Bitget App
Trade smarter
MarketsTradeFuturesEarnSquareMore
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.

You may also like

Bitcoin Update: Federal Reserve's Balancing Act and Death Cross Indicate Extended Bitcoin Downturn

- Bitcoin fell below $91,000 amid $3B ETF outflows, technical "death cross" signals, and shifting Fed policy expectations. - BlackRock's IBIT saw record $523M outflows, while Mubadala tripled Bitcoin holdings despite market volatility. - Fed officials split on December rate cuts (46% chance now vs. 93.7% earlier), with Waller citing weak labor markets. - Stablecoin balances hit 11-month lows, Nansen traders added $5.7M short positions, and XRP derivatives stagnated. - Bitcoin and Ethereum entered technical

Bitget-RWA2025/11/19 17:40
Bitcoin Update: Federal Reserve's Balancing Act and Death Cross Indicate Extended Bitcoin Downturn

Hyperliquid News Today: Individual Investors Drive Equity Perpetuals Amid Heightened Risk Discussions

- Market participants advocate unrestricted stock leveraged perpetuals as a simpler alternative to 0DTE options, citing growing retail demand for leveraged equity exposure. - Decentralized platforms like trade.xyz and Felix dominate equity perpetuals trading, with Nasdaq 100 perpetuals generating $75M daily volume versus $5.5M on Ostium. - SafePal integrates Hyperliquid's perpetuals exchange into its wallet, reflecting DeFi's hybrid CeFi-DeFi evolution and expanding tokenized asset risk products. - Recent

Bitget-RWA2025/11/19 17:40
Hyperliquid News Today: Individual Investors Drive Equity Perpetuals Amid Heightened Risk Discussions

Solana News Update: Solana's Swift Growth: Will Advancements Surpass Security Obstacles?

- Solana emerges as a high-performance Ethereum alternative, gaining traction in DeFi and Web3 due to scalability and low fees. - 21Shares launches a regulated Solana ETF (TSOL), offering institutional access but exposing investors to volatility and smart contract risks. - Bitcoin Munari (BTCM) aims to build institutional-grade Solana infrastructure with EVM compatibility and delegated proof-of-stake by 2027. - Despite growth, Solana faces network congestion and security challenges, though regulated produc

Bitget-RWA2025/11/19 17:40
Solana News Update: Solana's Swift Growth: Will Advancements Surpass Security Obstacles?

Bitcoin Updates Today: The Future of Bitcoin Miners in 2026 Depends on Competing with AI for Control Over Energy Resources

- Bitcoin miners face 2026 survival challenges as energy costs rise and AI data centers compete for cheap power, with U.S. wholesale electricity projected to increase 8.5%. - Structural risks like power contracts and mining pool concentration (6 pools control 95% of block production) threaten industry stability alongside capital-intensive expansion. - Federal policy gaps contrast with state-level initiatives (e.g., Texas) while firms pivot to AI/HPC, with mixed results as seen in Bit Digital's earnings and

Bitget-RWA2025/11/19 17:40
Bitcoin Updates Today: The Future of Bitcoin Miners in 2026 Depends on Competing with AI for Control Over Energy Resources