A decentralized version of Infura, the access point for most DApps to access real-time on-chain data from the Ethereum blockchain, is set to be launched by the end of the year. ConsenSys, the company behind Infura, plans to include major Web2 cloud providers in the network. This move aims to address the single point of failure issue since Infura is currently controlled solely by ConsenSys. The launch will be followed by a trial period, lasting approximately six months, to test the network's performance under centralized control.
Decentralization for Reliability and Censorship Resistance
Infura's centralized nature posed significant challenges, as demonstrated when the MetaMask wallet stopped working due to Infura going down. Centralized exchanges and DeFi projects were also affected. Moreover, Infura faced criticism for complying with U.S. sanctions against Tornado Cash. However, being a U.S.-based company, ConsenSys had limited options.
To address these issues, ConsenSys is in the process of creating a decentralized marketplace consisting of up to five different data providers. These providers will play a similar role to Infura but will be distributed globally. Infura will become just one of the providers in the network. This decentralization will enhance the reliability and censorship resistance of accessing Ethereum, as DApps will no longer have to rely on a single data service provider in one jurisdiction.
Building a Regulator-Resistant Architecture
The ultimate goal is to establish a TCP/IP-like architecture for Web3 that cannot be easily regulated. While TCP/IP itself is not subject to regulation, the service providers can be. ConsenSys aims to create a new paradigm shift in Web3 and drive the adoption of this architecture.
The initiative has attracted interest from both crypto native companies and major Web2 cloud providers. These providers recognize the potential business opportunities that decentralized Infura can bring in the future. However, it has not been confirmed whether Google Cloud or AWS are specifically in negotiations with ConsenSys.
Federated Stage and Transition to a Permissionless Marketplace
Before transitioning to a fully decentralized network of data providers, a federated stage is crucial to resolve any issues and ensure the system's proper functioning. It is yet to be determined whether ConsenSys or a new entity will have centralized control during this stage. The transition to a permissionless marketplace of data providers is expected to occur sometime in 2024.
Preventing Monopolies and Safeguarding Web3 Wallets
The decentralization of Infura's data providers is essential to prevent monopolies from being halted by a single court order. This is particularly important for Web3 wallets, like MetaMask, that heavily rely on Infura for data access. Failure to address this vulnerability could have severe consequences for the Web3 ecosystem.
The decentralized version of Infura could be governed either by a decentralized autonomous organization (DAO) or a foundation, according to Simon Morris, ConsenSys Head of Strategy.
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