Stellar Network Faces Outage Following Offline Validators, Coinbase to Investigate
After a network freeze in 2019, the Stellar network was hit by a new crisis. According to data made public, it was unable to process transactions for hours.
The price of XLM drops
The official update from Stellar shows that some critical validators have been taken off the network due to an unexplained technical failure. At 13:26 UTC, the engineers of the Stellar Development Fund (Homeless) reviewed the technical issues that led to the discontinuation of validators. The blockchain also cannot process new blocks because the validators are currently offline.
Currently, the update provided by the network has confirmed that they do not know when they will fix the problem, so that the transaction system will return to normal. Users noted that the last transaction took place over 10 hours ago.
Waiting, Bitstamp the cryptocurrency exchange has temporarily halted XLM, Stellar’s native token, deposits and withdrawals due to lingering issues. The price of the token has fallen from $ 0.57 to around $ 0.49 since the news broke.
As we have already established, the ongoing incident is not unprecedented for Stellar. In 2019, the network suddenly froze, and for two hours, transactions became difficult to verify. While the Stellar Development Foundation nodes were not responsible for the downtime, they did reveal the fragility of the Stellar blockchain network. In Bitcoin or other PoW blockchains, such downtime would be unthinkable.
The current synchronizations between validators to keep a network running depend on complex encryption and Stellar is no different. However, small software bugs can cause intermittent disruptions.
Another example is the Solana blockchain, which in December 2020 also faced a 6-hour shutdown.
Coinbase to investigate the issue
As the bug is fixed, Coinbase confirmed that they are looking into the matter. In March 2019, Stellar (XLM) was listed on the Coinbase exchange network.
The United States Securities and Exchange Commission approved Coinbase on a Nasdaq listing last week, which represents tacit regulatory acceptance for trading on its cryptocurrency website. This decision is a victory for the defenders of digital currency.
Instead of an initial public offering, the San Francisco-based company plans to start trading on April 14. After the crackdown on the IPO in March, the company set up the US Commodity Futures Trading Commission.
During its last week of trading with the Nasdaq in the private sector, Coinbase was valued to about $ 90 billion. A direct listing will make the company available to the public.
In the middle of regulation uncertainties, Coinbase announced last week that it was setting up an Indian office after rumors that an Indian administration was preparing to ban cryptos.
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