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Crypto Exchanges & Services Experience Damage Due to Cloudflare Outage

Tue, 06/21/2022 - 09:32
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Gamza Khanzadaev
CZ explains how Binance dodged problem
Crypto Exchanges & Services Experience Damage Due to Cloudflare Outage
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This morning, FTX, OKX, Bitfinex, Bitmex and Coinbase are reporting that they are having problems accessing sites due to Cloudflare hanging up. Such platforms as Xumm Wallet and Discord were also experiencing troubles. As for now, the fix has been implemented, and the issue has been resolved.

CZ educates his opponents on how to avoid outage problems

While many crypto exchanges and services experienced problems, Binance continued to operate. Some of its services, like CoinMarketCap, of course, were also suspended, but the work of the exchange itself did not stop.

The head of Binance, Changpeng Zhao, when asked what the secret to success is, said that the exchange uses a backup setup for Cloudflare, while many others rely solely on it.

What is interesting is that CZ ironically mentioned the word decentralization in his tweet, alluding to the not quite canonical working style of its fellow competitors in the sector. And indeed the question arises: Can there be real crypto decentralization, when a short-term suspension of one of the web services is enough to shut down half of all crypto companies?

The question remains open, but it seems obvious that in the pursuit of building web3, even short outages of companies maintaining servers or providing cloud services should not interfere with the work of basic services or exchanges. In an ideal web3, there should be no "500 Internal Server Error."

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.