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Home » Cloudflare outage shows why crypto needs end-to-end decentralization
Cryptocurrency & Free Speech Finance

Cloudflare outage shows why crypto needs end-to-end decentralization

News RoomBy News Room3 hours agoNo Comments3 Mins Read1,097 Views
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The crypto ecosystem has made strides in decentralizing blockchains, but the recent Cloudflare incident showed that true resilience requires decentralizing the frontend and storage layers as well, blockchain infrastructure platforms argue.

Decentralizing blockchains through consensus, a robust set of validators, and smart contracts is essential, but it represents only one side of the equation,” an EthStorage spokesperson explained to Cointelegraph on Wednesday

“True resilience requires rethinking the whole stack — not just the blockchain layer,” they said, highlighting that Remote Procedure Call, Domain Name System, API, indexing and storage should also be decentralized.

This kind of “end-to-end decentralization” ensures that protocols cannot be taken down by a single point of failure, EthStorage said.

Source: EthStorage

Blockchain.com, Coinbase, Ledger, BitMEX, Toncoin, Arbiscan, and DefiLlama were among the crypto protocols that were impacted by the Cloudflare network outage on Tuesday, which impacted around 20% of internet traffic.

A similar number of crypto protocols were also impacted by the Amazon Web Services outage one month ago.

EthStorage, Protocol Labs via IPFS and Filecoin, and Arweave are among the crypto platforms building decentralized HTTP and storage solutions for crypto protocols to respond more resiliently to internet failures.

Filecoin also addressed the Cloudflare incident, stating: “Outages like yesterday show how much traffic flows through a handful of centralized networks,” while adding that “Relying on a single cloud provider creates limits for any society that depends on stable access to data.”

EthStorage said many crypto protocols rely on Web2 infrastructure for frontend and supporting layers out of convenience and familiarity.

Many teams assume that decentralized alternatives are slower, more expensive, harder to maintain, and less user-friendly, but EthStorage said these assumptions are “outdated.”