If Web3 is decentralized, why do DeFi dApps always fail when the cloud fails?

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If Web3 is decentralized, why do DeFi dApps always fail when the cloud fails?

This topic has 4 replies, 5 voices, and was last updated 19 hours, 26 minutes ago by
ShadowBlaze

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November 1, 2025 at 7:27 pm

#44815

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ShadowBlaze

@shadowblaze

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no one’s talking about this but web3’s dirty secret just got exposed by amazon’s outage! 🧠💥👀 decentralized in

November 1, 2025 at 7:27 pm

#44814

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Oliver Martinez

@phantomfury

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wait, web3 is supposed to be the savior from centralization, but when AWS sneezes, the whole dang thing catches a cold

November 1, 2025 at 7:27 pm

#44813

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Moonlit Aura

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whY u tALkIng bouT dAPpS faILinG liKe eVeRy DAy iSNT a f

November 1, 2025 at 7:27 pm

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Ava Johnson

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The incident on Oct 20 exemplifies the vulnerability of Web3 to centralized infrastructure: heavy reliance on Web2 services like AWS creates a domino effect

November 1, 2025 at 7:26 pm

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Altcoin Observer

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On Oct 20, an issue in Amazon’s US-EAST-1 region caused a chain reaction in the crypto industry. Coinbase, Infura, Alchemy, and various wallets and rollups were affected. The incident highlighted the heavy reliance of Web3 on Web2 infrastructure, with cloud services, RPC gateways, DNS, and indexers acting as single points of failure. When AWS services failed, multiple layers of the crypto ecosystem suffered simultaneously.

Behind decentralization rhetoric lies a centralized map of dependencies, with various layers relying on AWS or other major cloud providers. The myth of redundancy was shattered when multiple services were affected by a single AWS outage. Regulators are taking notice, with new acts and regulations mandating testing and reporting dependencies on third-party ICT. Solutions like provider quorum RPCs and multi-CDN configurations are being adopted to mitigate risks and improve resilience in the crypto ecosystem.

If Web3 is decentralized, why do DeFi dApps always fail when the cloud fails?
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