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security-post-mortems-hacks-and-exploits
Blog

Why Your RPC Endpoint Is Your Single Point of Failure

Your dApp's security is only as strong as its weakest link. This analysis exposes the systemic risk of centralized RPC providers, detailing past exploits and the urgent need for decentralized alternatives like Chainscore, Pocket Network, and BlastAPI.

introduction
THE RPC FAILURE

The Silent Kill Switch in Your Stack

Your application's public RPC endpoint is a single point of failure that silently degrades user experience and compromises decentralization.

Public RPCs centralize risk. Services like Infura and Alchemy process the majority of Ethereum traffic, creating systemic fragility. Your dApp's uptime is now tied to their infrastructure, not the underlying blockchain.

Latency is a silent killer. A slow RPC endpoint causes failed transactions and front-running. Users blame your protocol, not the hidden bottleneck in the data pipeline from your provider.

Provider censorship is real. RPC providers can and do filter transactions based on OFAC compliance. This violates the core promise of permissionless access, making your app an extension of their policy.

Evidence: The 2022 Infura outage took down MetaMask, Uniswap, and Compound. The network was fine, but user access was severed. Your app is only as resilient as its weakest dependency.

key-insights
SINGLE POINT OF FAILURE

Executive Summary: The RPC Risk Triad

Your RPC endpoint is not a commodity; it's a critical, centralized risk vector that can silently degrade performance, censor users, and leak data.

01

The Problem: The Centralized Chokepoint

Relying on a single provider like Infura or Alchemy creates a systemic risk. Their outages have historically taken down major dApps and wallets, locking $10B+ TVL.\n- Censorship Risk: A single operator can block transactions.\n- Data Leakage: Your user's wallet activity is exposed.\n- Performance Bottleneck: Global traffic funnels through a few servers.

1
Provider
100%
Risk
02

The Solution: Decentralized RPC Networks

Networks like Pocket Network and Ankr distribute requests across thousands of independent node runners. This eliminates single points of failure and aligns incentives.\n- Censorship Resistance: No single entity controls the gateway.\n- Data Privacy: User queries are anonymized across the network.\n- Uptime Guarantees: Redundancy ensures >99.9% SLA.

30k+
Nodes
>99.9%
Uptime
03

The Reality: Performance & Cost Trade-offs

Decentralization introduces latency and cost complexity. A naive implementation can increase latency by ~500ms and costs by 10x. The key is intelligent routing.\n- Latency Optimization: Geo-routing and node scoring (e.g., Chainscore).\n- Cost Management: Pay-per-request vs. staking models.\n- Reliability: Must match centralized <1s response times.

~500ms
Latency Add
10x
Cost Variable
04

The Architecture: Fallback & Load Balancing

A robust strategy uses a primary decentralized network with centralized providers as fallback. Tools like Chainstack's Gateway or custom middleware manage this.\n- Smart Failover: Automatic switch on high latency or errors.\n- Load Distribution: Route non-critical reads, send writes to fastest node.\n- Health Checks: Continuous monitoring of endpoint performance.

<100ms
Failover Time
2+
Providers
05

The Data Risk: MEV & Privacy Leakage

RPC providers see everything. Transparent mempools and transaction ordering expose users to front-running and data harvesting. This is a direct revenue stream for providers.\n- MEV Extraction: Your user's swap can be sandwiched.\n- Behavioral Profiling: Wallet activity is a valuable dataset.\n- Solution: Use private RPCs or services like Flashbots Protect.

$1B+
MEV Extracted
100%
Tx Visible
06

The Bottom Line: RPC as Critical Infrastructure

Treat your RPC layer with the same rigor as your smart contracts. Your choice directly impacts security, UX, and compliance. The future is multi-provider, intelligently routed, and privacy-preserving.\n- Audit Your Stack: Map your dependencies.\n- Demand SLAs: Hold providers accountable.\n- Plan for Failure: Have a documented incident response.

0
Downtime Tolerated
Tier-1
Priority
thesis-statement
THE SINGLE POINT OF FAILURE

Centralized RPC is a Protocol-Level Vulnerability

Your application's reliance on a centralized RPC endpoint creates a systemic risk that undermines the decentralization of the entire protocol.

