Crypto's Infrastructure Paradox: Why DAOs Must Own Physical Assets

🏗️ Crypto's Foundation Problem

By Gitcoin
Nov 17, 2025, 2:57 PM
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The Decentralization Dilemma

For ten years, crypto has built decentralized applications on centralized cloud infrastructure - a fundamental contradiction that undermines true decentralization.​

The Current Reality:

  • 65% of Ethereum nodes run in centralized data centers
  • AWS hosts over 50% of hosted Ethereum nodes
  • 3 major cloud providers control 69% of all hosted blockchain nodes

The Solution: Physical Ownership

@ethereumJoseph argues that crypto must now take control of its physical foundations through DAO-driven infrastructure ownership:

  • Energy - Power generation and distribution
  • Chips - Semiconductor manufacturing
  • Water - Cooling and operational resources
  • Land - Physical locations for infrastructure

Market Growth

The blockchain infrastructure market is expanding rapidly from $1.​5B in 2024 to a projected $10.​8B by 2033.​

The Path Forward

True web3 requires decentralization at every layer - not just consensus mechanisms, but the entire physical infrastructure stack.​ DAOs represent the organizational structure needed to collectively own and operate these critical resources.​

This shift from renting centralized services to owning decentralized infrastructure could define the next decade of crypto development.​

Sources
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