Anthony Pompliano: Amazon could shut down many DeFi apps

The use of cloud services calls into question the decentralisation of the Ethereum network and threatens the operation of DeFi apps, according to Morgan Creek Digital co-founder Anthony Pompliano.

In his view, the biggest problem in this context is the Amazon Web Services (AWS) platform. The owner of the company Jeff Bezos could, if he wished, halt the service and “disconnect most DeFi apps based on Ethereum.”

Jeff Bezos 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!

— Pomp 🌪 (@APompliano) October 7, 2020

“You’re not decentralized if you’re running servers with Uncle Jeff,” Pompliano said.

The founder of the Defiant project Camila Russo acknowledged that Ethereum nodes could indeed be more decentralised. But she doubted the real threat, because not all nodes are hosted by AWS.

Ethereum nodes could definitely be more decentralized. Still, facts don’t support this argument:

Hosting = 70% of eth nodes

*But not all nodes are hosted by the same service*

Amazon = ~37% of hosted nodes

source: https://t.co/lJpmAlTzaH

— Camila Russo (@CamiRusso) October 7, 2020

This is supported by data from the Ethernodes portal: cloud services host 69.5% of nodes, of which only 36.5% are on Amazon.

Source: Ethernodes.

One cryptocurrency investor backed Pompliano. He said that many people refuse to believe such claims because they “invest significant sums in DeFi scams.”

Seeing Pomp get lots of resistance from his tweet, but he’s 100% right.

Many refuse to accept it because they’re likely overly invested into DeFi scams right now.

DeFi = Delusional Finance https://t.co/2zhCGcc5GX

— CryptoWhale (@CryptoWhale) October 7, 2020

In late August, 13% of nodes stopped syncing with the Ethereum network due to a bug in Parity-Ethereum and OpenEthereum versions 2.7 and above. Operators were advised to roll back to an older version or switch to a different client.

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