dYdX AWS outage raises decentralization questions
On Tuesday, dYdX, Coinbase, and Binance.The US all went down owing to an AWS outage. Traders had no choice but to wait until the problem was resolved.
The decentralized exchange dYdX (DYDX) had to suspend operations due to an Amazon Web Service (AWS) failure on Tuesday, which raised concerns about the decentralized nature of DeFi protocols' dependence on centralized infrastructure.
Being one of the most frequently utilized cloud services across the globe, with a significant number of decentralized organizations relying on it for their cloud services. AWS provides website owners with servers, networking, email, storage, remote computing, mobile development, and website security.
On Wednesday, dYdX acknowledged in a tweet that depending on a centralized web service such as AWS is problematic. Despite not having mentioned the procedure or any further details, dYDX promised to enhance the true decentralization of its operations:
"Unfortunately, there are still some parts of the exchange that rely on centralized services (AWS in this case). We are deeply committed to fully decentralizing and this remains one of our top priorities as we continue to iterate on the protocol."
The outage affected not only dYDX, but also two major US exchanges, Coinbase and Binance.US experienced this problem as well.
According to Dappradar, dYdX is Ethereum's eighth most popular DeFi app. It has a daily trading volume of roughly $1.5 billion. A KYC system isn't required since it's a decentralized exchange (DEX), and all transactions are settled via smart contracts.
Due to the outage, the dYdX status portal revealed that the team was unable to access crucial back-end components while attempting to fix the issue. As of 9:20 p.m. UTC, this was the situation:
"We are looking into whether we can just have all of those orders cancel, however the AWS outage is preventing us from currently being sure if that's possible."
This outage had consequences for dYDX as every piece of bad news has. According to Coingecko, in the last 24 hours, the dYDX coin has lost roughly 10% of its value, trading at $8.63.
$150 million in USDT was frozen by Tether
A rationale for blacklisting three addresses has not been given by Tether, although it has done so in the past to cooperate with law enforcement and help exchan ...
JAN 14, 2022
Pakistanis have $20 billion in crypto assets
The local association chief said that Pakistanis have $20 billion in crypto assets, and they need to set up a policy for that. ...
DEC 22, 2021
With many parachain deployments, Polkadot anticipates disrupting Web 3.0.
Parachains have been among the greatest achievements of Polkadot and it took Polkadot five years to build them which were auctioned off to teams. ...
DEC 19, 2021
Reddit will go public
Internet forum Reddit Social network announced its plans of going public and it is filing for an IPO. ...
DEC 17, 2021