Solana experienced another network outage as crypto markets bled on Friday, causing panic among traders and DeFi users in the crypto community.
The Solana network has experienced multiple issues over the past few months, and this is currently the second network incident in January. But unlike others, the most recent outage lasted about 48 hours at a time.
The Solana team stated that they first noticed the outage on Friday, January 21, 2022 at around 00:00.
The team wrote in the press: “The mainnet beta cluster is experiencing some performance degradation and we are currently investigating this issue.”
The investigation lasted more than 24 hours and the team determined the cause at 17:55 on Saturday.
According to a brief report from the Solana team, the issue was caused by excessive repetitive trading by the bot.
The issue was resolved after v1 was released and adopted at around 16:19 yesterday (Sunday) and is intended to mitigate the worst of the issue.
The Solana team said: “These upcoming releases are designed to improve the state of the network, with more improvements expected to be rolled out over the next 8-12 weeks. Many of these features are currently live on the Testnet, where they are undergoing rigorous testing .”
The recent Solana network has resulted in ridicule for its status as an Ethereum killer.
Mark Jeffery, author of HarperCollins, believes Solana has pulled out of the competition early due to ongoing network outages.
Another day, another 48 hour outage in Solana.
This is the sixth time this has happened in three months.
I have no confidence in it right now. This is the new EOS.
The battle is now between ETH, BSC, Fantom, Avalanche and Terra.
—@markjeffrey January 23, 2022
Technology investor Daniel Cheung feels the same way:
Solana had multiple downtimes within 48 hours, which made me question the viability of the overall structure.
It is clear that the winning public chain in the future is likely to be a blockchain with a modular architecture.
Be optimistic about ETH 2.0, the metaverse ecosystem.
— Daniel Cheung (@HighCoinviction) January 22, 2022
While the network issues have been resolved, on-chain DeFi users faced massive liquidations within 48 hours of network downtime and had to pay for it.
The outage of the Solana network over the weekend comes at one of the worst times for the crypto market. The price has fallen sharply, liquidation is in sight, and users are looking for ways to recover their losses to avoid being forced to liquidate.
Unfortunately, users of the Solana network have taken out loans for collateralized assets such as SOL from lending platforms such as Solend, and have been unable to preserve their assets during a congested market crash on-chain. A massive liquidation ensued, and users could only afford their losses.
Can we all feel that @solana has been down for about 48 hours?
Tried over 100 times to pay off the Solend loan and failed.
Can’t even send friends some USDC for dinner with @phantom.
It’s moments like these that make you appreciate Bitcoin’s fee market.
—@zallarak January 22, 2022
But Solender said it sympathizes with users and is currently coordinating affected users.
The Solana-based lending protocol tweeted: “We are painfully aware that users cannot avoid being liquidated due to network congestion, and we are working on a solution.”
What is DeFi?
The first entry among the top DeFi interview questions would obviously point towards its definition. Decentralized finance is actually a financial ecosystem developed over the Ethereum blockchain network with various protocols and platforms. DeFi helps in easily moving around cryptocurrency tokens. At the same time, it also helps in trading, lending, and borrowing cryptocurrency tokens.
What does the future of DeFi look like?
As of now, there is no specific answer to this question, but the future looks bright for DeFi as it is slowly becoming mainstream. Technological advancement in the underlying infrastructure for DeFi is faster than ever with new innovative ideas popping up daily. 2021 looks like a great year for DeFi seeing the recent developments.
Is DeFi legal?
Yes, almost all DeFi projects or protocols need to abide by financial regulatory measures licenses to function regardless of whether they’re centralized or decentralized. Thanks to DeFi, financial watchdogs (e.g., the SEC) have started to notice the crypto space more than ever.
Is DeFi safe?
Yes, almost every protocol undergoes smart contract audits to ensure the codebase is secure and free from bugs and vulnerabilities. Majority of the popular protocols adopt strict security measures to ensure your crypto assets remain safe. Still, it’s advisable to conduct your due research before investing in any project.
Do I need some kind of cryptocurrency to participate in DeFi?
Yes, you would need cryptocurrency to participate in DeFi. Since Ethereum is the platform of choice, most DeFi projects’ tokens are based on the ERC-20 standard. Hence, it would be better for you to hold some ether for the sake of ease.
Do I need a crypto wallet for DeFi?
Yes, a digital wallet is a prerequisite for you to be able to dabble in the field of DeFi. There are several wallet options available for interacting with DeFi applications — MetaMask, WalletConnect, TrustWallet and Argent being the popular ones.
What are the important benefits of DeFi?
The primary objective of DeFi focuses on resolving the issues evident in traditional finance. Traditional finance depends on intermediaries such as banks. However, DeFi applications rely on code for specifying the resolution of any potential dispute. Subsequently, users have the ability to maintain comprehensive control over their funds. This can help in reducing costs related to use of financial services products to ensure a frictionless financial system.
The deployment of DeFi on blockchain takes away any specific point of failure, and data can be spread easily across various nodes. So, each node has copies of transactions carried out on the network. Therefore, it is difficult to impose censorship and a possible shutdown of service. The most significant benefit of DeFi points out to the improved accessibility of financial services for a broader audience.
How do DeFi applications work?
Another top mention among DeFi questions to ask in an interview definitely points out that it’s working. DeFi works through the development of dApps on a blockchain network like Ethereum and using smart contracts for automation. By using the two facets, DeFi applications could easily accommodate various financial services on a specific network. Presently, there are many notable examples of dApps tailored for lending automated loans known as crypto loans. Many apps related to DeFi also include the creation of stablecoins, investment options, asset exchange, and others available presently.