Centralized Cloud Dependency: Binance, KuCoin, and Web3 Services Disrupted by AWS Outage
The exchanges Binance and KuCoin briefly suspended their withdrawal services this morning due to an incident at their cloud service provider, Amazon Web Services (AWS). A localized outage at an AWS data center caused a network interruption that affected several critical services used by the platforms.
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Rabby, DeBank, and Other Affected Services
In addition to centralized exchanges, Web3 applications were also affected by the outage. Crypto wallet Rabby and analytics tool DeBank were rendered unavailable following the AWS dysfunction. These disruptions once again highlight the crypto ecosystem’s dependence on cloud giants, despite the prevailing rhetoric of decentralization.
The Rabby and DeBank teams took to social media to explain the complete unavailability of their services without indicating a timeline for restoration.
AWS: A Structural Fragility for Web3?
Amazon Web Services currently provides the essential building blocks of global digital infrastructure, including computing power, hosting, and data storage. A simple disruption at one of its data centers can trigger a chain reaction, impacting both the crypto sector giants and the decentralized tools that unwittingly rely on it.
Towards Cloud Diversification in the Crypto Sphere?
As these incidents multiply, more and more voices in the community are calling for diversification of providers or the emergence of truly decentralized cloud solutions. Projects like Akash Network or Storj, based on decentralized hosting and storage models, could benefit from this in the long run. However, the AWS episode serves as a reminder that as long as crypto services rely on Web2 giants, their promise of independence will remain fragile.
