At the heart of the Web3 revolution lies a fundamental debate over the role of centralized cloud providers in the decentralized computing landscape. This tension came to a head at Consensus Hong Kong 2026, where Leo Fan, the founder of Cysic, a decentralized compute platform, openly questioned the use of Google Cloud and Azure by Midnight, a project under the Cardano ecosystem. This sparked a heated exchange with Charles Hoskinson, the founder of Cardano, who staunchly defended the necessity of these partnerships.
The Case for Decentralization
Leo Fan, a staunch advocate for true decentralization, argued that relying on hyperscalers like Google and Microsoft undermines the core principles of Web3. ‘If we want to build a truly decentralized future, we cannot depend on centralized entities that can be compromised or regulated,’ Fan stated. He emphasized that decentralized compute platforms should be built on a network of peer-to-peer nodes, ensuring that no single entity has control over the system.
The Pragmatic Approach
Charles Hoskinson, on the other hand, took a more pragmatic stance. He argued that partnerships with hyperscalers are essential for scaling and providing the necessary infrastructure to support the growing demands of the Web3 ecosystem. ‘We need to leverage the best tools available to us,’ Hoskinson said. ‘Google Cloud and Azure offer the reliability, security, and scalability that we need to build robust decentralized applications.’
The Broader Implications
The debate between Fan and Hoskinson highlights a broader issue in the Web3 community: the balance between ideological purity and practical necessity. While many in the community champion the idea of a fully decentralized world, the reality is that building such a system is incredibly challenging. Centralized cloud providers offer a level of performance and reliability that is difficult to match with current decentralized technologies.
However, this reliance on centralized infrastructure also raises concerns about censorship, data privacy, and regulatory compliance. ‘If we build our decentralized applications on centralized clouds, we are essentially creating a backdoor for governments and corporations to control our systems,’ Fan warned. ‘This is a dangerous precedent that could undermine the very foundations of Web3.’
Looking Forward
As the Web3 ecosystem continues to evolve, the debate over the role of centralized cloud providers is likely to intensify. Projects like Cysic are pushing the boundaries of what is possible with decentralized compute, while platforms like Cardano are leveraging existing infrastructure to deliver immediate value. The key will be finding a middle ground that satisfies both the ideological and practical needs of the community.
In the end, the future of decentralized computing may lie in a hybrid approach that combines the strengths of both decentralized and centralized systems. ‘We need to be open to innovative solutions that can bridge the gap between the two worlds,’ Hoskinson concluded. ‘Only then can we truly realize the full potential of Web3.’
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