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The recent Cloudflare outage disrupted major crypto services and sparked strong calls for broader decentralization across the entire technology stack. Many platforms said true resilience requires secure blockchain consensus and also decentralized frontends, storage, indexing, RPC, and DNS systems.
Crypto teams noted that the industry invests heavily in decentralized validators and smart contracts. Yet many projects still depend on centralized internet layers for daily operations. EthStorage said this structure creates a weakness that can affect users during outages.
Cloudflare handled 20% of global web traffic at the time of the incident. The disruption affected several regions, including the U.K., and more than 5,000 user reports surfaced as services went offline. Experts said this showed the broader internet’s dependency chain.
The outage also followed earlier disruptions. Cloudflare faced a software bug in 2019 that affected platforms like Medium and Dropbox. While the industry accepted those events as isolated, the latest incident renewed calls for deeper infrastructure reform.
Several crypto protocols were affected during Tuesday’s outage. These services included Blockchain.com, Coinbase, Ledger, BitMEX, Toncoin, Arbiscan, and DefiLlama. The disruption cut access for platforms that rely on Cloudflare for frontend routing and DNS services.
A similar scale of disruption hit the industry one month earlier. The Amazon Web Services outage affected many of the same platforms. This pattern raised new questions for crypto teams that depend on centralized providers.
DeFi platforms faced particular pressure. Many teams want to protect users from interruptions that can impact trading, borrowing, and liquidity functions. Centralized lenders such as Tether, which dominate crypto-backed borrowing, operate in a market that continues to grow as sector leverage reaches new highs.
This steady rise in reliance on centralized layers created renewed urgency. The question now is whether the sector will shift quickly enough to avoid repeated outages.
Several crypto infrastructure builders now advance decentralized solutions designed to protect services from single-vendor failures. EthStorage, Protocol Labs through IPFS and Filecoin, and Arweave build decentralized HTTP and storage systems for broader protocol use.
Filecoin responded to the Cloudflare outage and said the event showed how much of the internet depends on a few networks. The platform said reliance on one cloud provider limits any society that needs stable access to data.
EthStorage said teams often assume decentralized alternatives are expensive or slow. The group said these views are outdated and no longer reflect current performance or cost. Many teams still choose Web2 layers because they already know the systems.
Crypto protocols now hear growing calls to adopt gradual decentralization. EthStorage said full decentralization does not need to happen instantly. Projects can set a clear roadmap and remove central points over time as they grow.
The group said this approach guides teams toward stronger architectures that can withstand outages without disruption.
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The Cloudflare outage intensified industry concern about reliance on centralized internet layers. Crypto teams now push for full-stack decentralization that includes storage, frontend systems, and access layers. The event strengthened calls for gradual shifts toward resilient designs that protect services from single-provider disruptions and support long-term operational stability.
