Crypto’s reliance on centralized infrastructure is reflected in the AWS rollout
Earlier this week, outages at Amazon Web Services (AWS) led to temporary downtimes for a large number of web applications and services, including the End-to-End Encrypted Messenger signal. In response, many technologists point to this situation as another example of the Internet’s perceived dependence on centralized infrastructure.
While Crypto should be otherwise separated from what is in the middle of this thing, especially in terms of financial applications, even that section of the web is experiencing large amounts of rest. Central exchanges, such as Coinbase and their relatives, were not accessible for a while, which should not be considered too surprising, but it did not end there.
AWS is down and the Internet stops working.
But blockchain, it never came back… wait a minute. Write that down.
This industry is a joke.
Everyone is preaching a lot of isolation and anti-blocking but in reality… it all depends 100% on the cloud. pic.twitterst.com/6Yuhp5bll3
– LefterIS karapetsas (@Llefterisjp) October 20, 2025
Real crypto infrastructure, such as web-based wallets and decentralized applications (defi), it was unreachable. Perhaps most worryingly, all blockchain networks stopped working, as most (all?) of the sites on those particular networks were running on AWS.
Decentralization was the fundamental innovation made by Satoshi Nakamoto with the launch of the Bitcoin Blockchain in 2009; However, sharing the heart was not an end goal, it was a means to an end. Previously, centralized digital systems existed shut up below by the government or they just failed again he went to the bank Over time, therefore, the use of a decentralized blockchain structure is what has enabled bitcoin to continue as an experiment in a new monetary and financial system. In this way, Bitcoin is often compared to the protocol-to-peer shared by Bittorol Bittorrent, while the previous digital systems are close to the starster in their designs.
For those interested in crypto, many of the innovations in blockchain technology are related to the restoration of regulatory control. Users are able to hack their own blockchain more easily than traditional financial institutions, as the process is as simple as downloading a bank account or signing up for a credit card. In this way, Fintechs seem more interested in the lack of anti-money laundering regulations surrounding Blockchain-based activity than anything else.
Well Yes, they need to call it stablecoin and say Blockchain a few times so they don’t have to do KYC / AML compliance for every transaction.
– Kyle Torpey (@kyletorpey) On October 10, 2025
coinbase’s Blockchain Blockchain a A Clear Example In this type of phenomenon, as they collect all payments generated by the Elereum Layer-Network Bale systematically without collecting personal information about users. Of course, Coinbase says it will increase the rate of birth of the findings on the foundation’s blockchain over time, allowing other groups to raise money to participate in the return sequence.
Notably, the foundation is one of the blockchains that was inaccessible during the AWS outage earlier this week.
To be clear, there is nothing wrong with rearrawoffs when it comes to developing the use and mass appeal of Bitcoin and other similar technologies. For example, the new advanced protocol of bitcoin was launched on Tuesday That includes a lot of integration in terms of payment functionality, but also allows users to withdraw from the underlying Blockchain in the event that the service provider tries to steal their customers or simply goes out of business.
However, there is a growing concern that the Crypto sector in general is becoming more and more integrated too far, as highlighted by The latest departure of the Ethereum Foundar researcher Fintech Giant Stripe is a blockchain-focused startup. And bitcoin itself, which is said to be the gold standard of Crypto Decentralization, You are not at all immune to this pressure in high concentrationsince WALL STREETEL STREETIT’s adoption of crypto assets as a store of value has led to consolidation in the form of a renaissance of satoshis with third-party information that is intended to be avoided.
cyperpunks manifesto. With the adoption of Bitcoin, we are reinventing ourselves by protecting what we think will be established. Discuss. pic.twitterst.com/tycllq2nwp
– Adam back (@Adam3us) On October 22, 2025
CIPERPUKS has faced problems when it comes to creating software that maximizes privacy and sovereignty while also being humane for decades. And the situation with Bitcoin and Crypto more generally is no different. The value proposition of this new financial technology is very clear to clarify more of its basics, the basics are removed from the end user, but the fact is that the average person often uses applications that make things easier to use and easier than anything else.
