Windows users around the globe woke up on Friday morning to “blue screens of death” (BSOD) thanks to a faulty software update from CrowdStrike. The bug caused outages around the world, bringing airlines, boats, hospitals, and banks to a grinding halt. But some see opportunity in the rubble.
The blockchain space offers nearly limitless possibilities, particularly in enhancing efficiency and security. Roundtable anchor, Rob Nelson, and Simon Baksys, VP of Business Development at LayerZero Labs, delve into the potential of blockchain to prevent disruptions like those caused by the recent CrowdStrike incident.
Nelson opened the discussion by highlighting the incredible potential within the blockchain space. He wonders if blockchain could prevent incidents similar to the recent grounding of flights due to a software update issue.
Baksys explains that while there are parallels, the CrowdStrike incident isn’t directly comparable. He emphasizes the importance of decentralization, stating that it reduces the risk of a single point of failure, which was evident in the CrowdStrike case. Decentralization could potentially offer more resilience against such disruptions.
Rob agrees, pointing out that the problem lies in centralized control. He admires how bitcoin miners can quickly adjust their power usage to support the grid, illustrating the benefits of a decentralized system. This adaptability and efficiency, he notes, are essential for a more resilient infrastructure.
Simon acknowledges this, adding that while decentralization involves more decision-makers and might slow down some processes, it ultimately aims to create a more robust and efficient system. He admits that the blockchain space still faces challenges in achieving this ideal balance between decentralization and efficiency.
Rob expresses his curiosity about managing consensus in decentralized operations, acknowledging the potential for longer decision-making times. However, he remains optimistic about the future, believing in the potential for blockchain to improve overall efficiency and offer more control at the user level.
Simon agrees, conceding that while the blockchain world isn’t perfect, its benefits are worth pursuing. He is confident that ongoing efforts will address existing flaws, paving the way for a more decentralized and resilient future.
These startups are trying to prevent another CrowdStrike-like outage, according to VCs
The global outage is a perfect reminder how much of the world relies on technological infrastructure. In the midst of disaster, some venture capitalists see a chance for new technologies to prevent this from ever happening again.
In 2024, one buggy software update should probably not be allowed to take down so many of the globe’s most important computer systems. Some would say this is exactly why startups, and venture capital, exist: to innovate in the face of a widespread issue.
The CrowdStrike outage is drawing attention to cybersecurity companies, but CRV general partner Reid Christian says this wasn’t a cybersecurity event; the real problem is that a massive vendor deployed software that wasn’t properly tested, debugged or deployed in a staged rollout. CRV is investing in a cybersecurity and IT management startup called Fleet that monitors vendor instances on your endpoint.
It’s not clear how well additional mobile device management-type software, like Fleet, would have worked with this particular CrowdStrike issue. The problem appeared to be caused by a faulty Windows kernel-level driver, which is software installed at the deepest levels of a computer. (Companies that had MDM software in addition to CloudStrike still experienced the BSOD.) But Christian points out that when granting that level of access and trust to a software vendor, more protections are necessary.
“We need to have people watching the watchers in the cyber world,” Christian said. “You can have your main vendors, but you must have ancillary vendors as well, people who are sitting alongside and are there to support.”
Though this wasn’t a cybersecurity incident caused by a malicious hacker, Friday’s outage may have been so severe due to CrowdStrike’s unique access to kernels, the core of the operating system. Lightspeed Venture Partners’ Guru Chahal suspects cybersecurity applications, such as Wiz, that sit outside the kernel may become more popular after this disaster.
