What the AWS Outage Revealed — and Why Projects Like Fluence Are Rebuilding Cloud Infrastructure for Web3
A latest outage at Amazon Net Providers (AWS) froze hundreds of functions and reignited debate about web3’s reliance on centralized cloud suppliers.
The disruption uncovered how deeply crypto platforms nonetheless rely upon Web2 infrastructure for methods meant to function with out interruption.
How a Centralized Outage Crippled Decentralized Methods
On October 20, 2025, the AWS US-EAST-1 area went darkish for almost three hours as a result of a DNS bug in its DynamoDB service, freezing hundreds of functions worldwide. The outage, which started round 07:55 UTC and was resolved by 09:35 UTC, stemmed from a latent software program defect that created an empty DNS file, requiring handbook intervention to repair.
The AWS outage triggered a sequence response, disrupting main tech platforms like Lyft, Peloton, and Roblox. The crypto and web3 business additionally skilled widespread disruption. Coinbase Superior, a key buying and selling platform, halted operations solely, leaving customers locked out of their accounts and unable to execute trades.
Base, Coinbase’s Ethereum Layer-2 blockchain, skilled extreme slowdowns, with transaction throughput dropping dramatically as AWS-hosted infrastructure failed. Different ecosystems weren’t spared: Solana noticed intermittent node failures, Ethereum’s decentralized apps (dApps) confronted API disruptions, and Polygon reported partial outages in its scaling options.
This occasion referred to as into query the elemental promise of blockchains to create functions that may function constantly with out counting on any single server, firm, or authorities. The failure revealed how single factors of failure proceed to compromise web3’s imaginative and prescient of unstoppable functions.
“The latest AWS outage is a reminder that web3’s promise of decentralization can’t depend on centralized backbones. Each outage like AWS’s exhibits the price of centralization, not simply in downtime however in belief,” stated Evgeny Ponomarev, co-founder of Fluence.
Decentralized Compute Exhibits Promise Amid Technical Hurdles
Decentralized Bodily Infrastructure Networks (DePIN) introduces a brand new mannequin for provisioning compute sources. As a substitute of relying on centralized information facilities, DePIN connects a worldwide pool of unbiased suppliers by a peer-to-peer market.
Every server contributes compute, storage, or GPU capability that’s verified on-chain for transparency. Management is distributed, not owned, and the system scales organically as new members be a part of.
This construction replaces huge, single-region information facilities with a distribution throughout hundreds of unbiased servers. If one fails, the workload may be seamlessly migrated to different servers or information facilities.
This distributed mannequin additionally drives a major value benefit. By tapping into idle world compute capability, DePIN suppliers obtain larger effectivity, usually reporting prices which are as much as 85% decrease in contrast with main hyperscalers. As an example, Fluence is one in every of a number of initiatives growing decentralized compute networks beneath the DePIN mannequin.
The platform connects verified goal=”_blank” rel=”noreferrer noopener”>2025 State of Crypto report, the World Financial Discussion board initiatives the DePIN class will develop to $3.5 trillion by 2028.
Whereas DePIN can not but match the speedy world scale of a hyperscaler, its open supply foundations make it way more adaptable. By constructing on open requirements, workloads can transfer throughout a number of suppliers with minimal friction. Builders acquire actual portability as a substitute of being locked right into a single vendor’s API or billing mannequin.
In apply, decentralized networks like Fluence are already displaying how open supply infrastructure can join unbiased suppliers into one interoperable material that behaves like a cloud, but stays totally moveable and clear.
Evgeny defined:
“The purpose is to not change AWS in a single day however to make migration easy and selection actual,” stated Evgeny Ponomarev, co-founder of Fluence. “When compute runs on open protocols throughout many suppliers, outages cease being systemic failures. They change into native occasions the community can take in”
This open, cross-provider cloud mannequin gives a path towards resilience that centralized architectures can not match. As DePIN matures, it might redefine the baseline for reliability by making the cloud itself open supply and the act of migration so simple as redeploying code.
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