When We Call It Web3, But It’s Still Web2 at the Core
The vision of web3 promises a decentralized, secure, and user-sovereign internet — a digital world where individuals control their data, assets, and identities, free from the grip of centralized gatekeepers. On the surface, this sounds like a revolutionary evolution from the web2 era dominated by tech giants. But peel back the layers of this so-called decentralized web, and you’ll discover an uncomfortable truth: much of what we call web3 still depends heavily on the same centralized infrastructure it claims to transcend.
The core idea behind web3 is to shift control away from a handful of corporations and place it in the hands of users through decentralized applications (dApps), distributed ledgers, and peer-to-peer networks. But while the front-end interfaces of many dApps may appear decentralized, their back-end infrastructure often tells a different story. Blockchains, the backbone of web3, do not exist in a vacuum — they run on physical servers housed in centralized data centers, many of which are operated by companies like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure.
This underlying dependency was made evident during recent high-profile outages. When AWS temporarily went offline, major crypto exchanges like Binance and KuCoin were forced to halt operations. These disruptions exposed a fundamental weakness in the current web3 ecosystem: the illusion of decentralization. If a single cloud provider’s downtime can cripple multiple web3 services, how decentralized are these platforms really?
Ethereum, often touted as a flagship of decentralization, relies on AWS for a significant portion of its node infrastructure. The irony is stark — a decentralized network depending on centralized servers to function. This contradiction undermines the very principles web3 stands for and raises serious concerns about the integrity and resilience of the entire ecosystem.
True decentralization requires eliminating single points of failure, not just at the application layer but throughout the entire stack, including the physical infrastructure. Historically, the internet was designed to be robust and resistant to failure — a distributed network capable of surviving outages or attacks. Yet today, a handful of cloud providers wield disproportionate control over the digital world, creating vulnerabilities that malicious actors can exploit.
These centralized chokepoints have already caused significant damage. Over the past five years, the crypto industry has suffered annual losses nearing $1 billion due to hacks and security breaches. These losses often stem from weak infrastructure security, compromised nodes, and bridges reliant on centralized cloud services. Without addressing these systemic flaws, web3 risks becoming a fragile replica of the very system it seeks to replace.
To fulfill the promise of web3, we must rethink how the internet’s infrastructure is built and maintained. This is where Decentralized Physical Infrastructure Networks (DePINs) come into play. DePINs aim to distribute the components of digital infrastructure — such as servers, network nodes, and data storage — across a wide array of independent operators and locations. By doing so, they reduce reliance on any single entity and create a more resilient, community-driven ecosystem.
DePINs are not just a theoretical concept; they represent a tangible shift toward a more robust and decentralized internet. By incentivizing individuals and communities to contribute resources, DePINs enable a peer-to-peer infrastructure model that mirrors the ideals of blockchain technology itself. This model enhances security, fosters innovation, and aligns economic rewards with participation.
Moreover, integrating advanced cybersecurity protocols, especially those designed to withstand the coming wave of quantum computing, will be essential. Post-quantum cryptography and AI-enhanced threat detection can help secure devices and networks against both current and future threats. In such a system, every node acts as a validator, constantly monitoring the behavior of others, detecting anomalies, and reacting in real time to potential attacks.
Expanding the scope of decentralization beyond the blockchain and into the underlying infrastructure is the next frontier. This involves reimagining how devices interact, communicate, and protect themselves in a decentralized network. By embedding security and autonomy into each layer of the stack, from hardware to protocol, we can begin to build a digital environment that genuinely lives up to the aspirations of web3.
Another critical factor is governance. Decentralized infrastructure must also be governed in a decentralized manner. This could involve DAO-like structures that allow contributors and users to vote on upgrades, policies, and dispute resolution. Governance mechanisms must be transparent, equitable, and resistant to capture by centralized interests.
Education and accessibility also play pivotal roles. For DePINs and true web3 to take root, users need to understand the importance of decentralization and how to participate in sustaining it. Tools must be user-friendly, and onboarding should not require deep technical expertise. Only then can we create a digital ecosystem that is inclusive and resilient.
Regulatory clarity will also influence the future of decentralized infrastructure. Governments and regulators must recognize the value of decentralization in protecting user rights and promoting innovation. Policies should support the development of open, interoperable systems rather than entrench the dominance of legacy providers.
Finally, achieving true decentralization will require a cultural shift — away from convenience and toward sovereignty. Centralized services are often faster, easier, and more familiar. But they come with trade-offs in privacy, control, and resilience. Embracing decentralization means accepting complexity in exchange for freedom. It’s a trade worth making, but only if we’re willing to fully commit.
In conclusion, while web3 has laid the foundation for a decentralized digital future, much of its current infrastructure still rests on centralized pillars. To realize the full potential of web3, we must extend decentralization from code and protocols to the physical servers and networks that power them. DePINs, enhanced cybersecurity, and community-driven governance are key elements in this transformation. Only by addressing these foundational issues can web3 evolve into a truly sovereign and resilient digital ecosystem.