Crypto

AWS Outage Affects dYdX, Causing Decentralization Worries

AWS Outage Affects dYdX, Causing Decentralization Worries

AWS Outage Affects dYdX, Causing Decentralization Worries.

Traders had no choice but to wait on December 7, 2021, when dYdX, Binance.US, and Coinbase all went down owing to an AWS issue.

On December 7, 2021, the decentralized exchange dYdX was forced to shut down due to an Amazon Web Service (AWS) failure, raising concerns about DeFi protocols’ dependency on centralized services.

Amazon Web Service (AWS) is one of the world’s most popular cloud services, with a significant proportion of decentralized infrastructure using it. Servers, storage, networking, remote computing, email, mobile development, and website security are all available through AWS.

On December 8, 2021, dYdX posted a Twitter update, admitting that their reliance on a centralized web service like AWS is problematic. It stated that it would increase actual decentralization of operations, but did not specify how.

“Unfortunately, several aspects of the exchange continue to rely on centralized services” (Amazon Web Services in this case). We are dedicated to fully decentralizing the protocol, and it remains one of our top goals as we iterate on it.”

Binance is a centralized exchange (CEX).

Due to the AWS outage, service was also disrupted in the United States and on Coinbase.

According to Dappradar, dYdX is the 11th most popular DeFi app on the Ethereum Network. It has a daily trading volume of roughly $1.5 billion. It does not require a know-your-customer (KYC) protocol and settles all transactions using smart contracts as a decentralized exchange (DEX).

According to updates on the dydx status site, the team was unable to access crucial aspects of its back end owing to the outage while attempting to resolve the issue. At 9:20 p.m. UTC, the status was as follows:

“We’re investigating if we can just cancel all of those purchases, but the AWS outage is preventing us from knowing for sure right now.”

According to Coingecko, the dYdX coin has dropped roughly 10% in the last 24 hours, trading at $8.63.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.