Stripe and Paradigm plan to launch Tempo, a new L1 blockchain aimed at scalable stablecoin payments. Unlike Ethereum, Tempo will be permissionless from day one, allowing anyone to deploy tokens and transact. Initial validators will be permissioned, but the goal is to decentralize further. The focus on L1 over L2 is driven by the need for trust among global partners and a neutral validation process. Critics have raised concerns over Tempo's reliance on a corporate structure, reminiscent of Facebook’s Libra, questioning its neutrality and long-term viability. Supporters argue it can provide essential features that Ethereum needs, like rapid finality and improved user experience. The launch of Tempo is seen as both a potential threat and a catalyst for Ethereum, pushing for faster developments in existing blockchain frameworks. Industry figures speculate that the outcome of this competition will significantly impact the blockchain ecosystem.

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