Infrastructure Projects
The essential services powering the crypto ecosystem
The Invisible Layer
Behind the apps and tokens you interact with lies essential infrastructure—services that make everything else work. These projects often get less attention but are critical to the ecosystem's function.
Understanding infrastructure helps you appreciate what makes applications possible and where systemic risks might exist.
Key Infrastructure Categories
Oracles: Bring real-world data onto the blockchain. Chainlink dominates this space. DeFi protocols rely on oracles for price feeds—if oracles fail, protocols can be exploited.
Indexers: Make blockchain data queryable. The Graph indexes blockchain events so applications can efficiently search and display data.
Node providers: Run blockchain nodes so developers don't have to. Infura, Alchemy, and others provide API access to blockchain data.
Bridges: Enable asset transfers between blockchains. Essential for multi-chain but historically a major attack vector.
Storage and Compute
Decentralized storage: IPFS, Filecoin, and Arweave store data in decentralized networks. NFT images and dApp front-ends often use these.
Decentralized compute: Projects like Render Network or Akash provide computing power through distributed networks. Still emerging.
Identity solutions: ENS (Ethereum Name Service) provides human-readable names for addresses. Other projects work on broader identity and reputation systems.
Security Infrastructure
Auditing firms: Companies that review smart contract code for vulnerabilities. Trail of Bits, OpenZeppelin, and others. Audits reduce but don't eliminate risk.
Bug bounties: Protocols pay hackers who responsibly disclose vulnerabilities. Immunefi hosts many bounty programs.
Insurance protocols: Nexus Mutual and others offer coverage against smart contract failures. Limited capacity and coverage.
Why Infrastructure Matters
- Applications depend on reliable infrastructure to function
- Centralized infrastructure creates systemic risk points
- Infrastructure failures can affect the entire ecosystem
- Understanding dependencies helps assess protocol risk
Infrastructure Risks
- •Centralized node providers create single points of failure
- •Oracle manipulation can cascade into protocol exploits
- •Bridge hacks have caused billions in losses
- •Decentralized storage depends on economic incentives continuing
- •Infrastructure tokens may not capture value from usage
Key Takeaways
- Infrastructure powers the applications you see and use
- Oracles, indexers, and node providers are essential services
- Bridges enable multi-chain but are major security risks
- Decentralized storage hosts NFT content and dApp interfaces
- Check what infrastructure a protocol depends on to assess risk