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AWS Outage Sparks Debate on Crypto’s Dependence on Centralized Infrastructure

AWS Outage Sparks Debate on Crypto’s Dependence on Centralized Infrastructure.

On October 20, 2025, a major outage at Amazon Web Services (AWS) triggered widespread disruptions across thousands of platforms, exposing the crypto industry’s heavy reliance on centralized cloud infrastructure. Key players like Coinbase, Infura, and Robinhood were hit hard, with Coinbase’s exchange and Base layer-2 network both going offline.

The incident reignited concerns over decentralization in crypto. Ben Schiller, Head of Communications at Miden, remarked, “If your blockchain is down because of the AWS outage, you’re not sufficiently decentralized.” Similarly, SheFi founder Maggie Love emphasized that if users can’t connect to Ethereum mainnet when AWS fails, “we are not decentralized.”

Infura confirmed that multiple blockchain endpoints — including Ethereum, Polygon, Optimism, Arbitrum, Linea, Base, and Scroll — were disrupted due to the outage. Although block production on major networks continued, user-facing services and gateways relying on AWS were paralyzed, halting access to wallets and decentralized apps.

This event exposed a contradiction within crypto’s infrastructure: while protocols advocate for decentralization, much of their backend — trading engines, APIs, and custodial systems — still depends on centralized Web2 providers. Chris Jenkins of Pocket Network noted that blockchain and the broader internet “are only as decentralized as the infrastructure they run on.”

Industry voices, including Sei Labs co-founder Jay Jog, argued that true resilience lies in operating on decentralized layer-1 blockchains like Ethereum and Sei. Despite past warnings following similar AWS outages, the October incident revealed that little progress had been made toward decentralizing critical infrastructure.

As the crypto sector assesses the damage, the call for building decentralized infrastructure has never been louder — a reminder that real decentralization means more than just distributed ledgers; it requires eliminating single points of failure.

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Great article. Requesting a follow-up. Excellent analysis.

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Great article. Requesting a follow-up. Excellent analysis.
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