Vitalik Buterin Emphasizes Importance of Decentralization and Real-World Use-Cases for DApps

Ethereum co-founder Vitalik Buterin has emphasized the need for decentralized applications (DApps) to serve as a solution to the vulnerabilities exposed by the 2025 Cloudflare outage. The outage, which impacted 20% of websites hosted by Cloudflare and disrupted platforms like Coinbase and Ledger, highlighted the risks of centralized infrastructure. Buterin argued that Ethereum should aim to support applications that run without fraud, censorship, or reliance on third-party services. He said such systems would help preserve user privacy and remain operational even if leading internet service providers face technical failures or security threats according to reports.

The Cloudflare incident followed a separate service interruption at Amazon Web Services (AWS) in October 2025. Combined, these events reignited discussions within the Ethereum community about infrastructure resilience and the need for DApps that can operate independently of centralized services. Buterin described Ethereum as a rebellion against the trend of shifting physical items and digital tools into subscription models that create long-term dependencies. He called for self-running applications that users can trust to function independently according to analysts.

Ethereum researchers Yoav Weiss and Marissa Posner from the Ethereum Foundation echoed Buterin's concerns, warning that decentralization often declines due to convenience according to the report. In a manifesto released in November 2025, they wrote that "Decentralization erodes not through capture, but through convenience. It drifts—automatically, continually—toward dependence on trust." To counteract this trend, Buterin stressed that Ethereum must focus on both usability at scale and maintaining decentralization according to researchers.

Why Did This Happen?

The November 2025 Cloudflare outage was caused by a software failure in the company's bot management system. The malfunction led to several major websites, including those in the crypto sector, being taken offline according to the report. A post-mortem report from Cloudflare confirmed that the disruption was not due to an external attack, but rather an internal issue that exposed vulnerabilities in centralized infrastructure according to the analysis.

This event renewed questions about the reliability of centralized internet infrastructure, especially in the context of blockchain platforms that aim to reduce dependence on third-party services. Buterin argued that Ethereum must build applications that remain stable regardless of changes in companies, ideologies, or political systems. He added that these applications should also protect user privacy and function independently even if major service providers fail according to experts.

How Markets Responded

The Ethereum network has made several technical improvements in 2025, including increased gas limits, improved node software quality, and performance gains in zkEVMs according to data. Buterin acknowledged these strides but warned that the network must continue focusing on its long-term mission of becoming a decentralized, censorship-resistant infrastructure for the internet. He emphasized the importance of applications that continue to function without interference from developers or centralized services according to the report.

Meanwhile, the cryptocurrency market showed mixed reactions to 2025's developments. Investors poured $32 billion into US crypto ETFs, with BlackRock's iShares Ethereum Trust ETF (ETHA) leading with $12.6 billion in inflows. However, Ethereum's price volatility remained a concern, with the total cryptocurrency market capitalization excluding Bitcoin reaching $1.19 trillion by the end of 2025 according to analysis. Analysts remain divided on Ethereum's 2026 price prospects, with some predicting record highs and others forecasting a correction before a rebound according to forecasts.

What Analysts Are Watching

Buterin's comments highlight the ongoing debate about Ethereum's direction as it moves toward its 2026 goals. While technical progress has improved speed and reliability, the co-founder stressed that usability and decentralization must advance together for Ethereum to fulfill its vision of becoming a "world computer" according to experts. He also warned against chasing short-term trends or narratives that dilute the network's core mission according to analysts.

Ethereum researchers and analysts continue to monitor how the network balances scalability with decentralization. The co-founder also emphasized the need for applications that pass the "walkaway test" — ensuring they remain functional even if their original developers or maintainers are no longer involved according to experts. This test is seen as a critical standard for Ethereum to achieve its long-term goals in finance, identity, and governance according to researchers.

The Ethereum community remains focused on advancing zkEVMs, PeerDAS, and other tools that can enhance the blockchain's capabilities. However, Buterin and other researchers stress that these advancements must be applied effectively to support real-world use cases and maintain the network's resilience according to the report.