1. Home
  2. News
  3. Ethereum news
  4. Anthony Pompliano stirs a debate about Popular Dapps on Ethereum running on AWS

Anthony Pompliano stirs a debate about Popular Dapps on Ethereum running on AWS

Photo of: Sangeetha Golchha
by Sangeetha Golchha

Popular Decentralized applications on the Ethereum network could be shut down, as per Anthony Pompliano

A popular crypto investor and a popular podcast host Anthony Pompliano presented a valid point. He said that the Ethereum Network is hosted entirely on Amazon Web services (AWS), the leading cloud-service operated by web giant Amazon. He said the most popular dapps on the network could actually be shut down if AWS was to go downhill and get shut!

It is standard and very well known that cryptocurrencies like BTC and ETH are software pieces. They behave like any web application and have to be hosted in order to be visible to people and continue their operation. On a relative note, Bitcoin is much smaller at 300 gigabytes but the Ethereum network is much larger and harder to host on equipment at home. 

Source: Twitter

The session of discussion began when Pompliano posted a tweet in reference to Amazon’s founder Jeff Bezos. The note on Twitter appeared like a dig at the owner. It read, “[He] could shut down most of these Ethereum-based “DeFi” apps by simply shutting off AWS. You’re not decentralized if you just spin up servers with Uncle Jeff!.” But Camilla Russo, a noted journalist and founder of The Defiant, responded to Pomp’s shortly after his tweet went live. She said, “Ethereum nodes could definitely be more decentralized. Still, facts don’t support this argument.”

Based on what was implied as per Russo’s tweet, Ethernodes data depicts that 70.5% of the Ethereum nodes are actually running on hosted services which are cloud providers. This goes on to show that only 33% of the nodes are actually running on AWS. Talking of Ethereum Network, 23% of the most popular network is on AWS which is less than a quarter. Hence Russo concluded that the AWS chief could never pull a plug on the Ethereum network even if he wanted to. But Pompliano was not a person to be appeased with this, and soon crossed the tweet thread to get comments on whether they thought DeFi applications were decentralized or not. After posting the tweet, Spencer Noon replied:

Source: Twitter

And it was not just for Ethereum, Eric Vorhees the founder of ShapeShift, a crypto trading app also raised a similar argument for Bitcoin. He also tweeted yesterday about the same but in reference to Bitcoin. He said, “Most Bitcoin nodes also run on AWS. Because most servers of all kinds run on AWS.” But his argument was taken down by Alex Thorn who is an investor at Avon Ventures, a huge blockchain venture. He gave his arguments based on the data from Bitnodes which said that Bitcoin Nodes were far more distributed on the network and are mostly run by home users. 

Data shows us otherwise, but in the years of their existence, both Ethereum and Bitcoin have their own share of troupes who side with it at every possible go. The fact that there is a huge layer of competitiveness between it and sides taken by people goes on to prove that even the cryptocurrency market has hints of tribalism in its existence.