Recently, we’ve been seeing an increasing number of failures across core Internet infrastructure services. Cloudflare outages, AWS disruptions, and even compromises of major package repositories like Node.js have all highlighted how fragile the underlying web stack can be.
This trend introduces additional risks for the crypto industry, because Web3 is still heavily based on the Internet and Web2 infrastructure—despite the narrative of decentralization.
For example, infrastructure failures can lead to delays in oracle updates, including price feeds. Even a short delay might trigger mass liquidations in lending protocols that rely on timely market data.
We also shouldn’t rule out outages or security breaches affecting off-chain components of L2 networks, such as bridge infrastructure or sequencing systems.