Market resets as Solana suffers outage.
The crash might have tainted its previous rally but it also laid bare a more fundamental problem within the network.
Solana had intermittent downtime after an exhaustion attack. Pushed as a more scalable alternative to Ethereum, its ability to transact so quickly and cheaply comes across as a trade-off.
A brief look at the outage and how the markets responded to it
According to @SolanaStatus and #CryptoTwitter, Solana was not able to process any transactions. This happened due to resource exhaustion which caused a denial of service making Solana blockchain inaccessible to its intended users.
Resource exhaustion attacks are computer security exploits that crash, hang, or otherwise interfere with the targeted program or system. They are a form of denial-of-service attack where lots of requests can overwhelm the server causing it to crash and become unavailable.
After a downtime of 18 hrs, Solana validator community successfully completed a restart of Mainnet Beta after an upgrade to 1.6.25. Dapps, block explorers, and supporting systems will recover over the next several hours, at which point full functionality should be restored.
What went wrong?
According to Solana Labs CEO Anatoly Yakovenko, the downtime was caused by a flood of transactions, at the time nearing around 400,000 TPS, sourced from bots on DeFi protocol Raydium.
1. These transactions flooded the transaction processing queue, and a lack of prioritization of network-critical messaging caused the network to start forking.
2. This forking led to excessive memory consumption, causing some validator nodes to go offline. Engineers across the ecosystem attempted to stabilize the network but were unsuccessful.
3. Following this, the validator community elected to coordinate a restart of the network. A new update was released by Solana and validators were asked to upgrade to mainnet 1.6.25.
Previous such events on Solana
This isn’t the first time that Solana has experienced downtime. On Sep 2, Solana suffered from an intermittent stability issue which caused 62 mins of less throughput on the network.
Effect on price
Meanwhile, the price of $SOL token got affected due to this network outage & Solana took a dip of -10% following the series of events when the outage was announced. This marked a halt to Solana's recent upward momentum.
TVL on Solana is exploding
On the other side, the TVL on Solana is skyrocketing as it has increased by 600% from $1.84B to $11.05B in the last 30 days, amidst the traction on the dapps deployed platform.
Distributed networks are prone to hacks and attacks, a lot depends on the design of the blockchain that can make them either faster or secure.
Arbitrum one suffered from sequencer downtime
Arbitrum Sequencer too was offline for approximately 45 minutes. This happened due to a bug causing the Sequencer to get stuck when it received a large burst of transactions in a short period of time. The issue has been identified and a fix has been deployed.
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