Questions on the decentralized nature of Ethereum and DeFi have been raised again. This time Bitcoin proponent Anthony Pompliano is the one asking an â€œhonest question.â€
Can uncle Jeff (Amazon CEO Jeff Bezos) shut down most of the Ethereum-based DeFi apps by â€œsimply shutting offâ€ the cloud computing service AWS (Amazon Web Services) or not?
â€œHow many of DeFi projects do you think are actually decentralized right now? Is it 100%? 50%?â€ furtherÂ askedÂ Pomp.
According to the 2019 report from Chainstack, the top ten cloud hosting providers amount to a total of 57% Ethereum nodes, out of which AWS accounts for 25%.
Also, â€œJust because a frontend is hosted on AWS does not mean it can be shut down. The smart contracts can still be interacted with. This is literally the entire point of blockchains,â€ pointed out Spencer Noon, head of the crypto fund DTC Capital.
Although, as Camilla Russo of Defiant said, â€œEthereum nodes could definitely be more decentralized,â€ it needs to be noted that â€œjust because something isn’t the case today doesn’t mean it won’t be in the future.â€
Moreover, â€œMost Bitcoin nodes also run on AWSâ€¦Because most servers of all kinds run on AWS,â€ said Eric Voorhees, CEO of crypto exchange ShapeShift.
However, like @gruble of Blockstream, one can always argue that the â€œdifference is Ethereum needs AWS. You donâ€™t need a $300/mo instance to run a Bitcoin node, thanks to the block size limit. Bezos could crush Ethereum.â€
Not all DeFi projects are completely decentralized, as we most recently saw in the KuCoin hack case when more than 10 cryptocurrency projects froze the stolen funds and did the token swaps.
But some are working hard towards that goal, such as popular DEX Uniswap, the dominant DeFi application which has been growing like crazy. One might think if the government arrested the project creator Hayden Adams, it could be shut down.
But that isnâ€™t really the case as Adams clarify,
â€œItâ€™s an immutable smart contract on Ethereum. I have no ability to turn it off If youâ€™re talking about frontends there are ~50 independent ones Plenty of volume is on-chain and doesnâ€™t go through any frontend I could try tweeting â€œcan everyone please stop tradingâ€ though.â€