For a long time, centralized providers like AWS and GoDaddy have dominated the web hosting industry. And to access them, you would have to pay a monthly fee consistently, hoping your site stays online through traffic spikes and outages. But this might soon change, given the rate at which new technologies like blockchain are changing things. And for those thinking that the influence of these technologies is far-fetched, you might need to think again.
Do you actually know that, according to Research Nester, the Web3-as-a-Service market size has already surpassed $1.08 billion? Looking ahead, the market is expected to rise at a 36.73% CAGR, reaching more than $12 billion by 2035.
Even when you look at crypto prices today, you’ll notice that despite volatility, the underlying blockchain infrastructure is attracting massive adoption. For instance, the Bitcoin price live chat shows BTC has traded between roughly $74,000 and $126,000 in 2025, highlighting a broader market participation than ever before.
And part of the many ways this adoption is manifesting is through Web3 hosting, where blockchain is changing how websites are stored, accessed and monetized. But is this application really practical, or is it just hype waiting to catch up with reality?
Understanding Web3 hosting?
This type of hosting uses a decentralized approach to store and serve websites and decentralized apps (dApps) by distributing data across a peer-to-peer network of nodes. Well, even though traditional systems have been helpful, they have not been without challenges. Take centralization, for instance. When servers on those systems go down, your site goes dark. And this can result in significant losses for online businesses.
A practical example is the recent Cloudflare outage. Can you believe that because of this three-hour incident, businesses lost between $5 billion and $15 billion per hour? Since the server is centralized, just a single point of failure could have such far-reaching consequences.
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But imagine a scenario where your website doesn’t have to depend on a single provider. Instead, your data is distributed across thousands of nodes around the world, each one helping to store and serve your content. Such a system ensures that your site remains accessible, even when some nodes go offline.
The following platforms are making it possible for web owners to enjoy these possibilities:
- InterPlanetary File System (IFS), where files are broken into pieces and distributed across the network
- Arweave, which supports permanent data hosting
- Pinata, which is an IPFS pinning service that allows developers to upload and manage IPFS files more efficiently.
How is Web3 hosting helpful?
Meeting the prevailing need for security
It shouldn’t be surprising that almost everyone is getting concerned about cybersecurity. In fact, Richard Teng, Binance Co-CEO, recently remarked that, “As AI technologies evolve, we will continue to uphold the highest levels of transparency and user protection to strengthen trust across the Web3 industry.” And as you may know, a lack of proper online security measures can really threaten your business’s survival.
After all, no one wouldn’t want to transact with a website whose data could be compromised at any moment. But as much as this is the preference of many people, a good number of websites still succumb to DDoS attacks. These attacks occur when a malicious person overwhelms a server with massive traffic, causing it to crash. And looking at data from gcore.com, you may be surprised to learn that DDoS attacks surged by 41% in 2025 alone.
As cybercriminals advance, the need for more secure frameworks becomes increasingly apparent. This is where blockchain-based hosting comes into place. One way it reduces the risk of DDoS attacks is by eliminating single-point failures. Spreading incoming traffic across diverse servers also comes in handy as it ensures that no single node is overwhelmed. To further strengthen security, decentralized solutions often use strong cryptographic methods to verify identity.
Censorship resistance and improved user control
It was only in 2024 that more than half of the global internet user base (4.8 billion) experienced some form of internet censorship. If that’s not enough, Tech Policy Press says. “70% of the world’s population lives in countries where governments seek to manipulate online content.”
These figures show just how pervasive central control can be. And sometimes it is not for technical reasons but for self-centred interests. That’s why decentralized hosting is becoming attractive, especially for activists and independent journalists who may want to keep their content online without government interference.
With Web3, you’re also in control of your domain and where you store content. It’s not like in traditional systems where hosting providers can limit bandwidth based on pricing tiers or suspend your account without warning. Web3 gives you true ownership and autonomy, putting power back in the hands of creators and users rather than intermediaries.
So, is blockchain-based hosting practical? Well, the answer is a resounding yes! There are several platforms that are already making this innovation feasible, accessible and reliable for real-world use cases. But while Web3 hosting is practical, it’s important to note that adoption is still limited. Only around 80,000 out of 166 million active websites have integrated one or more Web3 technologies. However, when you consider all the advantages it offers, it is more likely that many more institutions will open their doors to this Web3 technology.
