HashKey Group Chairman Dr. Xiao urges Vitalik: Ethereum Foundation Should No Longer Keep Its Distance from China

In a recent engagement at the ThreeDAO graduation event, Dr. Xiao Feng, founder of Wanxiang Blockchain and chairman of HashKey Group, delivered an impactful speech titled "Blockchain: Back to the Origin." He emphasized the importance of returning to the foundational principles of blockchain amidst emerging trends like RWA and PayFi.

Dr. Xiao shared insights from his face-to-face conversation with Ethereum co-founder Vitalik Buterin, where they discussed the crucial role of decentralization. Vitalik highlighted that while application layers cannot achieve full decentralization, Layer 1 must maintain it to reduce trust and intermediary costs, enhancing efficiency.

The Reasons Behind Vitalik’s Absence from Events in China

In an interview, Dr. Xiao candidly advised the Ethereum Foundation: "Ethereum has fallen to this point because you lost China." From 2014 to 2016, China was the most solid base of Ethereum developers and users. During that time, Vitalik would attend blockchain conferences in Shanghai every year, never missing the first seven. However, after regulatory documents were issued by seven Chinese ministries in 2017, the Foundation's lawyers, citing 'compliance risks,' established a rule prohibiting members from traveling to China. As a result, Vitalik has since been 'absent' from China, not because he is unwilling, but because he 'dares not come.'

In 2023, despite the first conference in Hong Kong, Vitalik Buterin did not attend. However, last year he agreed to participate, indicating a potential shift in engagement. Xiao Feng emphasized the importance of returning to China, highlighting that losing access to Chinese developers means losing a significant global resource. He noted that blockchain developers are primarily concentrated in the English and Chinese-speaking worlds.

Dr. Xiao Calls on Ethereum Foundation to Reconnect with China

In this interview, Xiao also questioned the Ethereum Foundation's reliance on European developers, pointing out that only a small team in Berlin handles underlying technology, which is now mostly optimized. He suggested that the Foundation establish an office in Hong Kong to reconnect with China, stressing that the legal team's lack of understanding of China might lead to misguided decisions. Xiao humorously assured Vitalik of support, underscoring respect for Ethereum's technology.

The discussions reflect a broader industry shift from infrastructure to application phases, signaling a pivotal moment for blockchain's growth. Dr. Xiao believes this transition marks not a crisis but a new phase of opportunity, where real-world applications on distributed ledger systems can solve pressing issues.

As crypto continues to integrate into real-world scenarios, Dr. Xiao's call for strategic positioning in China underscores the need for global collaboration and innovation in the blockchain space.