AWS outage shows even “decentralised” Web3 startups rely on centralised infrastructure
TechCabal | Emmanuel Nwosu - Oct 20, 2025

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- Amazon Web Services experienced a network outage that disrupted a third of the internet, affecting various sectors.
- Web3 startups Azza and AZA Finance faced transaction processing disruptions due to the AWS outage.
- Palremit maintained uptime during the outage by using a redundant multi-cloud server system.
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The reliance on centralized cloud services by Web3 startups poses significant risks, as demonstrated by the recent AWS outage. While multi-cloud strategies can mitigate these risks, they also increase operational costs, creating a challenging balance for startups. This incident underscores the need for a more resilient infrastructure in the tech industry, especially for businesses that advocate decentralization.
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