Ethereum was not created to streamline finance or make apps handy. It was designed to set folks free.
This line within the Trustless Manifesto drew criticism on the time of its publication, and Vitalik Buterin reiterated it on January fifth.
Dialogue: Ethereum’s mission is basically completely different from the effectivity recreation through which DeFi protocols compete. The aim is to not scale back yields from 4.5% vs. 5.3%, or scale back latency from 473ms to 368ms, or scale back signups from 3 clicks to 1 click on.
Ethereum’s recreation is resilience. It is about avoiding general loss if the infrastructure collapses, the federal government turns into hostile, or the developer disappears. Resilience signifies that 2,000ms of latency stays 2,000ms even when Cloudflare fails, a sponsor declares chapter, or a consumer is faraway from the platform.
Resilience continues to be a first-class participant, no matter geography or politics.
That is necessary as a result of Ethereum locks in practically $74 billion in good contract worth and over 65% of tokenized real-world property in Layer 1 alone.
However the system designed to be the world’s pc rests on a surprisingly fragile stack of centralized chokepoints.
The consensus protocol continued to finalize blocks, however an outdated consumer of the RPC supplier brought on the alternate to crash. The blockchain continued to function, however the CDN went down and half of the ecosystem went offline.
Stopping catastrophe reasonably than optimizing yield
A latest report quantifies that threat. Infrastructure failures trigger 5.7 instances bigger volatility shocks than regulatory bulletins throughout main crypto property. Tail dangers equivalent to full lack of entry, everlasting lock-up of funds, and community outages outweigh elevated income.
A protocol that gives a 5.3% yield is nugatory if a configuration error can destroy your infrastructure.
Vitalik Buterin’s composition captures this. Resilience is not about how briskly all the things works, it is about whether or not your software will run in any respect in case your infrastructure supplier disappears or your internet hosting platform leaves your platform.
Ethereum’s 2,000ms latency could also be slower than Web2, however it should proceed to ship even when the Web2 system goes fully down.
Nonetheless, Ethereum’s promise of resilience faces sensible checks.
In November 2020, Infura, the default RPC supplier for MetaMask and most DeFi apps, ran an older Geth consumer that was forked from the canonical chain.
Exchanges stopped Ethereum withdrawals, Explorer confirmed inconsistent states, and MakerDAO and Uniswap broke for customers.
Though the bugs themselves have been mounted and various RPC implementations are in progress, centralization continues to be the norm. It is not simply Infura, it is extra of a “small cartel”.
The protocol labored, however the connection level failed.
In November 2025, a Cloudflare configuration error introduced down roughly 20% of our internet site visitors, together with Arbiscan, DefiLlama, and a number of Alternate and DeFi frontends. Ethereum continued processing blocks. Consumer couldn’t entry.
Through the epitaph growth of 2024, Arbitrum’s single sequencer was down for 78 minutes. No transactions have been processed and no batches have been posted to Ethereum.
Arbitrum, Optimism, Base, and zkSync all at the moment depend on a single centralized sequencer. Though the decentralized base layer labored appropriately, the centralized infrastructure prevented customers from benefiting.
| layer | present dependencies | Vulnerability indicators | resilient alternate options |
|---|---|---|---|
| Entry/RPC | Infrastructure, Alchemy, Quicknode; MetaMask default is Infura | As much as 90% of Web3 app site visitors. November 2020 Infura outage halts ETH withdrawals and breaks MetaMask, MakerDAO, and Uniswap | Comes normal with a number of RPC suppliers, native gentle shoppers, and stateless shoppers. RPC range as a user-facing characteristic |
| relay/builder | MEV-Increase relays (Extremely Sound, Titan, bloXroute) mediate over 90% of blocks | 4 relays management >85% of proposals. Titan, Beaverbuild, Rsync generate >80% of builder blocks | Elevated relaying by separate entities. Relay neutrality. Holy PBS, Blockspace would not cease on account of relay failure |
| L2 sequence | Single Sequencer (Arbitrum Basis, Optimism Basis, Coinbase for Base) | Arbitrum: 78 minutes of downtime. Base will get 70.9% of L2 revenue, Arbitrum will get 14.9%, Optimism will get 5.4% | Distributed sequencer set or L1 fallback. Power inclusion if the sequencer censors it. Tracks beneath single management % L2 TVL |
| DNS/CDN | Cloudflare for DNS, TLS, and dApp caching | Cloudflare powers about 20% of the world’s internet. Arbiscan, DefiLlama, and alternate/DeFi frontends can be down on account of service outage in November 2025 | IPFS/Arweave with ENS fallback. Multi-CDN. Pockets invocation contract with out internet entrance finish |
| Fundamental protocol | Ethereum consensus (Lighthouse 52.65%, Prysm 17.66%). Execution (Geth ~41%, Nethermind 38%) | September 2025 Reth bug brings down 5.4% of nodes. Range precluded widespread affect. | No consumer has a share higher than 33%. dwelling staking. Decrease associated failures. Simple gentle/stateless consumer validation |
The underlying protocol displays true resiliency with a number of shoppers, a whole lot of 1000’s of validators, and proof-of-stake that spreads threat throughout completely different codebases.
