The recent two-day outage of the Degen Chain resulted in a severe disruption as the network failed to produce a block for over 53 hours, rendering the network and its associated applications unusable. This outage was caused by a configuration error that affected both Degen Chain and the gaming network Apex. Efforts are currently underway to resynchronize nodes from the genesis block to restore service and minimize impact to users. The network is expected to resume functionality by 1:00 p.m. UTC on May 15. The downtime directly impacted various decentralized applications hosted by the blockchain, leading to a notable decline in the native DEGEN token’s value.
The incident has reignited discussions in the crypto community regarding the viability and value of layer-3 networks. Polygon CEO Marc Boiron has argued that L3 networks exist to take value away from Ethereum and onto the layer-2 networks they are built on, potentially compromising Ethereum’s security. On the other hand, proponents of layer-3 solutions, like Arbitrum Foundation researcher Patrick McCorry, believe these networks are beneficial as they use layer-2 networks as settlement layers, making transactions cheaper. Boiron emphasized that Polygon focuses on scaling Ethereum and ensuring fair value distribution between Polygon and Ethereum.
Degen Chain, a layer-3 blockchain settling transactions on a layer-2 network, has experienced an increase in activity recently with nearly $100 million in transaction volume. Since its inception, the network has processed over 272,000 unique transactions and created over 7,500 contracts and 2,300 tokens. However, many of these tokens have been linked to rug pulls and scams. Applications like DegenSwap, Mint Club, and Relay Bridge were all inoperable during the recent downtime, impacting the performance of the network and contributing to the decline in the DEGEN token’s value.
Regarding the recent outage of the Degen Chain, the network stalled due to a configuration error that affected block production. Degen Chain collaborated with its development partner, Conduit, to identify and address the issue. Restoring service required resynchronizing nodes from the genesis block to ensure all data affected by the reorganization is restored. The restoration process is expected to be completed by 1:00 p.m. UTC on May 15, allowing the network to resume functionality and minimize the impact on users.
The disruption caused by the recent outage of the Degen Chain has highlighted the importance of addressing potential vulnerabilities in layer-3 blockchains and their impact on the broader crypto ecosystem. Discussions surrounding the value and viability of layer-3 networks continue to evolve, with conflicting viewpoints on their role in scaling Ethereum and distributing value fairly between different layers. As the network works towards resuming functionality, the focus remains on ensuring the security and stability of layer-3 solutions to prevent future disruptions and protect user assets.
