Amazon Web Services is one of the most famous cloud computing services worldwide.
Recently, the service suffered a period of downtime, causing problems with numerous websites. Some of the sites it affected include two major cryptocurrency exchanges in South Korea.
The two exchanges, Coinone and Upbit, went offline after the server malfunction that brought down AWS. The failure also led to the inaccessibility of other ecommerce sites.
AWS reported that from 3:19 p.m. to 4:43 p.m. on November 22, the service had an extremely high rate of error which affected the Asian-Pacific region. The server crash affected networks in Seoul the most.
AWS managed to deal with the issue, and the service has resumed working as usual.
The Server Failure
After the server failure, the two crypto exchanges issued statements. Upbit reported that there was a domain name server malfunction with AWS that affected the exchange’s operation.
However, the crypto exchange apologized to its users for failing to warn them of the downtime.
Coinone, on the other hand, issued a notice stating it was switching to maintenance status.
Admins attempted to prevent the users at the time of the failure from getting stuck. However, the crash eventually overpowered Upbit and Coinone.
Upbit announced that the exchange would have to halt transactions under special circumstances.
Although AWS is now running as before, the situation has not been the same for Coinone. Reports following the incident show that the exchange wasn’t able to support deposits, withdrawals as well as trade. Upbit, on the other hand, is back up and running.
Upbit, nonetheless, had a reduction in its trade volume on the day of the crash. Its 24-hour trade volume dropped to $135 million from the $186 million it had traded the previous day.
The Crypto Exchanges
Upbit is among the top crypto exchanges in the world. It recently had the 21st highest 24-hour trade volume among crypto exchanges worldwide. Therefore, the AWS server glitch had an impact on many cryptocurrency traders using this exchange.
Upbit has had more than one challenge this year. In May, the exchange was under investigation following reports that it was bankrupt.
The crypto exchange was facing allegations that it did not have enough money in its accounts to fully cover its investors’ deposits.
Therefore, inspectors confiscated Upbit’s hardware. However, the investigation ultimately proved that the exchange was free of legal issues.
Coinone has also gained popularity since 2014, although it has been operating locally. It is the third largest crypto exchange in Korea. This year, Coinone introduced its first overseas exchange in Indonesia.
Like Upbit, Coinone has also had its share of trouble with the law. In June, an ongoing investigation against the exchange since 2014 came to an end.
South Korean authorities reported that Coinone was allegedly providing gambling services. Gambling is a criminal offense according to South Korean law.
The police indicated that three of Coinone’s executives, including the CEO, were responsible for this crime. However, Coinone maintains that the allegations are untrue.
The two crypto exchanges have managed to get back up on their feet despite the turmoil they have undergone. However, both the legal and technical issues have been detrimental to their revenue.
The Use of Cloud Computing Services
The use of cloud computing services has spread not only to crypto exchanges but to public blockchains as well. Their functioning thus impacts the effectiveness of cryptocurrency exchanges and transactions.
So far, several blockchains are relying on cloud computing services. Investigators have revealed that about 50 percent of the nodes that run Bitcoin Cash depend on Alibaba, which is one of AWS’s competitors.
AWS also hosts some blockchains. Amazon recently introduced its blockchain-as-a-service offering. However, the incident only affected crypto exchanges.
Many South Korean companies use AWS as it provides services at convenient prices. Hyundai and Samsung, which are among the largest companies in the country, rely on AWS for their foreign operations.