Article Summary

**AWS Outage Exposes Cryptocurrency's Centralization Problem as DeFi Platforms Crash** The October 20, 2025 Amazon Web Services outage dealt a devastating blow to cryptocurrency's decentralization narrative, forcing thousands of blockchain applications and DeFi platforms offline. This major AWS meltdown highlighted the crypto industry's dangerous reliance on centralized cloud infrastructure, contradicting Bitcoin's founding principles of distributed networks. Popular cryptocurrency exchanges, NFT marketplaces, and decentralized finance protocols experienced widespread service disruptions, leaving traders unable to access their digital assets during critical market hours. The outage exposed how many supposedly "decentralized" blockchain applications actually depend on Amazon's centralized servers for hosting and data management. This infrastructure failure raises serious questions about the true decentralization of modern cryptocurrency ecosystems. While Bitcoin's core network remained operational, the broader crypto market's dependence on traditional tech giants like Amazon creates significant vulnerability points that undermine blockchain technology's revolutionary promise. The incident serves as a wake-up call for the cryptocurrency industry to prioritize genuine decentralization over convenience, as centralized points of failure continue to threaten the integrity of digital asset markets and DeFi protocols worldwide.