RPC centralization breaks decentralization. Your dApp's frontend is a thin client; all logic and state queries route through your chosen RPC provider. This creates a single point of failure for censorship, data manipulation, and downtime that your users cannot bypass.

Infrastructure risk is execution risk. A degraded or malicious RPC can front-run, censor, or return stale data, directly impacting transaction success and user funds. This risk is identical to the MEV and reliability issues protocols like Flashbots and EigenLayer aim to solve at the consensus layer.

Provider dependency creates systemic fragility. Outages at major providers like Alchemy or Infura have historically taken down large segments of DeFi. Your protocol's uptime becomes a function of your vendor's SLO, not the underlying blockchain's.

Evidence: The September 2022 Infura outage during the Ethereum Merge rendered MetaMask and major dApps unusable, demonstrating that centralized RPC infrastructure negates blockchain liveness guarantees for end-users.

case-study
THE INFRASTRUCTURE FRONTLINE

Post-Mortems: When RPCs Failed

RPC endpoints are the silent, single points of failure that have broken major protocols and drained wallets. Here's what went wrong and how to architect around it.

01

The Solana 17-Hour Outage

In April 2023, a bug in Solana's RPC software caused a 17-hour network stall. Validators couldn't produce blocks because their RPC nodes failed to sync, cascading into a total halt.\n- Root Cause: Non-deterministic RPC behavior crippled consensus.\n- Lesson: Your chain's liveness depends on RPC reliability, not just validator honesty.

17h
Network Halt
$100M+
TVL Frozen
02

The Infura Polygon Blackout

When Infura's managed RPC service for Polygon had an API outage in 2022, thousands of dApps went dark. MetaMask wallets couldn't connect, and DeFi protocols like Aave and Uniswap became inaccessible on the chain.\n- Root Cause: Centralized dependency on a single provider's infrastructure.\n- Lesson: A monolithic RPC provider creates systemic risk across the entire ecosystem.

99%
dApp Downtime
1 Provider
Single Point
03

MEV Sandwich Attacks via Public RPCs

Using default public RPC endpoints exposes user transactions to frontrunning bots. These bots monitor the public mempool, identifying profitable swaps to sandwich, costing users ~5-20% in slippage per trade.\n- Root Cause: Transparent transaction propagation on public nodes.\n- Solution: Private RPCs with direct validator connections or services like Flashbots Protect to bypass public mempools.

20%
Max Slippage
~500ms
Attack Window
04

Arbitrum Sequencer Failure

In 2023, Arbitrum's sequencer—a specialized RPC—failed, halting all L2 transactions for 2+ hours. While the L1 was safe, the bridge was functionally broken, freezing $2B+ in assets.\n- Root Cause: Centralized sequencer design without failover.\n- Architectural Fix: Decentralized sequencer sets or permissionless sequencing, as explored by Espresso Systems and Astria.

2h+
L2 Frozen
$2B+
TVL Impact
05

The Alchemy Ethereum Fork Catastrophe

In 2021, a bug in Alchemy's Geth client caused nodes to fork off from the canonical Ethereum chain. DApps relying solely on Alchemy served incorrect chain data, leading to erroneous balances and failed transactions.\n- Root Cause: Lack of client diversity and provider redundancy.\n- Mandate: Use multiple RPC providers and multiple execution clients (e.g., Geth, Nethermind, Erigon).

Multi-Hour
Data Corruption
1 Client
No Diversity
06

Solution: Multi-Provider Fallback & Monitoring

The fix is architectural redundancy. Implement automated RPC failover across geographically distributed providers (e.g., Alchemy, QuickNode, Chainstack, private nodes).\n- Tooling: Use services like Pocket Network or Chainscore for decentralized routing and performance analytics.\n- Metric: Monitor latency, error rates, and chain tip lag to preemptively switch nodes.

99.99%
Target Uptime
<100ms
Failover Time
RPC ENDPOINT ARCHITECTURE

The Centralization Tax: Risk vs. Cost Analysis

Comparing the failure modes, costs, and operational risks of centralized vs. decentralized RPC providers.

