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Cloudflare Outage Underscores Crypto’s Need for Full End-to-End Decentralization

Cloudflare Outage Underscores Crypto’s Need for Full End-to-End Decentralization

A Cloudflare outage affected about 20% of internet traffic, making it very clear how much the crypto sector relies on centralized Web2 service providers. As a result, many large crypto sites, such as Blockchain.com, Coinbase, Ledger, , Toncoin, Arbiscan, and DefiLlama, went down. 

This difficulty was similar to the Web Services outage that happened a month earlier, showing that the sector’s infrastructure has a recurring flaw. Even though blockchains themselves have come a long way toward being decentralized, platforms are still vulnerable to single points of failure in their supporting layers.

Calls for Decentralization from begin to Finish

Leaders in the industry and blockchain infrastructure projects say that real crypto resiliency needs more than just decentralized consensus. EthStorage out that the blockchain layer isn’t the only thing that has to be decentralized. 

Other parts, such as Remote Procedure Calls (RPC), the Domain Name System (DNS), , indexing, and data storage, also need to be decentralized. “End-to-end decentralization” means making sure that no aspect of a protocol’s technology stack becomes a fragile point that third-party outages could exploit.

Vulnerabilities in the Frontend and Storage

As become more mature in their decentralized governance and Block confirmer sets, crypto projects still typically use centralized service providers for speed and ease of use on their frontends and data layers. 

EthStorage said that there isn’t much of a visible need for teams to rapidly decentralize the frontend or storage because users usually engage with user interfaces instead of backend infrastructure.

This trend is further accentuated by beliefs about decentralized alternatives being sluggisher or less user-friendly, views that systems like EthStorage, Protocol Labs, , and Arweave now challenge with new decentralized storage and HTTP answers.

A Gradual Path to Full Resilience

It is not necessary to establish complete end-to-end decentralization all at once. EthStorage says that moving away from centralized dependence sluggishly is both possible and a excellent idea. 

As the number of users grows, projects can improve security without sacrificing usability or availability by gradually decentralizing execution, access, and storage. Aligning development roadmaps with this goal is crucial for building crypto systems that will last.

Never Sacrifice Decentralization, Says Buterin

Vitalik Buterin, one of the co-founders of , recently told crypto architects that they should never compromise trustlessness for ease of acceptance. This aligns with the call for greater decentralization. 

In a “Trustless Manifesto,” and researchers from the ETH Foundation warned that ahead uses of centralized relayers or hosted nodes, even if they don’t viewm significant at first, will lead to later bottlenecks. Each reliance could fragileen the protocol’s trustworthiness.

The Cloudflare outage has spurred new discussions in the crypto community about the best way to stop relying on Web2 infrastructure.

Decentralizing every layer remains a long-term objective, but leaders agree that the crypto ecosystem’s future stability and trustworthiness depend on careful planning and incremental steps toward full-stack decentralization. 

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