24 hours after Cloudflare crashed: Why did the network "collapse"? Centralization Risks to the Future of Web3 and RWA
On November 18th, the Cloudflare crash caused global network paralysis, exposing the single point of risk problem of centralized infrastructure. Let’s explore how Web3 and RWA can create a more reliable decentralized future. This article originates from articles written by RWA Knowledge Circle, and is organized, compiled and written by ForesightNews.
(Preliminary summary: A major failure of Cloudflare caused a large-scale paralysis of the global network. Is "decentralized architecture" the future of infrastructure construction? )
(Background supplement: Dragonfly partner: It is currently the "most Buddhist bear market in history." Relax, Bitcoin rebounded by $96,000)
Contents of this article
November 18, including X and ChatGPT Many foreign online platforms, including the Internet, suddenly became inaccessible at the same time!
Many users see "Please unblock challenges.cloudflare.com to continue" appearing on the screen and are completely confused:
Who is Cloudflare? Why is it that as soon as something goes wrong with it, the global network suddenly goes offline?
This "short-term shutdown" at the network level actually exposed a core hidden danger - we have bet too many key links on the same centralized infrastructure.
1. When the "Internet gatekeepers" fall, the whole world is stuck
Cloudflare is one of the world's largest cloud services and network security infrastructure, providing core services such as CDN acceleration, DDoS prevention, and domain resolution.
Data transmission in 125 countries and 330 cities cannot bypass it.
If the Internet is compared to a highway system, Cloudflare is like a collection of highway toll stations + traffic dispatch + security inspections.
Large platforms rely on it to ensure speed
Small and medium-sized enterprises rely on it to block attacks
Personal websites rely on it to survive
So when it crashes, the result is:
—The websites that rely on it become "invisible" together.
A large number of platforms around the world have abnormal access, and games, information, tool stations, and enterprise backends are in chaos.
At that moment, the Internet truly "pressed the pause button."
This also reveals the essence:
Single node = single point of failure = once it falls, the entire line will fail.
2. Not only the Internet, but also the financial world is subject to "single point risks" every day
Centralized risks are not a problem unique to the technology industry.
The financial industry is actually a more typical example:
It is not uncommon for foreign banks to fail. Users’ funds are handed over to centralized institutions. Once they are not managed properly, they may not be able to redeem them.
On June 3, 2024, Buffett's Berkshire Hathaway plunged 99.97%. The New York Stock Exchange later admitted that this was a technical failure and all related erroneous transactions were invalidated.
Although no real losses were caused this time, it illustrates a very real problem:
Centralized exchanges can invalidate a transaction at any time due to "technical problems."
The New York Stock Exchange will not mess around because of its reputation, but what about those small-scale centralized exchanges with weak supervision?
——"Fat and then kill" is sometimes really just a matter of pressing a button.
3. Why did cryptocurrency come into being? Just to get rid of single point risk
Many people only think of leverage, skyrocketing and plummeting when they mention cryptocurrency.
But Bitcoin was initially promoted because of its decentralized accounting.
Blockchain means:
All transactions are broadcast across the entire network
To commit fraud, more than 50% of the nodes must be convinced
Data can only be appended, not deleted
Transaction records can always be traced
So based on this mechanism, another derivative DeFi (decentralized finance):
It does not rely on banks, intermediaries, or institutional reputations, but relies on smart contracts to complete loans and transactions.
The essence is to extract the "credibility" of finance from people and institutions and hand it over to programs and consensus mechanisms.
4. Web3 is not perfect: but RWA is filling in the key puzzle pieces
Of course, the decentralized world also has its own problems:
Most crypto transactions still rely on centralized exchanges (there is still a single point of risk)
Cryptocurrency prices are highly volatile (stablecoins have been partially solved)
But the industry is changing:
Blockchain is connecting the real world through RWA (real world assets).
When real assets (such as bonds, real estate, commodities, income rights) operate on the chain:
More transparent
Separable
Cross-border
Does not rely on a single institution
Transaction rules are written in smart contracts and cannot be "changed at a moment's notice"
RWA It is a key step to pull the blockchain from the "pure virtual world" to the real economy, and will also become one of the most important new productivity infrastructures in the next few years.
For practitioners, investors, and entrepreneurs, it does not represent a concept, but a fairer, more transparent, and more reliable infrastructure revolution.
Start learning it and understanding it now, and you will see more opportunities in the future.
