An Amazon Web Services (AWS) network failure has caused outages across South Korea which have taken down cryptocurrency trading services in the country.
Popular South Korean exchange giant Upbit, which stopped trading for about an hour, announced the problems in the following statement on its website:
“Due to the current server failure (Amazon internal DNS issue), you can not temporarily use up-bit service.”
The announcement went into further detail regarding the cancellations of outstanding orders if price fluctuations occur.
“Cancellation of orders: Purchase order with a price higher than the last closing price based on the last closing time. Sales order lower than the last closing price based on the last closing date.”
The outage reveals the much-maligned centralized nature of an industry which sells itself on decentralization. Despite blockchain providing a technology that should facilitate a decentralized means of currency exchange, the reality is that today’s world still relies heavily on centralized cloud services like AWS. However, developments are being made, most notably by Stellar Labs’ recently launched StellarX decentralized exchange (DEX).
The network outage in South Korea also affected fellow crypto exchange Coinone, as well as companies in several other industries including hotel booking service Yanolja, food delivery platform Market Kurly and e-commerce firm Coupang. The issue has since been resolved, and network services have returned to normal.