Amazon Web Services Outage: Can Decentralized Web3 Systems Hold Up Better?

Amazon Web Services suffered a major outage on Monday, affecting various apps and websites globally. The disruption was linked to a Domain Name System (DNS) issue in the US-East-1 region. While platforms like Coinbase struggled, major blockchains kept working normally. The incident renewed debate about overreliance on big cloud providers and their potential to disrupt entire economies.

Amazon Web Services (AWS) experienced a significant outage on Monday, September 12, 2025, affecting numerous apps and websites globally. The disruption was traced back to a Domain Name System (DNS) issue in the US-East-1 region, highlighting the critical role of cloud infrastructure in modern economies, according to a Tom's Hardware report.

The outage began at around 3:00 AM ET, with AWS reporting increased error rates and latencies for multiple services in the US-East-1 region. By 5:00 AM ET, the company had identified a potential root cause: DNS resolution failures for the DynamoDB API endpoint, which impacted various dependent systems and global services. The Tom's Hardware report described these DNS resolution failures and their broad effects across dependent services.

The incident disrupted services across various sectors, including entertainment, finance, and travel. Major websites and applications such as Disney+, Reddit, McDonald's app, and United Airlines were among those affected. Additionally, cloud-based platforms like Roblox and Fortnite reported disruptions, while major blockchains remained operational, according to a Futunn article.

The outage underscored the potential risks associated with over-reliance on big cloud providers. As AWS serves as the backbone for many critical services, any operational disruption can have far-reaching consequences. This incident has sparked renewed debate about the need for diversification in cloud infrastructure and the importance of resilience in the face of potential outages, as a Benzinga report noted.

AWS has since restored full functionality across all impacted zones, with services returning to normal operation by 6:00 AM ET. However, the incident serves as a reminder of the vulnerabilities inherent in centralized cloud infrastructure and the need for robust contingency plans.