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Solana (SOL) investors are now suffering double-digit losses after another period of network downtime. Blockchain turned off around 19:55 GMT on Wednesday The reason for this is a network error that prevented the production of blocks.
History of Solana
The Solana blockchain was launched in 2017, and its SOL token began trading in the spring of 2020. Thanks to the general bullish sentiment in the cryptocurrency markets after the pandemic collapse and hype around this network, the cost of SOL in a short time rose from less than $ 1 to $ 259. Before the start of trading, the coin was distributed on airdrops.
Such rapid growth could not be supported by the equally rapid development of the network. 2 years since the launch of trading is not enough time for the rational gradual development of the blockchain and its ecosystem.
Problems of the Solana blockchain
Solana is going through a difficult year, because in 2022 this is the seventh failure in its network.
There is no end to the problems of Solana, a blockchain specializing in DeFi and NFT projects that has been suffering for months from some systemic issues that are slowing down its use and affecting its effectiveness.
Less than a month has passed since the last failure that affected Solana, causing a break in the work of blockchain services for more than seven hours on May 1.
In that case, it was an attack by bots aimed at the Candy service, a tool for mining NFT on the blockchain. Less than a month later, a new bug stopped Solana’s activities, which raises serious doubts about the effectiveness of this blockchain, which is the fifth largest total blocked asset value (TVL).
Solana has become synonymous with frequent blackouts and overloads in recent months as the “Ethereum Killer,” as it’s been nicknamed, becomes a popular platform for non-fungible tokens (NFT) and decentralized finance (DeFi). Investors flock to this network because of its low transaction fees and noticeable scalability.
The most recent incident occurred on April 30, when NFT mining bots flooded the blockchain with a stream of transactions. Before Wednesday’s shutdown, there were at least seven other episodes, including a 47-hour glitch earlier this year, two crashes in December 2021 and a denial-of-service attack last September.
The reason for the latest fall of Solana
On Twitter, Solana co-founder Anatoly Yakovenko and other developers attributed Wednesday’s glitch to an error in the function of sustainable one-time blockchain transactions. This led to non-determinism, meaning that different nodes generated different results for the same block, and consensus could not be reached.
According to Solana’s status page, the network was unavailable for four hours and ten minutes as validators were able to successfully restart the main network around 24:00 GMT.
The network and user tools remained secure as the durable one-time number feature was disabled to reconnect the network. Yakovenko noted that in the near future changes are coming to combat this issue.
This time, the bug was only fixed a few hours later, according to the company’s website, which reported that the system was disabled at 13:00 (CET) and restarted by validators only at 17:00 (CET).
“The instruction of a strong disposable number caused part of the network to consider the block invalid, consensus could not be formed. The network reboots with the persistent one-time number feature disabled. A fix for persistent disposable numbers will be released as soon as possible,” Yakovenko tweeted on June 1, 2022.
Only by disabling this function by validators could the network be restarted. Yakovenko also said that in the near future this problem will be corrected to avoid similar problems in the future.
Solana Lab’s head of communications, Austin Federa, said that a sustainable one-time number represents an “incredibly small percentage” of transactions made on the Solana blockchain.
“It was probably a mistake that existed for a while, but never became a problem because it’s not something that is used by most people.”
One of the validators of Solana – Stakewiz – noted that the problem with this type of transaction has long been known, because of which the blockchain has been repeatedly stopped, but for some reason the developers are not in a hurry to solve it.
SOL loses 12%
All of these problems with the Solana network underlie a significant drop in SOL from a high of over $200 to below $40 per month.only months. Solana was mentioned by many experts at the beginning of the year as one of the most dangerous rivals of Ethereum precisely because of the promising NFT market. However, it now seems that other blockchains, such as Cardano or Avalanche, have proven to be more reliable.
Even though today the cryptocurrency market as a whole has fallen significantly, losing 4.79% of the total market capitalization per day, SOL recorded a greater drop in prices than many of its competitors.
For now, Ethereum’s competitor has fallen 11.70% in the past 24 hours at the current price of $39.76 on CoinMarketCap. That’s a sharp drop from the all-time high above $259.96 set in November 2021.
Author: Elvir, Analyst at Freedman Club Crypto News
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