Ethereum Network Recovers after Two Consecutive Performance Issues Reported in 24 Hours
The Ethereum network has recovered after suffering from two performance issues in the past 24 hours that resulted in blocks not being finalized.
In a Friday tweet, pseudonymous Ethereum developer Terence.eth revealed that the network has resumed finalizing blocks, adding that clients, the software that runs Ethereum nodes, are releasing updates to address the issue.
“Mainnet just finalized but not out of the woods. Clients are releasing patches today. Stay tuned,” Terence.eth said.
Who said they copied each other? Each client most definitely had different things to tackle any issues.— Ethprofit.eth 🦇🔊 (@Ethprofit) May 12, 2023
The blockchain experienced what is being described as technical issues on Friday that caused the network to stop finalizing blocks for over an hour.
It was the second such incident within 24 hours, which sparked major security concerns for users of the Ethereum blockchain, the second-largest blockchain by market capitalization.
Finalized blocks play an essential role in providing proof-of-work validation, making networks like Ethereum easy to trust and reliable to use.
In Ethereum, finality takes roughly 15 minutes and refers to the guarantee that a block cannot be altered or removed from the blockchain without burning at least 33% of the total staked ETH, according to the Ethereum Foundation.
Despite its technical hiccup, the Ethereum network resumed finalizing blocks and continues to operate effectively.
Ethereum Reliability at Stake Amid Performance Issues
Ethereum’s performance issues within the past week could stain its credibility in the eyes of builders.
Network reliability is essential for blockchains looking to attract users and capital, and Ethereum has historically been viewed as among the most stable networks in the market.
Some of the services built atop Ethereum, such as DYdX, a leading crypto exchange platform, had to pause deposits temporarily due to Ethereum’s lack of finality.
“The second wave is over, but I fully expect a third,” Superphiz.eth, a self-proclaimed “Ethereum Beacon Chain community health consultant, tweeted after today’s incident.
The Ethereum guru also advised validators to increase their hardware specs if they can, switch to a minority client, and apply patches when they become available. He added:
“But really don’t worry too much. As bad as this looks, the chain keeps going and eventually finalizes.”
The pinnacle of a well decentralized system is that it can take a beating and keep going. Ethereum choked but kept going. We can continue to improve by getting staked Ether away from industry and putting those coins to work staking in homes by people passionate about Ethereum.— superphiz.eth 🦇🔊🛡️ (@superphiz) May 13, 2023
Ethereum has become an integral part of the blockchain ecosystem, hosting multi-billion-dollar networks of financial infrastructure and other applications.
According to data by DefiLlama, there is currently over $27 billion in Total Value Locked (TVL) across the Ethereum network.
Liquid staking platform Lido Finance accounts for the bulk majority of that figure, with more than $12 billion in TVL. MakerDAO, AAVE, and Curve Finance are the next three biggest DeFi platforms on Ethereum.
Meanwhile, Ethereum’s native token ETH is trading at around $1,800, up by 2.0% over the past day. The token is down by almost 7% over the past week.