Afghanistan internet blackout ’a wake-up call’ for blockchain decentralization

Global
Source: CointelegraphPublished: 10/09/2025, 11:32:01 EDT
DePIN
Blockchain
Internet Censorship
Digital Infrastructure
Geopolitical Risk
Afghanistan internet blackout ’a wake-up call’ for blockchain decentralization

News Summary

Afghanistan's recent nationwide internet outage highlighted a critical vulnerability in leading decentralized blockchains: their dependence on centralized internet providers, which remain susceptible to government intervention and technical failures. The approximately 48-hour shutdown, reportedly ordered by the Taliban administration, affected around 13 million citizens and marked the first nationwide outage under Taliban rule. Concurrently, Iran has also faced internet censorship, including a 13-day shutdown in June amidst its conflict with Israel. Experts argue that the promise of blockchain's censorship resistance and financial freedom cannot be fully realized if connectivity is monopolized by a few centralized providers. This situation is accelerating momentum for Decentralized Physical Infrastructure Network (DePIN) projects, such as Roam Network, World Mobile, and Helium, which aim to build decentralized internet infrastructure to remove single points of control and enhance network resilience.

Background

In early October 2025, Afghanistan experienced a nationwide internet outage lasting approximately 48 hours, reportedly ordered by the Taliban administration, though officials later cited technical issues. This marked the first such nationwide disruption under Taliban rule, following earlier regional restrictions in September. Concurrently, geopolitical tensions in the Middle East, particularly the conflict between Iran and Israel, led to the Iranian government shutting down internet access for 13 days in June 2025. These events underscore the capability of governments to exert control over internet access for censorship and information flow restrictions, posing a fundamental challenge to blockchain technology's aim of providing decentralized and censorship-resistant services.

In-Depth AI Insights

What profound challenges do such internet blackouts pose to the narrative of blockchain decentralization in the current geopolitical landscape? - Amidst heightened global geopolitical tensions under President Trump, there's a growing desire among nation-states to control information. The cases of Afghanistan and Iran demonstrate nation-states' potent ability to sever digital connectivity for their citizens, rendering the theoretical advantage of blockchain as a "censorship-resistant network" vulnerable in practice. Investors must recognize that even if protocols are highly decentralized, blockchain's utility is severely limited if the underlying physical layer (internet access) remains highly centralized. - This "physical layer" vulnerability may lead more countries, especially in emerging markets, to re-evaluate their network sovereignty and data security strategies. For blockchain projects looking to expand in these regions, their technical solutions must be capable of resisting state-level internet control, a challenge far beyond what simple cryptography or consensus mechanisms can address, likely requiring more complex and costly physical infrastructure investments. Does the rise of DePIN projects signal a new paradigm for digital infrastructure investment, and what are the inherent investment risks? - The proliferation of DePIN (Decentralized Physical Infrastructure Network) projects, such as World Mobile and Helium, indeed represents a new investment paradigm where digital infrastructure is built and maintained through token incentives and community participation. They aim to address resilience and accessibility issues of traditional centralized infrastructure, potentially offering connectivity solutions for emerging markets and remote areas. - However, investment risks include: 1) Scalability and Sustainability of Business Models: Can token incentive models sustain complex physical network operations long-term, especially with slower user growth or volatile token values? 2) Regulatory Uncertainty: Decentralized networks may face challenges from traditional telecom regulations and national governments' preferences for "sovereign networks"; 3) Technical Challenges and Market Adoption: The complexity of deploying and maintaining decentralized physical networks at scale, along with user adoption of new technologies, could impact their success. Considering the US's leadership in digital infrastructure, what implications do these international events have for DePIN innovation and investment within the US? - While the US boasts relatively robust internet infrastructure, global internet blackouts serve as a reminder that even mature markets can face network resilience challenges (e.g., natural disasters or cyberattacks). This could spur increased investment from the US government and private sector into domestic DePIN R&D, not only for internal network resilience but also to maintain leadership in global digital infrastructure competition. - The Trump administration's emphasis on technological innovation and American interests could mean potential support for nascent digital infrastructure projects like DePIN, particularly those that enhance national security, data sovereignty, or bolster US influence in global digital standards. This might attract venture capital and strategic investments into US-based DePIN startups, though it could also be accompanied by stricter scrutiny of these technologies for potential national security risks.