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AWS Outage Exposes Centralization Risks in Web3 Ecosystem

AWS Outage Exposes Centralization Risks in Web3 Ecosystem

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by Satoshi Nakamura

28 minutes ago


A significant outage of Amazon Web Services (AWS) on October 20, 2025, has sent shockwaves through the Web3 ecosystem, affecting major platforms like Coinbase, Solana, and Ethereum. This incident has highlighted the vulnerabilities associated with centralized infrastructure in the rapidly evolving crypto landscape. According to the results published in the material, the impact of this outage could have long-lasting effects on user trust and platform reliability.

AWS Outage and Its Impact on the Crypto Industry

The AWS outage resulted in notable transaction slowdowns and node failures across various platforms, prompting stakeholders to reassess their reliance on centralized services. Evgeny Ponomarev from Fluence emphasized that the costs of centralization extend beyond mere downtime, impacting trust within the ecosystem.

Decentralized Infrastructure Solutions

In light of these challenges, companies such as

  • ConsenSys
  • Fluence
are stepping up to offer decentralized infrastructure solutions aimed at bolstering the resilience of the crypto industry. This shift towards decentralization is not just a response to the outage; it reflects a growing trend among financial institutions that are increasingly interested in technologies that provide greater autonomy from traditional cloud services.

The Future of Web3 Platforms

As the industry grapples with the implications of this outage, the call for decentralized alternatives is becoming louder, signaling a potential transformation in how Web3 platforms operate and secure their infrastructures in the future.

In light of the recent AWS outage affecting major platforms, COTI has introduced its Garbled Circuits framework, which aims to enhance the performance of decentralized applications. For more details, see read more.

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