. 

Snowden referred to Solana as being “born in prison” due to its reliance on significant VC backing, which could limit its potential to fully embrace decentralization. By allowing a select few to exert control over major blockchain projects, he argued, we risk mirroring the same centralized systems that blockchain technology was initially designed to counter. 

According to Snowden, heavy VC funding often compromises blockchain projects’ independence by giving large stakeholders, typically VCs, disproportionate control. This concentration of power can shape project decisions in ways that may conflict with the decentralized nature of blockchain, as VCs often prioritize profit over principles.

Open-Source AI and the Battle Against Surveillance

Another essential aspect of Snowden's call for decentralization involved AI, particularly open-source AI. AI technology, while promising, has raised concerns over mass surveillance capabilities. Snowden has long been vocal about the dangers of AI in state and corporate surveillance, arguing that its data-processing power could enable invasive monitoring. 

He warned that AI, when controlled by centralized bodies, enables powerful systems to “train on everything,” which allows entities to collect and analyze unprecedented amounts of personal data, potentially violating privacy rights.

To combat this trend, Snowden champions open-source AI as a solution. Unlike proprietary software that can be controlled and manipulated by corporations, open-source AI offers transparency, fostering innovation while keeping surveillance in check. 

How Blockchain Can Support a Decentralized Future

Snowden’s advocacy for decentralization aligns with blockchain’s core philosophy. Blockchain networks like Bitcoin and Ethereum, which are less reliant on concentrated VC investment, have demonstrated greater resilience and independence over the years. 

Conversely, as Snowden pointed out, when projects depend on VC funds, their paths often align with the goals of those investors, which might not always prioritize decentralization or the community’s best interests. He urged developers to seek alternative funding mechanisms and consider community-focused approaches, such as decentralized autonomous organizations (DAOs), to preserve blockchain’s vision.

In addition, Snowden's comments highlight the growing trend of VC-backed blockchain initiatives, which, while initially beneficial for funding and growth, might compromise the values these projects claim to uphold. In other cases, large investors, including venture capital firms like Andreessen Horowitz, have faced criticism for disproportionately influencing governance votes in decentralized finance (DeFi) protocols. 

Snowden sees this as a deviation from blockchain’s intended purpose and an area requiring urgent reform.

Conclusion

Snowden's call to action stresses the importance of preserving the autonomy and integrity of decentralized technologies. Blockchain projects must carefully navigate funding structures to stay true to their decentralized vision. Also, AI technology needs to shift toward open-source solutions that safeguard privacy and public trust.

Share