What happened?
Stellar Development Foundation CEO Denelle Dixon published an essay warning that the blockchain industry risks repeating 19th-century railroad monopolies if private companies build closed, vertically integrated networks. She compared proprietary blockchains and stablecoin projects from big finance and payment firms to past tech and transport monopolies and argued that these closed rails could let a few players control fees, access and data. Dixon urged builders and policymakers to choose open, permissionless infrastructure like Stellar before those choices lock in concentrated control.
Who does this affect?
This affects developers, startups and users who depend on blockchain infrastructure, as well as large financial and payment firms building their own chains. Small businesses and people using cross-border payments and remittances could face higher costs and limited options if a few networks dominate. Investors, regulators and the broader crypto ecosystem are also impacted because infrastructure design determines who earns fees, who gets access, and how resilient the system is.
Why does this matter?
If a small number of private networks control core blockchain rails, markets could see less competition, higher transaction costs and slower innovation, which would hurt liquidity and raise service prices. Concentrated infrastructure also creates systemic risk — problems or policy changes at a dominant provider could cascade through payments, stablecoins and DeFi. Keeping rails open and interoperable helps preserve competitive pricing, broader market access and healthier long-term growth for crypto and financial markets.