AWS Outage | Exposes Gaps in Claims of Decentralized Web3
Edited By
Omar Ahmed
Following an AWS outage on October 20, 2025, multiple so-called decentralized platforms faltered, raising concerns about the authenticity of the decentralized internet. Notably, while Ethereum struggled, Hedera (HBAR) stood resilient, showcasing the flaws in current infrastructure perceptions.
Context of the Outage
The recent outage drew sharp criticism from many who pointed out that the term "decentralized" has been misused in many contexts. As one commenter noted, "Web3 doesn't even exist. What we have is a wrapper around Web 2.0 pretending to be Web3."
The outage highlighted the heavy reliance on centralized services. For instance, Ethereum has 27.5% of its hosting on AWS.
Hedera's Resilience
Interestingly, Hedera remained operational through the entire incident due to its Asynchronous Byzantine Fault Tolerance (ABFT) architecture.
"Hedera's performance amidst the outage attracted institutional interest, evidenced by HBAR's inclusion in several ETF filings," remarked an industry analyst.
It appears Hedera is gaining traction with businesses seeking a more stable blockchain solution, as low transaction fees and a distributed validator network demonstrated its edge.
Mixed User Sentiments
Users expressed their frustration with existing platforms. One comment read: "This all comes back around to trust outsourcing. Unless you build your wallet, you're never going to be decentralized." Another user sarcastically noted, "Yeah, was a sad day for Web3 users finding out which apps were truly decentralized."
Some noted that traditional apps managed to keep running smoothly despite the chaos, leading to questions about the very fabric of Web3.
Key Takeaways
🎯 High Reliance on Centralized Services: Many networks still rely heavily on AWS for their infrastructure.
🌍 Institutional Interest in Hedera: Growing recognition as a scalable blockchain, with several ETF filings.
📉 User Skepticism: Users question the effectiveness and reality of decentralized claims, with many viewing current technologies as “just hype.”
As the conversation around what constitutes true decentralization intensifies, stakeholders must reconsider their infrastructures to maintain credibility and user trust in the evolving digital landscape.
Future Trends in Web3
There's a strong chance we’ll see increased scrutiny over decentralized claims in light of the AWS outage. Experts estimate that within the next year, around 60% of platforms will be pressured to diversify their infrastructure away from centralized services. This shift could lead to the rise of alternative decentralized solutions like Hedera, which many in the industry now see as a more reliable option. In addition, expect a growing trend of brands promoting transparency and decentralized accountability as they face user skepticism, which is likely to reshape marketing strategies within the space.
Lessons from the Vaporware Era
A striking parallel can be drawn between the current state of Web3 and the early 2000s boom of internet startups, often labeled 'vaporware.' Just as many sleek tech products promised the world yet delivered little, today’s claims of decentralization are drawing similar scrutiny. In both cases, there was an urgency for tech companies to innovate at any cost, often leaving genuine, reliable solutions in the shadows. The expectation was that flashy applications would attract users, but the reality was far more complex. As history suggests, those who focus on sustainable development over hype will likely lead in the long run.