Amazon Web Services’ (AWS) recent outage, which knocked major crypto- and fintech platforms including Coinbase MetaMask Venmo and Robinhood offline, reignited the debate on how decentralized Web3 is.
As blockchains produced blocks without interruption, millions of users could not access their wallets, exchanges or decentralized applications (DApps) Because their interfaces are application programming interfaces (APIs) They were all hosted centrally.
“Decentralization has succeeded at the ledger layer but not yet at the infrastructure layer,” Jamie Elkaleh is the chief marketing officer of Bitget Wallet. He spoke to Cointelegraph. “Real resilience depends on diversifying beyond hyperscalers into community-driven and distributed networks.”
Elkaleh also added that complete decentralization “isn’t yet feasible at scale” Because most teams depend on hyperscalers such as AWS, Google Cloud, and Azure to ensure compliance, uptime, and speed. According to him, the goal of practicality should be “credible multi-home” Distribute workloads over cloud networks and decentralized network to eliminate single points failure.
Elkaleh claimed that cloud services offer security and scaling, but with a cost. “If one region or provider goes down, hundreds of apps are affected,” he added. The next step is hybrid systems that combine cloud storage with community nodes and decentralized storage.
Related: Amazon AWS Outage Hits Coinbase Mobile App, Robinhood
Blockchains are not accessible to users
Anthurine Zhang, founder of EthStorage, QuarkChain and EthStorage, stated that the outage was proof that “even in Web3, many services still depend heavily on centralized infrastructure.”
She explains that decentralization is not possible if you only use one service provider. “It’s like the house is fine, but the door is jammed,” Xiang described how the users are locked out from working blockchains.
The outage started on Monday, and it lasted roughly 15 hours. The outage occurred Coinbase’s app and Base network to crashRobinhood users reported that the API was not working properly, and it prevented them from making any transactions or logging into their accounts.
MetaMask was also affected by the outage, and users have reported seeing zero balances on their wallets. “Their assets were safe, but the service responsible for retrieving balance data had gone offline,” Xiang explained that the problem was not a blockchain failure.
Jawad Ashraf is the CEO of Vanar Blockchain and has criticized crypto for everything. “running on the same servers.” He said that approximately 70% of Ethereum’s nodes were hosted by AWS or Microsoft. “We’re just paying three different landlords instead of one,” He said.
It is indeed possible to create fully decentralized system, said the expert, but “most teams won’t do it anytime soon” Because it is slower and more complex to spin up than AWS.
Wake up call
Elkaleh said that this outage could accelerate investments in decentralized networks for cloud storage and computing such as Akash. Filecoin, Arweave He called on Web3 builders to embrace hybrid models that combine traditional reliability with distributed redundancy. He encouraged Web3 developers to adopt hybrid models, which combine traditional reliability and distributed redundancy.
“Every major outage is a wake-up call,” He said. “The future of Web3 won’t be defined by how decentralized the tokens are, but by how distributed the infrastructure truly becomes.”
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Source: cointelegraph.com
