AWS Outage Barely Affects Ethereum Network Nodes

AWS Outage Barely Affects Ethereum Network Nodes
Amazon Web Services (AWS) experienced a minor outage on June 13, with no significant impact on Ethereum network nodes despite their heavy reliance on Amazon's hosting services.

During the incident, the cloud service provider experienced a temporary downtime of approximately three hours. At 12:08 pm PDT, AWS initially reported an ongoing investigation into increased error rates and latencies affecting parts of the United States.

Prominent news organizations, including the Associated Press, were affected by the outage and faced difficulties in publishing articles. However, Ethereum advocate Evan Van Ness pointed out that the Ethereum network remained unaffected.

Ethernodes data reveals that 64.5% of the Ethereum network relies on Amazon hosting providers, and only a small fraction may have been impacted due to the localized nature of the outage. Nonetheless, this significant reliance on AWS raises concerns about the network's decentralization. A more widespread disruption would have had a disruptive effect on the Ethereum network.

Van Ness further emphasized that if the outage had occurred in Europe, it might have had a more substantial impact due to the substantial amount of Ether (ETH) staked on Lido. Currently, Lido accounts for approximately 7.1 million ETH or 35% of the total amount staked, and its reliance on cloud-based services could have been problematic in such a scenario:

"In the event of an AWS outage in Europe, I would expect some consequences considering the significant portion of Lido operating in the cloud."

Ethereum has previously faced criticism regarding centralization concerns stemming from its dependence on infrastructure provider Infura, which supplies network nodes to various companies and organizations. Many of these entities, along with the liquid staking platform Lido, heavily rely on AWS for their cloud hosting needs.

Approximately 20 minutes after identifying the issue, AWS attributed the root cause to a service called AWS Lambda, which enables customers to execute code for various applications. The company later reported the resolution of the problem and stated that all AWS services were operating normally as of 3:37 PM PDT, over three hours after the initial outage.

According to hosting platform Kinsta, AWS maintains the leading market share among cloud hosting providers, accounting for 34% of the market

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