Critical Risk FactorSingle Cloud Provider (e.g., Infura, Alchemy)Multi-Cloud Load BalancerDecentralized Network (e.g., Chainscore, Pocket)

Single Point of Failure

Provider Downtime SLA

99.95% (4.38h/year)

99.99% (0.87h/year)

99.999% (5.26min/year)*

Regional Outage Impact

Complete Service Loss

Partial Degradation

No Impact

Censorship Resistance

Max Concurrent Requests

~50,000 / sec

~150,000 / sec

Theoretically Unlimited

Latency P99 (Global)

150-300ms

100-200ms

< 100ms

Cost per 1M Requests

$100 - $250

$150 - $400

$50 - $150

Data Sovereignty Risk

deep-dive
THE VULNERABILITY MATRIX

Attack Vectors Beyond Downtime

RPC downtime is the least sophisticated threat; censorship, data manipulation, and frontrunning are the systemic risks that drain value.

Censorship is a silent kill. A malicious or compromised RPC provider selectively drops transactions, blocking users from critical actions like liquidations on Aave or governance votes. This creates a shadow fork where state diverges for targeted users, a more insidious failure than total downtime.

Data manipulation enables theft. An RPC can return spoofed blockchain data, tricking wallets into signing malicious transactions. This man-in-the-middle attack bypasses smart contract audits, as the exploit occurs at the infrastructure layer before a transaction is even constructed.

MEV extraction is institutionalized. RPC providers with privileged access to the transaction queue can frontrun user trades, a practice formalized by services like Flashbots. This creates a tax on every swap executed through vulnerable endpoints, directly siphoning value from end-users.

Evidence: The 2022 Ankr RPC exploit demonstrated data manipulation, where hijacked endpoints returned fraudulent allowance data, leading to a $5M theft. This proves the attack vector is not theoretical.

risk-analysis
RPC INFRASTRUCTURE FRAGILITY

The Bear Case: What Could Go Wrong Next?

Your RPC endpoint is the silent, centralized chokepoint that can cripple your entire dApp stack.

01

The Black Swan Outage

A major provider like Infura or Alchemy goes down, taking $10B+ in DeFi TVL and millions of wallets offline. Your dApp's uptime is now a function of another company's SLO.

  • Cascading Failure: Smart contracts remain live, but user interaction halts.
  • Brand Damage: Users blame your app, not the underlying infra.
  • Revenue Loss: Transaction fees and protocol revenue drop to zero.
100%
Downtime Risk
$10B+
TVL Exposed
02

Censorship & MEV Extraction

Your RPC provider becomes a centralized sequencer, censoring transactions or frontrunning your users. This violates crypto's core ethos and exposes you to regulatory capture.

  • Trust Assumption: You delegate transaction ordering to a third party.
  • User Exploitation: Providers can implement profit-maximizing MEV strategies at user expense.
  • Protocol Risk: Becomes a single point for OFAC compliance enforcement.
~100%
Censorship Power
$1B+
Annual MEV
03

Data Poisoning & State Inconsistency

A compromised or misconfigured RPC node serves incorrect chain data, causing smart contracts to execute on a false state. This is a silent, insidious failure.

  • Unchecked Assumption: Most dApps blindly trust a single RPC's eth_call responses.
  • Financial Loss: Leads to incorrect pricing in oracles and AMMs.
  • Detection Lag: The bug may only surface during high volatility or specific tx patterns.
0
Fault Tolerance
~500ms
Propagation Lag
04

The Performance Death Spiral

Network congestion causes your shared RPC endpoint's latency to spike from ~100ms to 10s+, creating a feedback loop of failed transactions and re-submissions that further clogs the queue.

  • Non-Linear Degradation: Performance collapses under load, not gracefully degrades.
  • Gas Wars: Users engage in wasteful priority fee bidding.
  • Abandonment: Users flee to competitors with more resilient infrastructure.
100x
Latency Spike
+300%
Gas Costs
05

Vendor Lock-In & Protocol Risk

Your dApp's logic becomes tightly coupled to proprietary RPC extensions (e.g., Alchemy's eth_getTransactionReceipts). Migrating providers requires a costly rewrite, leaving you hostage to pricing changes.

  • Architectural Debt: Custom APIs create switching costs that are 10-100x the initial integration effort.
  • Pricing Power: Providers can increase fees once you're embedded.
  • Innovation Lag: You're stuck on their roadmap, not the community's.
10-100x
Switching Cost
100%
Vendor Control
06

The Privacy Illusion

Your RPC provider has a complete graph of all user activity—wallet addresses, transaction history, and dApp interactions. This data is a goldmine for competitors and a liability for your users.

