Microsoft, Tencent, and Other Tech Giants Join Forces to Decentralize Infura Network

New Partnerships Aim to Increase Decentralization and Prevent Outages

Microsoft, Tencent, and 16 other major tech companies have teamed up with Consensys to decentralize the Infura network, a critical access point to Ethereum for the decentralized finance (DeFi) sector. The partnerships are aimed at increasing decentralization on the Infura network to prevent outages of the Web3 services that rely on it, including MetaMask, a popular wallet service.

The Launch of the Decentralized Infura Network (DIN)

Consensys plans to launch the Decentralized Infura Network (DIN) in Q4 as a solution to the problem of centralization on the Infura network, which is currently controlled by Consensys, creating a single point of failure. DIN will allow for failover support, meaning that traffic can be re-routed to other DIN partners in the event of an outage, resulting in higher uptime rates.

Benefits of Decentralization for Ethereum Access

With the launch of DIN, decentralized applications (DApps) will have more reliable and censorship-resistant access to Ethereum. DApps will no longer rely on a single service provider in one location, enhancing accessibility and availability.

Infura's Role and the Need for Decentralization

Infura, developed by Consensys, provides API access to the Ethereum and IPFS networks. It serves as the access point for most DApps to access real-time on-chain data from the Ethereum blockchain. The need for decentralization became evident in November 2020 when the MetaMask wallet experienced downtime due to an outage on Infura. Centralized data providers like Infura can be vulnerable to shutdowns through attacks or legal actions, highlighting the importance of decentralization.

Expanding the DIN Partnership

While the current lineup of partners is not final, Infura is actively seeking collaboration with other highly reliable internet infrastructure providers to join the DIN. The success of DIN relies on expanding and collaborating with more operators over time.

The Federated Phase and Future Governance

The current phase of DIN is referred to as the "federated phase," where the network remains centralized. In the future, Consensys aims to establish a decentralized autonomous organization or another governance structure that ensures each partner has a say in the network's direction.