Canto, a Layer-1 blockchain built on the Cosmos network, suffered a significant outage on August 10, bringing all network operations to a halt. The disruption led to an abrupt cessation of transactions within the ecosystem. Data from Cantoscan indicated that the last processed transaction occurred at block height 10847517.
What Is Happening with Canto?
The latest statement from the team identified the consensus mechanism as the root cause of the issue. A consensus mechanism is crucial in blockchain networks for validating transactions and ensuring security.
Despite the severity of the outage, the development team reassured users that their funds remained safe. To address the issue, a planned upgrade is scheduled for August 12. The Canto team noted that users would regain access to all usual activities once the network restarts.
However, the team has not yet provided a more detailed explanation of the problem. The outage caused CANTO’s token price to plunge to $0.036. Nonetheless, the market responded positively to news of the planned fix, with the token price rebounding to $0.045, marking a 13.5% recovery within 24 hours.
Details on the Issue
In addition to affecting CANTO’s token price, the outage also impacted the decentralized finance (DeFi) ecosystem on the Canto blockchain. Data from DefiLlama showed a decline in the total value locked (TVL) in Canto’s DeFi platforms from $16.34 million on August 10 to $15.61 million as of August 12.
Launched in August 2022, Canto quickly gained traction for its comprehensive DeFi services, including lending, staking, and liquidity provision. Initially, the platform aimed to join the Ethereum ecosystem as a Layer-2 solution, but this plan was reversed in March 2024, leading Canto to operate as a Layer-1 network.
Takeaways for Users
Key points for users to consider:
- Funds remain secure despite the outage.
- A planned network upgrade will occur on August 12.
- Users can expect normal activities to resume post-upgrade.
- CANTO token saw a rapid price recovery after the planned fix announcement.
The planned upgrade and the team’s reassurances have brought some relief to the community, though detailed explanations of the underlying issues remain awaited.