AWS, Coinbase, and Outages: A Crypto Reality Check

Another AWS outage brought Coinbase and other crypto platforms to their knees, exposing the fragility of relying on centralized cloud services. Is true decentralization just a dream?

Another day, another AWS outage wreaking havoc. This time, Coinbase and other crypto platforms felt the sting, reminding everyone that even in the decentralized world of crypto, centralized infrastructure still reigns supreme. Let's dive into what happened and why it matters.

Déjà Vu: AWS Outage Knocks Out Crypto Services

On October 20, 2025, the internet experienced a familiar shudder as an Amazon Web Services (AWS) outage rippled across the web. From Snapchat to Fortnite, services faltered, and the crypto world was no exception. Coinbase, Base, and Robinhood all reported disruptions, highlighting the crypto industry’s continued reliance on centralized cloud providers.

Coinbase acknowledged that many users couldn't access their services due to the AWS hiccup. Base, Coinbase's blockchain, also felt the impact, with submissions stalling and transaction capacity dwindling. Even Consensys’ Infura, a blockchain infrastructure hub, experienced widespread issues, affecting multiple networks like Polygon, Optimism, and Arbitrum.

Not the First Rodeo: A Recurring Problem

This isn't a one-off incident. Back in April 2025, a similar AWS connectivity snag disrupted major exchanges like Binance, KuCoin, and MEXC, leading to failed orders and delayed transfers. Experts have warned that despite the decentralization narrative, the crypto ecosystem remains heavily tethered to centralized cloud providers. Even Ethereum and Solana nodes often find themselves hosted on AWS.

The Decentralization Dream vs. Centralized Reality

The core promise of cryptocurrency is to operate without a single point of failure. Bitcoin, the OG blockchain, was built on this principle. Yet, the reality is that major crypto trading platforms depend on infrastructure controlled by a handful of tech giants. AWS provides cloud services to some of the biggest names in the game, including Binance, Coinbase, Crypto.com, and Kraken.

Is There a Fix? Decentralized Infrastructure to the Rescue?

Some blockchain projects are attempting to build decentralized alternatives to AWS, but widespread adoption remains elusive. Until the crypto industry can make decentralized infrastructure the standard, users will continue to feel the aftershocks of web2 vulnerabilities.

Dr. Max Li, founder and CEO of OORT, points out that these outages highlight the need for decentralized solutions. Decentralized cloud computing, by distributing data and processing across a network, reduces the risk of single points of failure. However, the DePIN sector is still in its early stages, holding less than 0.1% market share.

Centralization Isn't All Bad

AWS provides crypto companies, and the general internet, the ability to handle high transaction volumes with low delay times. This is critical to the function of many applications. Furthermore, AWS, Google, and Microsoft provide unparalleled infrastructure. If crypto companies are to grow, they need the ability to harness the products and services of centralized organizations.

The Wake-Up Call: What Now?

These recurring outages serve as a stark reminder of the digital world’s fragility. As digital asset adoption grows, exchanges need robust backup systems to maintain service during cloud provider failures. It's time for the crypto industry to seriously consider how to build more resilient and truly decentralized infrastructure.

So, what’s the takeaway? The next time you hear about a massive internet outage, don't be surprised if your crypto apps are affected. Until true decentralization becomes a reality, we're all just living in a web2 world with web3 aspirations. Keep your seatbelts fastened, folks – it's going to be a bumpy ride!