Solana News Update: Centralized Vulnerabilities in DeFi—Cloud Service Failures Challenge Decentralization Claims
- Recent cloud outages exposed DeFi's reliance on centralized infrastructure, undermining decentralization promises. - AWS and Azure outages in October 2025 disrupted DeFi apps, highlighting systemic vulnerabilities. - DeFi platforms depend on centralized APIs and tools, creating single points of failure during outages. - AI integration in cloud services centralizes computational power, increasing DeFi's fragility. - Hybrid blockchain ecosystems remain vulnerable as critical components like wallets are cen
The contradiction at the heart of Web3 decentralization has become apparent once again, as recent disruptions in cloud services have highlighted weaknesses in decentralized finance (DeFi) platforms. Although blockchain technology is built on a distributed framework, decentralized applications (dApps) continue to be at risk when centralized cloud providers experience issues, casting doubt on the sector’s actual robustness, according to a report by
This concern was brought into sharp focus in October 2025, when
Despite being designed to function without intermediaries, DeFi systems are still exposed to these types of risks. Research from 1kx.capital showed that DeFi and blockchain applications generated $6.1 billion in on-chain fees during the first half of 2025—a 113% increase from the previous year—but these platforms still rely significantly on centralized infrastructure for their operations, as reported by
The dependence on centralized cloud providers is further intensified by the growing use of AI and machine learning in DeFi. Amazon’s recent integration of AI features like the Rufus shopping assistant into its cloud services is part of a broader shift where businesses are prioritizing technological advancement over decentralization, as highlighted by
Experts in the field point out that these challenges arise from the hybrid structure of today’s blockchain environments. While transactions on Layer 1 blockchains like
Cloud service providers are well aware of these issues. Following the recent outages, both AWS and
At present, the DeFi industry must strike a balance between utilizing centralized cloud resources for scalability and efficiency, and managing the risks of potential outages. While decentralized cloud solutions and hybrid approaches are starting to appear, their adoption is still in its early stages. Until these alternatives become more widespread, the vulnerabilities revealed by recent disruptions will continue to be a concern—serving as a reminder that decentralization alone does not fully protect systems from the weaknesses of the infrastructure they rely on.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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