  • Data Monopoly: A single entity aggregates more user data than any on-chain analyst.
  • Leak Vectors: Data breaches or internal misuse are inevitable.
  • Regulatory Target: Becomes a honeypot for subpoenas and data requests.
100%
Activity Logged
1
Attack Surface
counter-argument
THE ARCHITECTURAL BLIND SPOT

Steelman: "But It's Just an API..."

Dismissing your RPC provider as a commodity API is the most common and catastrophic architectural mistake in Web3.

Your RPC is your consensus layer. It is the sole source of truth for your application's view of the blockchain. A compromised or degraded endpoint returns invalid state, causing your smart contracts to execute on false data. This is not a networking issue; it is a liveness and security failure.

Infrastructure is not a commodity. The difference between Alchemy's core stack and a public endpoint is the difference between a Formula 1 car and a scooter. It determines your latency, uptime, data consistency, and resistance to MEV. Your choice dictates your user's experience and your protocol's reliability.

Centralization is the default. Relying on a single provider like Infura or a monolithic service creates a single point of failure for your entire stack. The 2020 Infura outage didn't just break wallets; it fractured the network's state consensus for every dependent dApp and exchange.

Evidence: The Solana ecosystem's chronic instability is often a public RPC failure, not a chain halt. When public endpoints are overwhelmed, applications fail despite the underlying L1 being operational. Your uptime SLA is your provider's SLA.

takeaways
YOUR RPC IS YOUR SPOF

Architectural Imperatives: How to De-Risk

A single public RPC endpoint is a silent liability, exposing your protocol to censorship, downtime, and frontrunning.

01

The Problem: Public RPCs Are a Shared Attack Surface

Shared endpoints like Infura or Alchemy are centralized chokepoints. An outage or rate-limit attack on them is an outage for your entire protocol.

  • Single point of failure for $10B+ TVL applications.
  • Censorship risk: Provider policies can block your users.
  • No performance SLAs for free tiers, leading to ~500ms+ latency spikes.
100%
Shared Risk
0 SLA
Free Tier
02

The Solution: Multi-Provider Fallback & Load Balancing

Decouple from any single provider by implementing a failover RPC layer. Tools like Chainstack, Pocket Network, or a custom gateway route requests.

  • Eliminate downtime: Automatic failover between 3+ providers.
  • Optimize cost/performance: Route reads to cheap providers, writes to reliable ones.
  • Gain leverage: Avoid vendor lock-in and negotiate better rates.
99.99%
Target Uptime
3x
Redundancy
03

The Problem: MEV & Frontrunning Leakage

A predictable RPC endpoint leaks transaction order flow. Bots monitor public endpoints to frontrun your users' swaps on Uniswap or Aave.

  • Extracted value directly from your users' pockets.
  • Worse execution prices on every trade.
  • Erodes trust in your application's fairness.
$1B+
Annual MEV
>5%
Slippage Impact
04

The Solution: Private Transaction Routing & Bundling

Use a dedicated, private RPC with integrated MEV protection. Route transactions through services like Flashbots Protect, BloxRoute, or a Chainscore-managed gateway.

  • Submit directly to block builders, bypassing public mempools.
  • Guarantee transaction privacy until inclusion.
  • Access to backrun bundles for potential revenue sharing.
~0s
Mempool Time
95%
Frontrun Reduction
05

The Problem: Geopolitical & Regulatory Censorship

RPC providers are legal entities subject to jurisdiction. They can be compelled to geofilter traffic or censor specific smart contracts (e.g., Tornado Cash).

  • Loss of user base in entire regions.
  • Protocol fragility to regulatory shifts.
  • Violation of credibly neutral principles.
40+
Countries Blocked
High
Compliance Risk
06

The Solution: Decentralized RPC Networks & Client Diversity

Shift reliance to permissionless networks of node operators. Leverage Pocket Network, Chainscore's decentralized gateway, or run your own light client infrastructure.

  • Censorship resistance: Requests distributed across 1,000s of independent nodes.
  • Enhanced privacy: No single entity sees all user traffic.
  • Support protocol health by diversifying client infrastructure beyond Geth.
20K+
Node Providers
0
Central Authority
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