When Reth encountered a bug in September 2025, 5.4% of its nodes went down, however Geth, Nethermind, and Besu continued, so community continuity was maintained. Consumer range labored.
The issue is centered on the above. RPC entry, relays, sequencers, and internet entrance ends introduce dependencies that disable consumer entry even when the bottom layer is practical.
That is the place Ethereum’s resilience breaks down. It is not about encryption or consensus, it is concerning the scaffolding that connects customers to the protocol.
Centralized sequencer as an financial bottleneck
Layer 2 sequencers centralize each management and advantages. Base constantly captured greater than 50% of all rollup earnings all through 2025, adopted by Arbitrum.
The Arbitrum sequencer is operated by the Arbitrum Basis, the Optimism sequencer is operated by the Optimism Basis, the Base sequencer is operated by Coinbase, and the zkSync sequencer is centrally managed.
In consequence, greater than 80% of the charges collected by Ethereum’s Layer 2 in 2025 flowed to blockchains with centralized sequencers.
A technical path exists. A shared sequencer community like Espresso, or a rollup based mostly on returning sequences to an Ethereum validator. Astoria tried the same design, however closed in 2025.
The hole is financial, not technological. A centralized sequencer gives a greater UX and generates important income. To extend resiliency, you need to settle for {that a} sequencer that can’t be shut down by a single operator will outweigh the millisecond enchancment of single-point management, though will probably be barely slower to verify.
RPC and CDN dependencies
MetaMask defaults to Infura. In line with the report, most Web3 purposes use Infura, Alchemy, or QuickNode.
The Infura incident in November 2020 demonstrated that protocol-level resiliency turns into meaningless when the entry layer fails.
Cloudflare’s November 2025 outage revealed how dependent “decentralized finance” is on one firm’s CDN. Ethereum processed the block efficiently, however customers have been unable to entry the frontend, explorer, or dashboard.
Resilient alternate options embody wallets that use a number of RPCs by default, native gentle shoppers, distributed storage on IPFS or Arweave, ENS addressing, and multi-CDN deployments.
Nevertheless, these come at a value, equivalent to elevated complexity, elevated bandwidth necessities, and elevated administration complexity.
Most initiatives select comfort, so trade-offs with effectivity are necessary. Ethereum’s base layer gives survival properties, however the ecosystem virtually at all times wraps them with dependencies that reintroduce any vulnerabilities.
the precise trade-off
The worth proposition for Ethereum that Buterin frames will not be sooner, cheaper, or extra handy. It really works even when all the things else is damaged.
This requires infrastructure selections that prioritize survival over optimization. This implies a number of consumer implementations if technically higher, numerous RPC suppliers if latency is healthier, distributed sequencers if a centralized operator gives sooner confirmations, and distributed frontends if centralized internet hosting is less complicated.
The trade has not accepted this trade-off. Rollups optimize the UX and settle for the dangers of a single sequencer. Purposes use handy RPC by default and settle for focus dangers. The frontend is deployed on a industrial CDN and tolerates single vendor failure.
The selection is to construct in case Cloudflare, Infura, and Coinbase all proceed to work, or construct in case they do not.
Ethereum’s base layer permits for the second choice. The encircling ecosystem overwhelmingly creates the primary.
The protocol gives 2,000ms of latency and persists by infrastructure failures, platform decommissions, and geopolitical turmoil.
Whether or not somebody builds a system that truly leverages that property, reasonably than wrapping it in dependencies that reintroduce all of the vulnerabilities that Ethereum was designed to eradicate, will decide whether or not resilience turns into a actuality or stays theoretical.
Block house is plentiful. A decentralized, permissionless, resilient blockspace will not be.
