Cloudflare, a major company responsible for running a variety of functions for websites on the Internet, experienced downtime on July 17, which greatly affected the functionality of the websites. The downtime eventually caused a drop in Bitcoin (BTC) transactions.
„The disruption to Cloudflare’s DNS (Domain Name System) can be reflected in Bitcoin’s transaction transmission rate, presumably because the most popular web wallets became inaccessible,“ Bitcoin engineer and expert Jameson Lopp said in a July 17 tweet. Lopp’s tweet included a graph showing a significant drop in Bitcoin transactions per second.
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The fall of Cloudflare
Cloudflare posted a note on its website at 9:46 p.m. UTC on July 17, detailing the presence of a problem as well as the entity’s investigation into the incident.
„This afternoon we saw a disruption in some parts of our network,“ Cloudflare said in a 10:09 p.m. update. UTC. „It was not the result of an attack.“
The update further explains:
„It appears that a router on our global backbone announced faulty routes and caused some parts of the network to be unavailable. We believe we have addressed the root cause and are now monitoring the systems for stability.
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At 10:57 p.m. UTC, a final update on the situation showed the resolution of the problem.
The event raises a question about decentralization
The Bitcoin Blockchain itself was not interrupted during this event. However, the event may have blocked the Bitcoin Lifestyle access gate for many people, according to Lopp’s tweet. The disruption affected many websites, including crypto-currency services, which means that users would probably not be able to access their funds held on those services during this disruption.
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The Cloudflare problem, and the subsequent drop in transactions observed by Lopp, may indicate that a considerable number of crypto users are using largely centralized storage and exchange options, making space less decentralized than the ideals and technology on which the industry was built. In addition, despite the fact that crypto users use different services, the disruption eliminated many of those services with a single point of failure: Cloudflare.