An AWS outage sent shockwaves around the crypto industry, Delong left
his role as Sushi CTO, and Coinbase opened a cryptography library — all
coming to you in this week’s Finance Redefined.
Although the markets may be down and technical indicators built upon
AWS malfunctioning, fear not young degens, fundamental news and the
spirit of Wagmi is abundant as ever. So, read on and discover all you
need to know about the most important events of this week.
AWS outage highlights the need for truly decentralized exchanges.
An
Amazon Web Service outage this week produced significant cascading
effects on the global supply chain and delivery industry, as well as hours-long operational disruptions to decentralized exchange dYdX and leading centralized exchanges Binance.US and Coinbase.
AWS
is the world’s largest cloud service infrastructure, which provides an
array of services, including network servers, storage capacities, remote
computing and mobile development, to name a few.
According to data
published this year by Synergy Research Group, the tech titan holds a
33% share of the cloud infrastructure market, followed by Microsoft and
Google with 20% and 10%, respectively.
Details on the incident
were largely undisclosed; however, it was stated on the company’s
service health page that “multiple AWS APIs in the US-EAST-1 Region,”
located in Northern Virginia, were experiencing connectivity issues.
In
a Twitter statement shared on Dec. 7, and into the early hours of Dec.
8, dYdX spoke about enhanced latency across the network, as well as
website loading failures, before disclosing its overreliance on the
centralized servers, one of which is AWS.
Unfortunately,
— dYdX (@dydxprotocol) December 8, 2021
there are still some parts of the exchange that rely on centralized
services (AWS in this case). We are deeply committed to fully
decentralizing and this remains one of our top priorities as we continue
to iterate on the protocol. We apologize for this outage.
Analytical data from DappRadar reveals that dYdX is the 13th largest
decentralized finance application built on the Ethereum Network,
registering approximately $1.5 billion in daily trading volume. In
September this year, dYdX achieved a historic transactional milestone in surpassing the volume of Coinbase over the course of a single day, with $4.3 billion in comparison to $3.7 billion.
Decentralization
is understood by many early crypto adopters to be a core component of
the industry’s architecture. Alongside security and scalability, the
former makes up the so-called blockchain trilemma, a concept coined by
Ethereum co-founder Vitalik Buterin, to denote the necessity to
sacrifice one side of the triad to experience the benefits of the other
two.
In the world of crypto exchanges, many opt to prioritize
security and scalability in pursuit of mass adoption but, therefore,
operate with largely centralized, Web 2.0-like structures.
Related: Decentralization vs. centralization: Where does the future lie? Experts answer
Joseph Delong wraps up time as SushiSwap CTO
SushiSwap chief technology officer Joseph Delong, announced his immediate departure from the decentralized exchange
this week, pledging to honorably pass the proverbial batten onto the
next leader, alongside necessary accounting and information data.
Delong explained the reasoning behind his decision in a candid Twitter thread, citing internal conflicts and a lack of unified vision for the project, stating:
“I
wish Sushi the best and am saddened that Sushi is so imperiled within
and without. The chaos that is occurring now is unlikely to result in a
resolution that will leave the DAO as much more of a shadow than it once
was without a radical structural transformation.”
Delong
has experience working in the Web 3.0 space as a blockchain engineer
and developer. Formerly employed as a senior software engineer at
ConsenSys, Delong took up the position of CTO at SushiSwap at the
beginning of 2021 following Chef Nomi’s infamous exodus in the months prior.
Over
the past year, Delong has guided SushiSwap to the 12th ranked position
in nominal total value locked value (TVL) with $2.85 billion but also
suffered obstacles with stringent whitelisting acceptance on layer-two protocol Optimism, as well as a $3-million supply chain exploit on launchpad MISO and, more recently, rumoured vulnerability in its smart contracts to the value of $1 billion.
Related: SushiSwap denies reports of billion-dollar bug
Coinbase opens cryptography library to promote innovation
One of the leading cryptocurrency exchanges, Coinbase, this week announced the launch of an open-source library-themed platform, titled Kryptology, designed to provide developers with a suite of “secure, audited, and easy-to-use application programme interfaces (APIs).”
In
an official blog post, Coinbase outlined its intentions for the library
in fostering the continued development of this long-standing
technology:
“While enabling further innovation is our
primary goal, we also aim for Kryptology to elevate the standard for
what is considered to be a robust, usable cryptographic library.”
Related: Coinbase announces support for hardware wallets, starting with Ledger
Token performances
Analytical data reveals that DeFi’s total value locked has decreased 11.3% across the week to a figure of $143.95 billion.
Data from Cointelegraph Markets Pro and TradingView reveals DeFi’s top 100 tokens by market capitalization exceeding bearish across the last seven days.
Terra (LUNA) was the sole gainer of the top 100 this week with a mere 1.81%. Not
the most memorable technical week for DeFi, let’s put it that way, but
unsurprising considering the wider context of the crypto-wide market
pullback.
Interviews, features and other cool stuff
- Without staking, institutional crypto investors cannot escape inflation
- Gold, Bitcoin or DeFi: How can investors hedge against inflation?
- Bitcoin continues consolidation: Are we still in a bull market?
Thanks
for reading our summary of this week’s most impactful DeFi
developments. Join us again next Friday for more stories, insights and
education in this dynamically advancing space.
source link : https://cointelegraph.com/news/finance-redefined-aws-turns-crypto-exchanges-offline-and-sushi-cto-resigns-dec-3-10
