{"id":1422,"date":"2021-12-14T15:51:31","date_gmt":"2021-12-14T20:51:31","guid":{"rendered":"https:\/\/www.hodlin.com\/blog\/?p=1422"},"modified":"2023-01-28T22:39:20","modified_gmt":"2023-01-29T03:39:20","slug":"dydx-disrupted-by-amazon-web-service-aws","status":"publish","type":"post","link":"https:\/\/www.hodlin.com\/blog\/dydx-disrupted-by-amazon-web-service-aws","title":{"rendered":"Amazon Web Service (AWS) Technical Hitch Saw the $978 Million Layer-2 DeFi Cog, DyDx Disrupted"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-medium\"><img decoding=\"async\" width=\"780\" height=\"439\" src=\"https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/12\/dydx-disrupted-by-aws-780x439.jpg\" alt=\"Dydx Disrupted By Aws\" class=\"wp-image-1423\" title=\"\" srcset=\"https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/12\/dydx-disrupted-by-aws-780x439.jpg 780w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/12\/dydx-disrupted-by-aws-1200x675.jpg 1200w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/12\/dydx-disrupted-by-aws-768x432.jpg 768w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/12\/dydx-disrupted-by-aws-1536x864.jpg 1536w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/12\/dydx-disrupted-by-aws-2048x1152.jpg 2048w\" sizes=\"(max-width: 780px) 100vw, 780px\" \/><figcaption class=\"wp-element-caption\">DyDx Disrupted By Amazon Web Service (AWS)<\/figcaption><\/figure>\n\n\n\n<p>Decentralized operations are supposed to be just that, decentralized. Unfortunately, in the real world, perfection is hard. Even though crypto fans wish their precious digital assets to dominate, putting gatekeepers out of business, it is still sad that the core of some crypto validators and ramps depends on centralized third parties.<\/p>\n\n\n\n<p>Many Proof-of-Stake network validators run from Amazon Web Services (AWS) and similar providers. In 2018, Bitcoin Cash miners were heavily criticized for relying on Alibaba servers during the depressing bear market.<\/p>\n\n\n\n<p>The lights are now cast on Coinbase, Binance U.S., and especially, the decentralized derivatives supporting exchange, <a href=\"https:\/\/www.hodlin.com\/coins\/dydx\" data-type=\"URL\" data-id=\"https:\/\/www.hodlin.com\/coins\/dydx\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">DyDx<\/a>. On December 7, the DEX&#8217;s operations were temporarily disrupted after AWS experienced technical hitches, affecting supply chains and many other operations over-relying on the provider.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Due to a major AWS outage, dYdX exchange is currently down. We are experiencing greater latency across services and impaired functionality with endpoints not working and the website not loading. <br><br>For the most up to date status updates, subscribe to: <a href=\"https:\/\/t.co\/EvjpZdRyby\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">https:\/\/t.co\/EvjpZdRyby<\/a><\/p>&mdash; dYdX (@dYdX) <a href=\"https:\/\/twitter.com\/dYdX\/status\/1468293558360805381?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">December 7, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>As things stand, AWS commands the lion&#8217;s share, controlling roughly 33 percent of the cloud infrastructure market, according to Synergy Research Group.<\/p>\n\n\n\n<p>With this, AWS is the largest cloud infrastructure service provider, quite literally anchoring essential operations requiring them to be online at all times. In the case of DyDX, a decentralized derivatives trading platform, there were concerning issues on latency and page loading.<\/p>\n\n\n\n<p>It raised eyebrows considering its role in the <a href=\"https:\/\/www.hodlin.com\/blog\/what-is-defi-decentralized-finance\" data-type=\"post\" data-id=\"733\">DeFi<\/a> space. Currently, the decentralized exchange on Ethereum has a <a href=\"https:\/\/l2beat.com\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">TVL of over $978 million<\/a>. It is second after Arbitrum\u2014a general-purpose layer-2 scaling option with a TVL of more than $2.2 billion.<\/p>\n\n\n\n<p>In a tweet, DyDx acknowledged the inconveniencing disruption, saying some sections of its operations still relied on centralized cloud service infrastructure.<\/p>\n\n\n\n<p>However, to assuage fears of future disruption, the exchange <a href=\"https:\/\/twitter.com\/dydxprotocol\/status\/1468408322315464706\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">said<\/a> they were committing to fully decentralizing.<\/p>\n\n\n\n<p><q>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. This remains one of our top priorities as we continue to iterate on the protocol. We apologize for this outage.<\/q><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Decentralized operations are supposed to be just that, decentralized. Unfortunately, in the real world, perfection is hard. Even though crypto fans wish their precious digital assets to dominate, putting gatekeepers out of business, it is still sad that the core of some crypto validators and ramps depends on centralized third&#8230; <a class=\"more-link\" href=\"https:\/\/www.hodlin.com\/blog\/dydx-disrupted-by-amazon-web-service-aws\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":1423,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[150,149],"class_list":["post-1422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-amazon-web-service-aws","tag-dydx"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/posts\/1422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/comments?post=1422"}],"version-history":[{"count":2,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/posts\/1422\/revisions"}],"predecessor-version":[{"id":1574,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/posts\/1422\/revisions\/1574"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/media\/1423"}],"wp:attachment":[{"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/media?parent=1422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/categories?post=1422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/tags?post=1422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}