Crypto’s main value proposition is that base networks are supposed to be online, all the time. Out of this ultra-high reliability, DeFi platforms, whether lending or decentralized exchanges, can function at any time of the day, all without censoring transactions, another big plus.

True, Bitcoin, Ethereum, and mainnets powering some of the next 100X cryptos are reliable. Ethereum, Litecoin, Monero, and most legacy chains whose nodes and miners are decentralized have never “stopped” since launching.

However, something happened last month. When AWS failed, Uniswap, MetaMask, and other top DeFi protocols also ceased connecting to the mainnet and offering services to thousands, if not millions, of users.

(source – X)

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The AWS Blackout in October

The AWS blackout revealed that, despite discussions of decentralization, most DeFi protocols and wallet providers still run the majority of their nodes on centralized cloud service providers. A big chunk, as it is now clear, depends on AWS, Google, and Alibaba platforms to power operations. It is a decision that introduces weaknesses to crypto.

Amazon engineers identified the outage as a “DNS race condition” in their automated DNS management system. Simply put, two processes in their DynamoDB, a database service, competed to write the duplicate DNS entry simultaneously, resulting in an “empty” record, which was the source of all their problems.

By the time the problem was fixed, Coinbase, Robinhood, MetaMask, and Infura had all reported issues.

On Infura, which powers most Ethereum RPC traffic, endpoint disruptions ultimately impacted most Ethereum layer-2s, including Base and Optimism.

Specifically, on Uniswap, trading froze as users couldn’t connect or execute swaps.

On Aave, a decentralized money market, borrowing and lending stalled while oracle updates were delayed, risking undercollateralized positions.

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Consensys Is Fixing This DeFi Problem via EigenCloud

Aware of the risks, Consensys, which runs Infura, a blockchain infrastructure provider, is taking action by providing easy-to-use RPC endpoints.

Yesterday, Consensys launched a decentralized infrastructure network (DIN) as an actively validated service (AVS) on EigenCloud, a restaking protocol on Ethereum.

The DIN by Consensys will operate as an RPC marketplace, where malicious agents will be penalized.

On EigenCloud, users can stake ETH or liquid-staked versions like stETH to secure the Ethereum mainnet, then “restake” it to also back other services like DIN.

The DIN is open-source, and node operators can join as providers, competing on performance and earning a share of traffic fees and restaking rewards.

Effectively, with DIN, Consensys is decentralizing Infura and competitors, including QuickNode and Alchemy, which also depend on AWS, might lose market share should this EigenCloud-powered RPC marketplace find traction.

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Consensys Decentralizing DeFi via DIN on EigenCloud

  • AWS outage in October 
  • Infura temporarily stalled, impacting top DeFi protocols and Ethereum layer-2s 
  • Consensys is deploying DIN on EigenCloud 
  • Is the era of 100% uptime for DeFi protocols on?  

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Dalmas Ngetich
Dalmas Ngetich
Crypto Journalist

Dalmas is an experienced journalist with over a decade in crypto, technology, and blockchain. His work and that of his partners have been featured in top news outlets, including Forbes, investing.com, and Entrepreneur, among others. He is passionate about crypto... Read More

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