AWS failure exposes crypto’s centralized weak point
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When Amazon Web Services (AWS) faltered this morning, much of the internet went dark, and crypto was no exception. Several major blockchains and trading platforms, including Coinbase, Robinhood, and some Ethereum layer-2 networks, reported disruptions after AWS suffered an operational failure linked to its DynamoDB database service. According to Amazon’s status page, the issue began in the US-EAST-1 region and caused cascading slowdowns across 58 services globally. The firm explained: “Based on our investigation, the issue appears to be related to DNS resolution of the DynamoDB API endpoint in US-EAST-1. We are working on multiple parallel paths to accelerate recovery. This issue also affects other AWS Services in the US-EAST-1 Region. Global services or features that rely on US-EAST-1 endpoints such as IAM updates and DynamoDB Global tables may also be experiencing issues.” As a result, Down Detector logged outages across more than 50 platforms, from airlines and streaming sites to social apps like Snapchat and Signal. Notably, this latest incident was Amazon’s second major outage this year, following one in April. Centralized cloud, decentralized consequences AWS underpins a vast share of the world’s internet infrastructure, providing cloud storage and computing power to hundreds of companies that rely on its uptime. In crypto, that dependency is proving hard to ignore. Coinbase confirmed that the outage temporarily limited user access but said its systems are now recovering. Robinhood reported a similar restoration of service. Meanwhile, Base, Coinbase’s Ethereum layer-2 network, posted that the AWS outage impacted its infrastructure and reduced its capacity. Notably, blockchain infrastructure providers were also not spared from the outage. Consensys-backed Infura, the backend service that connects crypto wallets like MetaMask to blockchains, said the disruption affected its users’ connection to Polygon, Optimism, Arbitrum, Linea, Base, and Scroll. How AWS Outage Impacted Infura (Source: Infura) Why does AWS…
