The cryptocurrency ecosystem has made significant progress in blockchain decentralization, but blockchain infrastructure platforms believe that the recent Cloudflare incident indicates that true resilience requires decentralization of both the front end and the storage layer.
A spokesperson for EthStorage explained to Cointelegraph on Wednesday, "Achieving blockchain decentralization through consensus, a strong set of validators, and smart contracts is crucial, but this only represents one side of the equation."
"True resilience requires rethinking the entire tech stack—not just the blockchain layer," they said, emphasizing that remote procedure calls, domain name systems, APIs, indexing, and storage should also be decentralized.
EthStorage stated that this "end-to-end decentralization" ensures that protocols do not collapse due to single points of failure.
On Tuesday, crypto protocols such as Blockchain.com, Coinbase, Ledger, BitMEX, Toncoin, Arbiscan, and DefiLlama were affected by a Cloudflare network outage, which impacted about 20% of internet traffic.
A month ago, an outage at Amazon Web Services (AWS) also affected a similar number of crypto protocols.
EthStorage, Protocol Labs through IPFS and Filecoin, and other crypto platforms like Arweave are building decentralized HTTP and storage solutions for crypto protocols to respond more resiliently to internet failures.
Filecoin also commented on the Cloudflare incident, stating, "Outages like yesterday's show how much traffic flows through a few centralized networks," while adding that "relying on a single cloud service provider imposes limitations on any society that depends on stable data access."
EthStorage noted that many crypto protocols rely on Web2 infrastructure for convenience and familiarity in their front-end and support layers.
Many teams believe that decentralized alternatives are slower, more expensive, harder to maintain, and less user-friendly, but EthStorage stated that these assumptions are "outdated."
EthStorage mentioned that they have also deprioritized decentralization because they are more focused on smooth launches and building user bases. "Since users often do not see the underlying infrastructure, there is almost no immediate pressure for decentralization. As a result, decentralization becomes an 'optional follow-up step' rather than a core architectural requirement."
For crypto protocols that still rely on centralized components, EthStorage stated that the good news is that full decentralization can be achieved gradually:
They added, "Incorporating this direction into the roadmap can ensure that over time, they move towards a resilient and fully decentralized architecture that will not collapse due to any single vendor's outage."
Last Wednesday, Ethereum co-founder Vitalik Buterin stated in the "Trustless Manifesto" that builders should never sacrifice decentralization in pursuit of adoption.
Buterin, along with Ethereum Foundation researchers Yoav Weiss and Marissa Posner, stated that protocols sacrifice trustlessness from the moment they integrate hosted nodes or centralized relays, explaining that while this may seem harmless, each new checkpoint becomes a potential bottleneck.
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Original article: “Cloudflare Outage Indicates Cryptocurrency Needs End-to-End Decentralization”
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