April 19, 2024
Microsoft, Tencent, and tech giants unite in Decentralized Infura Network
Latest Cryptocurrency News

Microsoft, Tencent Power Up Decentralized Infura Network

Microsoft, Tencent, and 16 other major Web2 players have joined forces with Consensys to support the decentralization of the Infura network, a crucial entry point for Ethereum in the decentralized finance (DeFi) sector. The collaboration aims to enhance decentralization on Infura, crucial for preventing outages in Web3 services like the MetaMask wallet that rely on it.

Consensys senior product manager Andrew Breslin emphasized that the significance of these partnerships lies in these influential firms uniting to decentralize every layer of the blockchain infrastructure stack. The Decentralized Infura Network (DIN), set for launch in Q4, addresses the centralization issue of Infura, which is currently controlled by Consensys, creating a single point of failure.

Breslin explained that the DIN addresses the limitations of partnering with Infura due to the cost and complexity of its services. The DIN’s initial key feature is failover support for the Ethereum and Polygon networks, allowing traffic to be redirected to one or multiple DIN partners in the event of an outage, ensuring higher uptime rates.

Upon launch, the DIN aims to provide more reliable and censorship-resistant access to Ethereum, eliminating the dependence on a single service provider. Infura, developed by Consensys, currently serves as the access point for most DApps to access real-time on-chain data from the Ethereum blockchain.

The centralization issue gained attention in November 2020 when the MetaMask wallet experienced downtime due to an Infura outage, affecting centralized exchanges and DeFi projects. Decentralizing data providers on the Infura network is crucial for long-term censorship resistance, as centralized providers can be easily shut down with a targeted attack or legal action.

Breslin highlighted that the current lineup of partners is not final, expressing openness to other highly reliable internet infrastructure providers joining the DIN. The newly announced partners, including Tech giants like Microsoft and Tencent, are collaborating with Infura during the “federated phase” of the DIN, a temporary trial period where the network remains centralized.

Looking ahead, Breslin envisions the DIN being governed as a decentralized autonomous organization or a similar governance structure, ensuring each partner has a democratically weighted influence on the network’s direction.

Image by rawpixel.com on Freepik

Related posts

SEC Rejects Coinbase’s Call For Crypto Regulations

Robert Paul

Celsius Cryptocurrency Lender Approaches Crucial Vote to Sell Assets Amid Recovery Prospects

Cheryl  Lee

Digital Asset Investments Soar, Reaching Highest Levels Since July 2023: Report

Anna Garcia

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More