Why Crypto’s Infrastructure Hasn’t Caught Up With Its Ideals
The post Why Crypto’s Infrastructure Hasn’t Caught Up With Its Ideals appeared com. Periodic service disruptions and capacity strain on centralized cloud infrastructure have created an opening for companies building distributed networks. Supporters of the distributed approach argue that spreading workloads across several smaller nodes reduces concentration risk. They say the model could be especially valuable in sectors with high computing demand and low tolerance for downtime, such as AI, gaming and finance. “Over time, as decentralized infrastructure matches or exceeds the performance of centralized clouds, reliance on single providers will naturally decline,” Carlos Lei, CEO and co-founder of DePIN-based connectivity marketplace Uplink, told Cointelegraph. In today’s tech landscape, decentralized infrastructure often refers to blockchain, which is designed to distribute trust and reduce single points of failure by spreading verification and data storage. However, the infrastructure that enables access to these networks still largely relies on centralized cloud platforms. Crypto traders reported issues when centralized cloud services crashed. Cloud revenue has surged alongside generative AI services. “For example, with the AWS outage in October, Snapchat, Roblox, Fortnite, Kindle all of them went down completely,” Nökkvi Dan Ellidason, CEO of tech infrastructure company Gaimin, told Cointelegraph. “Coinbase, which is a financial service, was affected massively.” Related: Privacy tools are rising behind institutional adoption, says ZKsync dev These major platforms lower upfront costs through programs that provide a cushion.