Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Tech’s Progress Dilemma: Expansion and Risks Evolve Side by Side

Tech’s Progress Dilemma: Expansion and Risks Evolve Side by Side

Bitget-RWA2025/11/19 14:58
By:Bitget-RWA

- Cloudflare and Akamai show tech sector's growth in cloud/AI but face valuation concerns amid slowing markets. - Recent Cloudflare outage exposed centralized infrastructure risks, disproportionately affecting smaller platforms. - CEO Prince warns AI replacing junior staff could harm innovation, emphasizing human-AI collaboration's value. - Web3 projects grapple with balancing decentralized protocols against centralized CDN/DNS dependencies in user-facing layers. - Industry must reconcile rapid innovation

The technology industry continues to be a contradictory force, driving both advancement and exposing new weaknesses at the same time.

(NET) and (AKAM) are prime examples of this contrast, as they demonstrate expansion in cloud platforms and AI integration, yet face scrutiny over their valuations and operational stability. At the same time, Web3 projects are advocating for decentralized finance, but centralized points of failure—highlighted by a recent Cloudflare disruption— .

Cloudflare’s results for the third quarter highlight its ability to withstand a slowing technology market. The company’s revenue climbed 31% year-over-year to $562 million, and non-GAAP operating income reached $85.9 million, representing a 15.3% margin—

. Its AI inference service, introduced in 2023, has fueled greater demand for secure cloud offerings, mirroring broader sector movements. Still, some analysts warn that maintaining a 30% growth rate on a larger revenue base may not support its current valuation, with one analyst despite Cloudflare’s strong performance. Likewise, Akamai’s 5% revenue increase to $1.05 billion signals a pivot toward cybersecurity and cloud, but falls short of expectations, with shares valued at a price-to-sales ratio of 2.9— . Although profits remain solid, the company’s slow revenue growth underscores the difficulties in moving away from traditional content delivery models.

The convergence of artificial intelligence and workforce trends adds further complexity.

Tech’s Progress Dilemma: Expansion and Risks Evolve Side by Side image 0
Cloudflare CEO Matthew Prince recently highlighted the value of keeping junior employees, cautioning that substituting early-career staff with AI could trigger a “talent doom cycle.” He stressed that younger workers bring new ideas and are essential for reverse mentoring in AI adoption— . This viewpoint stands in contrast to the industry’s broader push for automation, as companies weigh productivity improvements against the potential loss of institutional expertise and creative capacity.

The latest Cloudflare service interruption brought to light weaknesses that go beyond technological optimism. A “latent bug” in the company’s bot mitigation system led to widespread outages, resulting in 500 errors on platforms such as X (Twitter), ChatGPT, and Coinbase—

. The event demonstrated the internet’s dependence on centralized infrastructure, with smaller services suffering more than major players like Google and Amazon. As one analyst observed, “a single vendor’s breakdown can trigger a widespread outage,” between decentralized blockchain ideals and real-world reliance on centralized systems.

The incident has revived discussions about redundancy in crypto infrastructure. While many projects focus on decentralized protocols, their user interfaces often rely on centralized CDNs and DNS services. This creates a “chokepoint” risk: even if a blockchain is distributed across thousands of nodes, a single CDN failure can cut off access to vital applications—

. For crypto developers, the challenge is to find a balance between cost-effectiveness and robustness—whether by using multiple CDNs, alternative DNS options, or hosting their own solutions.

As the sector deals with these issues, moving forward will require balancing innovation with systemic risk. Cloudflare’s 30% revenue growth and Web3’s experiments in governance showcase the industry’s promise, but the recent outage and valuation debates are reminders that advancement is not guaranteed. In an era where technology increasingly defines global connections, the boundary between progress and risk becomes ever more delicate.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Bitcoin Leverage Liquidations Spike at End of 2025: An Urgent Reminder for Effective Risk Control in Cryptocurrency Trading

- Bitcoin's 2025 price crash triggered $2B in leveraged liquidations, marking crypto's worst crisis as $126k→$82k swings exposed systemic risks. - 392,000 traders lost $960M in 24 hours due to 10x leverage products, thin liquidity, and algorithmic selling during the November 20-21 collapse. - Experts now recommend 3-5x leverage caps, diversified positions, and hedging tools like options to mitigate risks after the crisis revealed crypto-traditional market interdependencies. - Regulatory scrutiny intensifie

Bitget-RWA2025/11/23 00:26

Chainlink's cross-chain bridges drive a $35 billion boom in tokenized finance

- Grayscale files to convert its $29M Chainlink Trust into a staking-enabled ETF (GLNK), positioning LINK as crypto infrastructure. - Chainlink's CCIP bridges traditional finance and blockchain via cross-chain interoperability, recently collaborating with J.P. Morgan and Ondo Finance. - The tokenized assets market is projected to grow to $35B, with Chainlink addressing compliance and data transfer challenges in decentralized finance. - Strategic integrations with S&P Global and Bittensor's AI networks high

Bitget-RWA2025/11/23 00:10
Chainlink's cross-chain bridges drive a $35 billion boom in tokenized finance

Bitcoin Updates: Trump Urges Rate Cuts While Fed Remains Cautious—Bitcoin Drops Into Bear Market

- Trump pressures Fed for aggressive rate cuts, joking about firing Bessent if rates remain high, risking policy instability. - Bitcoin enters "most bearish" phase with Bull Score at 20/100, price below $102,600 as institutional demand wanes. - Fed chair replacement process nears conclusion, with potential impacts on crypto markets and global capital flows. - India debates stablecoin regulation while Leverage Shares plans 3x crypto ETFs, reflecting volatile market dynamics. - Bitcoin's $200,000 trajectory

Bitget-RWA2025/11/22 23:52
Bitcoin Updates: Trump Urges Rate Cuts While Fed Remains Cautious—Bitcoin Drops Into Bear Market

Fed's Change in Liquidity Fuels Debate: AI Breakthrough or Speculative Frenzy?

- The Fed's halt of QT by December 1, 2025, risks injecting trillions into AI markets, reigniting speculative concerns amid record $57B Nvidia quarterly revenue. - AI infrastructure spending surges with FEDGPU's GPU clusters and Gartner projecting $2 trillion global AI spending by 2026. - Skeptics warn of debt-driven overinvestment, citing Meta/Oracle stock declines and unproven economic returns despite "depth and breadth" of AI innovation claims. - Historical parallels to the dot-com bubble emerge as anal

Bitget-RWA2025/11/22 23:52
Fed's Change in Liquidity Fuels Debate: AI Breakthrough or Speculative Frenzy?