The AWS Outage Shows Why Crypto Can't Keep Relying On Centralized Infrastructure

The recent AWS outage on October 20, which impacted major platforms like Coinbase and Robinhood, highlights the vulnerabilities of the crypto industry’s reliance on centralized cloud infrastructure. Amazon's malfunction in its domain name service led to significant connectivity issues, affecting numerous services globally for a span of two hours. Despite Amazon's swift efforts to restore its services, the incident underscores the dangers posed by centralized systems that have single points of failure, a recurring theme with other cloud providers like Google and Microsoft Azure, which have also faced outages. The crypto market, where billions are traded every hour, experiences immense pressure during such downtimes, with traders potentially incurring significant financial losses. Experts argue that the crypto industry must transition to partial decentralized infrastructures to minimize these risks. While centralized clouds provide unmatched scale and performance, the need for resilience in handling customer funds necessitates a shift towards systems that can better withstand technical failures.

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