Cryptocurrencies often present themselves as technology without a single point of failure. But this week’s massive Cloudflare outage — which briefly disrupted around 20% of global internet traffic — showed a very different picture. Many crypto platforms were inaccessible for hours. Not because blockchain technology failed, but because their websites, APIs, and login systems are hosted on traditional centralized services. And experts say it’s a long-ignored problem across the industry.

Blockchain works, but the web goes down

Put simply: Blockchain is resilient and distributed across thousands of computers worldwide. But most crypto services rely on web infrastructure such as Cloudflare or Amazon Web Services — and that layer is not decentralized. When Cloudflare fails, any crypto service using it goes offline. That’s exactly what happened this week.

“Real resilience only happens when we decentralize the entire stack — not just the blockchain,” a spokesperson for EthStorage told Cointelegraph.

This isn’t an isolated incident. It happened last month, too

A similar outage hit Amazon Web Services just a month ago, taking dozens of crypto projects offline even though their blockchains continued running normally. The lesson is clear: an unbreakable blockchain doesn’t help if it’s sitting on top of a fragile, centralized web layer.

Who is working on decentralizing the web

Projects such as Filecoin, Arweave, IPFS, and EthStorage are developing ways to host websites, files, and APIs in a fully decentralized manner, removing reliance on a single provider.

Why projects still haven’t switched to decentralized infrastructure

EthStorage says the main reason is convenience. Many teams still believe decentralized solutions are slow, expensive, or hard to use. Experts argue that those assumptions are outdated. Another factor is the pressure to launch quickly — which often pushes decentralization into the “later” category.

Decentralization is not a jump

The good news: the transition doesn’t have to happen all at once. Teams can gradually move web hosting, storage, and APIs to decentralized systems and avoid being knocked offline during the next Cloudflare or AWS outage.

Sources:

https://cointelegraph.com/news/crypto-needs-end-to-end-decentralization

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