Dominic Williams, founder and chief scientist of the Dfinity Foundation, has underscored the importance of decentralized applications (DApps) running completely onchain to safeguard against security threats. According to Cointelegraph, Williams highlighted the vulnerabilities that arise when blockchain projects rely on centralized web services like Amazon Web Services (AWS), citing the recent Bybit hack as a significant example.
Despite integrating onchain tokenomics, many blockchain projects still depend on centralized infrastructure, exposing them to cyber threats. Williams emphasized that the core strength of blockchain technology is its ability to ensure software logic executes accurately using onchain data—something traditional IT systems cannot guarantee.
Williams also criticized the industry’s shift from its original vision, where projects are labeled as onchain despite partial reliance on centralized services. He proposed that code updates should be governed by decentralized autonomous organizations (DAOs) with community oversight rather than controlled by individual developers. The Internet Computer Protocol, supported by the Dfinity Foundation, facilitates complete onchain hosting of applications via smart contracts, preserving data integrity.
The financial impact of centralized security breaches was another major concern raised by Williams. He pointed to the $1.4 billion Bybit hack as a key event affecting the crypto market. According to Williams, state-sponsored hacking groups, such as Lazarus, effectively launder stolen funds, transferring them out of the crypto ecosystem and destabilizing the market.
Following the Bybit incident, the total cryptocurrency market capitalization plunged from approximately $3.62 trillion in January 2025 to $2.8 trillion. This downturn was driven by the hack—the largest in crypto history—combined with macroeconomic uncertainty and declining investor confidence. Bohdan Opryshko, Chief Operating Officer of Everstake, further noted that institutional investors are now moving away from centralized platforms due to increasing cybersecurity concerns.
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