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A defective software update from cybersecurity firm CrowdStrike has triggered widespread disruptions across multiple industries worldwide.
What's the scoop?
- The new update caused thousands of Windows-based IT systems to crash, displaying the “blue screen of death” (BSOD) and rendering systems unable to reboot. Mac and Linux systems were unaffected.
- The outage has grounded flights, delayed trains, disrupted banks, affected healthcare services, and beyond. More than 2,000 flights were canceled and more than 5,000 delayed in the U.S. alone.
- Even the London Stock Exchange reported technical issues in the wake of the update, as CrowdStrike’s stock price has dropped over 11% on the day.
- CrowdStrike CEO George Kurtz confirmed that the issue was due to a bad update and not a cyberattack. A fix has been deployed, but the restoration of services will take time.
Bankless take:
If nothing else, this episode underscores the fragility of our highly interconnected digital economy. The global reliance on a few key technology providers can lead to systemic risks, as seen with the widespread impact of a single flawed update from CrowdStrike.
The massive infrastructure outages occurring globally right now are a stark example of why
— Jameson Lopp (@lopp) July 19, 2024Bitcoin node software does not automatically update.
Auto-updates introduce systemic risk.
As industries increasingly digitize, it’s crucial to have robust contingency plans and decentralized systems to mitigate such disruptions. The outage also highlights the importance of rigorous testing before rolling out updates, especially in critical infrastructure sectors.
