The cryptocurrency market suffered significant losses due to the recent failure of Cloudflare

The crypto industry has made significant progress in decentralizing blockchains, but the recent Cloudflare outage, which affected about 20% of internet traffic, has shown that true resilience is only possible with full, end-to-end decentralization — from consensus to storage infrastructure to user interfaces.

According to Cointelegraph, EthStorage representatives said that the current model of crypto protocols remains vulnerable due to the dependence on centralized services such as DNS, APIs, indexing, file storage, and remote calls (RPC). «True decentralization means rethinking the entire technology stack, not just the blockchain layer,» the company emphasized.

Among the projects affected by Cloudflare’s failures were Blockchain.com, Coinbase, Ledger, BitMEX, Toncoin, Arbiscan, and DefiLlama. A similar situation occurred a month ago due to the failure of Amazon Web Services, which once again confirmed the vulnerability of Web3 services that rely on Web2 infrastructure.

Decentralized platforms such as EthStorage, Protocol Labs (via IPFS and Filecoin), and Arweave are actively developing alternative solutions for decentralized hosting and storage. In its commentary, Filecoin emphasized that such failures demonstrate how much Internet traffic passes through a few centralized nodes, and that «dependence on a single cloud provider limits any society that relies on stable access to data.»

According to the developers, many crypto projects still use centralized components for reasons of convenience or quick product launch. EthStorage notes that such arguments are already outdated: decentralized solutions are becoming more efficient and convenient, and the complete abandonment of centralized dependencies can occur gradually, as part of a long-term development plan.

Бутерін" href="https://noworries.news/biography/vitalij-buterin/" data-bio-id="3642">Vitalik Buterin, co-founder of Ethereum ETH $2,823.41 Bridged Ether (StarkGate) -2.24% Market capitalization $71.46 million VOL. 24 hours $2.46 billion , emphasized in his «Manifesto of Trust» that developers should not sacrifice decentralization for the sake of convenience or faster implementation. According to him, each centralized component — even a seemingly harmless node or repeater — creates a potential «point of failure» that undermines the basic principle of cryptosystems: trust without intermediaries.