Experts say that the outage that collides with Amazon’s cloud computing platform, which affects major cryptocurrency exchanges, is a “textbook example” of the shortcomings of centralized systems.
On April 15th, major Crypto exchanges, Binance, Kucoin and others suffered temporary network disruptions, forcing the platform to temporarily suspend user withdrawals.
The move follows the downturn that hit Amazon Web Services, Amazon’s cloud computing provider, which prepares the majority of its global market for services such as storage and computing power. Companies rely on AWS data centers to run their websites and applications.
If there is an outage, the impact can be large. And Crypto felt part of this as global exchanges moved to temporarily suspend critical services. The AWS confusion is why cryptography requires a distributed system that includes a distributed cloud infrastructure powered by artificial intelligence.
“AWS outages today are examples of a textbook of single failure risk associated with centralized cloud infrastructure. This reminds us why demand is growing due to a more distributed and resilient model.”
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Li argues that decentralized cloud computing platforms still face significant challenges, including network tuning, latency and scalability. However, by taking advantage of blockchain, it reduces the risk of “single point of failure.”
“Decentralized cloud computing offers a compelling alternative by delivering data and processing across the network and effectively reducing the risk of complete disruption in services,” he said. “While centralized cloud infrastructures may maintain their importance, the importance of distributed computing is becoming more and more apparent.”
Binance resumed user withdrawals within 10 minutes shortly after the network was disabled. However, as the exchange pointed out, customers still faced the challenge of doing business.
The issue also affects crypto wallets and chain-on-chain analytics tools, and experts responding to events say Crypto and Web3 will be better.
This is the opinion that Aleph Cloud CEO Jonathan Schemoul shares in a statement sent to Crypto.news. Aleph Cloud is a distributed cloud infrastructure provider that provides virtual machines, web hosting, and other backend services.
Schemoul said:
“What we are witnessing here is further evidence that many Crypto and Web3 companies do not act in the true interest of their users. They promote decentralization and privacy, but continue to rely on large technologies despite higher costs and a single point of failure.”
Experts have long argued that centralized cloud services such as Amazon Web Services, Microsoft Azure, and Google Cloud are key providers. However, large costs and other restrictions often provide barriers to keeping crypto startups in innovation limbo.
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