AWS Outage Shows Why Web3 Needs DePIN Infrastructure
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A recent outage at Amazon Web Services (AWS) froze thousands of applications and reignited debate about web3’s reliance on centralized cloud providers. The disruption exposed how deeply crypto platforms still depend on Web2 infrastructure for systems meant to operate without interruption. How a Centralized Outage Crippled Decentralized Systems On October 20, 2025, the AWS US-EAST-1 region went dark for nearly three hours due to a DNS bug in its DynamoDB service, freezing thousands of applications worldwide. The outage, which began around 07:55 UTC and was resolved by 09:35 UTC, stemmed from a latent software defect that created an empty DNS record, requiring manual intervention to fix. The AWS outage triggered a chain reaction, disrupting major tech platforms like Lyft, Peloton, and Roblox. The crypto and web3 industry also experienced widespread disruption. Coinbase Advanced, a key trading platform, halted operations entirely, leaving users locked out of their accounts and unable to execute trades. Base, Coinbase’s Ethereum Layer-2 blockchain, experienced severe slowdowns, with transaction throughput dropping dramatically as AWS-hosted infrastructure failed. Other ecosystems weren’t spared: Solana saw intermittent node failures, Ethereum’s decentralized apps (dApps) faced API disruptions, and Polygon reported partial outages in its scaling solutions. This event called into question the fundamental promise of blockchains to create applications that can operate continuously without relying on any single server, company, or government. The failure revealed how single points of failure continue to compromise web3’s vision of unstoppable applications. “The recent AWS outage is a reminder that web3’s promise of decentralization can’t rely on centralized backbones. Every outage like AWS’s shows the cost of centralization, not just in downtime but in trust,” said Evgeny Ponomarev, co-founder of Fluence. Decentralized Compute Shows Promise Amid Technical Hurdles Decentralized Physical Infrastructure Networks (DePIN) introduces a new model for provisioning compute resources. Instead of depending on centralized…
Filed under: News - @ October 30, 2025 7:25 am