Coinbase, Binance.US and dYdX will be added due to the AWS shutdown

Today (December 8th) the decentralized futures exchange dYdX report that the Amazon Web Services (AWS) provider has failed, resulting in the user interface not loading.

“We experience higher service latency and reduced functionality when endpoints are down and websites are not loading.”

Failures and service interruptions lasting approx. 8-9 hours. Currently the dYdX exchange is back in operation, but the incident again raises the question of real decentralization.

Decentralized or not?

If a decentralized DeFi protocol relies on the services of a centralized consortium, is it really decentralized?

The team acknowledges that the platform still relies on centralized services and apologizes for the failure.

“Unfortunately there are still some parts of the exchange that rely on centralized services (in this case AWS). We are committed to full decentralization and this remains a top priority as we work on iterating the protocol. “

Some responses indicated that the team is running dYdX on more decentralized cloud services, but not without technical problems and failures.

The AWS Service Status Dashboard is still report several issues with systems in the US EAST-1 region at press time.

The mainstream media did news that the failure also caused problems in Amazon’s own warehouses. A variety of large websites, streaming service providers such as Netflix and Disney +, Alexa, delivery companies and government services were also affected. Coinbase, which provides its own cloud services, and Binance.US have also reportedly gone down.

Statista estimate that AWS controls about a third of the total global market for cloud infrastructure services. This incident shows that relying too heavily on a centralized service provider is not a good idea.

DYDX bounces off immediately

The exchange’s native token dYdX fell slightly to $ 8.8 during the shutdown, but rebounded quickly when services resumed.

DYDX. Price chart | Source: Tradingview

At press time, DYDX is trading 2.2% for the day at $ 9.5. However, it has been clouded by broader market declines, which are down 26% over the past week. DYDX is currently down 66.5% from its September 30th all-time high (ATH) of $ 27.86.

Meanwhile, Binance’s BNB has fallen a little more than 1% in the past 24 hours, trading at $ 581.

Source: TradingView

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