Crypto and Web3 initiatives typically promote themselves as decentralized but are still dependent on centralized cloud infrastructures for application support.

The emergence of AI-driven no-code tools is anticipated to challenge the stronghold of Amazon Web Services (AWS) in the cloud computing arena. Lomesh Dutta, the vice president of growth at the Dfinity Foundation, indicated that no-code tools will enhance accessibility to app development, enabling tailored user experiences that necessitate AI’s ongoing input and management.

The shift towards user-created applications diminishes the reliance on centrally managed software solutions based on traditional server systems.

AWS Dominance AWS continues to dominate the cloud-computing market in 2025. Source: Statista

Dutta noted, “When applications are continually created and improved by AI, the required infrastructure must be secure, resistant to tampering, and operating independently of constant human management.” He emphasized:

“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.”

Dominic Williams, founder of the Internet Computer, pointed out that many crypto and Web3 enterprises still depend on AWS for the functionality of their consumer-facing applications.

AWS Outages Impact Crypto Sector in 2025

Multiple outages at AWS in 2025 significantly hindered various crypto platforms using its servers. The first outage occurred in April, leading to disruptions in centralized crypto exchanges like Binance, KuCoin, and MEXC, with Binance briefly halting withdrawals.

Another outage took place in October, disrupting services on Coinbase’s mobile app, causing users to experience login difficulties and transaction delays.

AWS Reported Outage AWS reports an outage on October 20. Source: AWS Health Dashboard

This outage affected several financial applications, including Robinhood and the Web3 wallet, MetaMask. The October AWS incident persisted for approximately 15 hours, highlighting how the crypto sector’s claims to decentralization clash with actual dependencies on centralized cloud suppliers.

Criticism has arisen from industry leaders about this reliance, including Jamie Elkaleh from Bitget Wallet and Carlos Lei from Uplink, both voicing concerns on the need for true decentralization in infrastructure. “Decentralization has succeeded at the ledger layer but not yet at the infrastructure layer,” Elkaleh expressed in October.