The article highlights the critical reliance of many 'decentralized' web3 projects on centralized cloud providers like aws, which experienced significant outages (in 2025 per the article's narrative), impacting major crypto exchanges. this vulnerability, coupled with the rise of ai-powered no-code tools requiring tamper-resistant infrastructure, creates a strong narrative for truly decentralized computing solutions. projects like internet computer protocol (icp), which aim to provide a decentralized internet infrastructure, stand to benefit significantly from this increasing demand for true decentralization.
The analysis is based on quotes from multiple crypto industry executives (dfinity foundation, bitget wallet, uplink) and references concrete (albeit future-dated in the article's narrative) aws outages that affected prominent crypto platforms, underscoring a widely recognized and urgent industry problem.
As the crypto industry matures, the imperative for true decentralization at the infrastructure layer becomes more pronounced, especially given the risks posed by centralized service outages. the confluence of ai, no-code tools, and the philosophical push for decentralization will drive demand towards projects offering robust, decentralized computing paradigms, creating a bullish outlook for relevant cryptocurrencies like icp.
Shifting the foundational infrastructure for web3 projects from centralized cloud providers to decentralized networks is a monumental undertaking. it requires significant development, adoption, and a complete architectural re-evaluation. the full benefits and widespread implementation of such a change will manifest over several years, rather than in the short term.
Vince Quill 53 seconds ago Blockchain and no-code tools challenge AWS' dominance: Crypto exec Crypto and Web3 projects market themselves as decentralized but still rely on centralized cloud infrastructure to power applications. Listen 0:00 News COINTELEGRAPH IN YOUR SOCIAL FEED The rise of AI-powered no-code tools that allow users to create applications through linguistic prompts rather than computer code, decentralized through blockchain technology, will challenge Amazon Web Services’ (AWS) dominance of the cloud computing market. No-code tools will democratize access to app creation and custom-tailored user experiences that will require constant updates and maintenance from AI, Lomesh Dutta, vice president of growth at the Dfinity Foundation, a non-profit organization that guides development of the Internet Computer Protocol (ICP) ecosystem, told Cointelegraph. This rise of user-created applications eliminates the need for centrally managed software solutions stored on centralized servers. AWS continues to dominate the cloud-computing market in 2025. Source: Statista “When applications are continuously generated and evolved by AI, you need infrastructure that is secure, tamper-resistant, and able to stay online without constant human intervention,” he said. Lomesh added: “Decentralized blockchain networks introduced a revolutionary computing paradigm: by eliminating central points of control, they enable the creation of secure, reliable, and fault-tolerant software.” A significant portion of crypto companies and Web3 projects rely on centralized AWS infrastructure to power their consumer-facing applications and websites, Internet Computer founder Dominic Williams told Cointelegraph. Related: Cloudflare outage shows why crypto needs end-to-end decentralization AWS outages rock the crypto industry in 2025 Several AWS outages occurred in 2025, impacting multiple crypto platforms and exchanges using AWS servers and data centers to host their applications. The first outage occurred in April, causing disruptions to centralized crypto exchanges , including Binance, KuCoin and MEXC. At the time, Binance temporarily paused withdrawals until normal service was restored. AWS experienced another outage in October, causing disruptions in crypto exchange Coinbase’s mobile application, with users reporting login problems, slowdowns and withdrawal issues. AWS reports an outage on October 20. Source: AWS Health Dashboard Other financial applications were impacted by the outage, including the mixed-asset brokerage platform Robinhood and Web3 wallet MetaMask. The October AWS outage lasted for about 15 hours and underscored the level of reliance crypto and Web3 projects, which market themselves as decentralized alternatives, have on centralized cloud infrastructure providers. Crypto’s reliance on centralized infrastructure has drawn criticism from several crypto industry executives , including Jamie Elkaleh, chief marketing officer at crypto wallet company Bitget Wallet, and Carlos Lei, co-founder of decentralized physical infrastructure network (DePIN) marketplace Uplink. “Decentralization has succeeded at the ledger layer but not yet at the infrastructure layer,” Elkaleh told Cointelegraph in October. Magazine: Meet the onchain crypto detectives fighting crime better than the cops # Blockchain # Amazon # Decentralization # AI # Cloud Services # Cloud Storage # Web3 Add reaction