Solana’s blockchain suffers another shutdown, its cryptocurrency plummets

On the early evening of Wednesday, the blockchain was closed due to a “bug” in the production of blocks by the validators. Since then, its cryptocurrency has lost more than 12%.

The Solana blockchain is in trouble again. On the early evening of Wednesday, the blockchain was closed due to a “bug” in the production of blocks by the validators. For four long hours, no transactions were completed and his cryptocurrency, the solana, also fell.

This cryptocurrency is in the top 10 of the largest cryptocurrencies in terms of capitalization according to data from Coinmarketcap, with a capitalization of 13 billion. Faced with the shutdown of the blockchain, it has fallen 12% since Wednesday, when its price had reached its high point of the day in the early afternoon, to 45.50 dollars, and then dropped to 38.42 dollars at seven in the morning. .

At the time of writing, the price of the cryptocurrency is close to $ 39. These levels are well below what this cryptocurrency, launched in 2020, has experienced, which had reached its highest level at $ 259 in mid-June.

What happened ? On Wednesday, Solana’s blockchain announced on her Twitter account that her block production had been stopped. Recall that, a bit like a digital book, the blockchain (or chain of blocks) brings together all the blocks (transactions) of a network, from the oldest to the most recent. The two best known blockchains are Bitcoin (and its own bitcoin cryptocurrency) and Ethereum (and its own ether cryptocurrency).

According to blockchain founder Anatoly Yakovenko, it was a bug in the blockchain’s “durable nonce function”, which caused part of the network “to consider the block as invalid, resulting in” no blocks “being formed.

What is a durable blockchain nonce? Response items can be found on Solana’s technical site. “A classic transaction includes a blockhash that expires 2 minutes after being sent. In some cases, it may be necessary to pause a transaction for a certain amount of time before being sent. Is used,” explains the Solana blockchain.

Resolving this issue required validators to disable this feature and restart the entire network to restore and function the durable nonces.

Already 8 outages on the Solana network

This isn’t the first time Solana’s blockchain has experienced an outage, becoming the eighth outage in its network.

In early May, due to an influx of bots on its blockchain, it dropped for 7 hours. Similarly, in September, the network was shut down by nearly 6pm for failing to handle a record number of transactions sent to one of its protocols for the launch of a new token.

How to explain these repeated failures? One element of the answer can be found in the fact that Solana is still a recent blockchain, since it was launched in 2020. The latter particularly wishes to position itself as a competitor to the Ethereum blockchain, in particular by offering many services in decentralized finance (DeFi ).

According to data from the DefiLlama platform, the Total Locked Value (TVL) of the Solana blockchain also took a hit yesterday, which went from 4.35 billion dollars to 4.14 billion dollars, thus losing almost 5%. Last December, her TVL hit its all-time high, at 15 billion. From this record, the amount of his TVL has plummeted.

Recall that in decentralized finance TVL corresponds to funds blocked in various protocols. It is an indicator of the economic health of a DeFi protocol that shows the interest of individuals and investors.

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