As a seasoned analyst with years of experience navigating the volatile and ever-evolving world of cryptocurrencies, I find myself both intrigued and concerned by the recent events surrounding the TON blockchain. The two significant outages within 24 hours are not just a blip on the radar but rather a red flag that warrants attention.
Over a 24-hour period, the TON blockchain encountered two major disruptions, causing transaction pauses as a result of excessive activity generated by the DOGS token minting process. These incidents have sparked doubts about the network’s capacity to manage heavy traffic.
Second Disruption in 24 Hours
As a crypto investor, I found myself in a frustrating situation when the TON blockchain, the foundation of Toncoin (TON), encountered its second major disruption within a day, causing a halt in block production for over three hours. The root cause, initially identified as the heavy load from the minting of the DOGS token, left the network incapable of processing transactions, as reported by the TON Network team on X.com.
At 19:19 UTC, a disruption occurred that necessitated the TON Core team to advise mainnet validators to reboot their nodes by issuing an update. However hard they tried to fix the problem, the network continued to face difficulties in resuming regular functioning.
Impact on Toncoin and Network Performance
Despite the disruptions, Toncoin (TON) showed resilience, with only a slight 0.99% drop over a span of four hours and a more substantial 4% decrease in the last 24 hours according to CoinDesk. This is noteworthy given its past reactions, such as a 2% fall right after the initial disruption. Over the course of the past four days, there has been a cumulative decrease of 16.5% for TON, indicating that recent events have had an effect on investor confidence.
On Wednesday, an early interruption in TON‘s trading, lasting around seven hours, occurred during Asian market hours. This disruption, coinciding with the DOGS airdrop, had limited long-term impact on TON’s price. The high volume of traffic caused by the airdrop was also a contributing factor to this incident.
Telegram and TON
Originally developed by Telegram and later transferred to community control due to regulatory concerns, the TON blockchain has experienced remarkable growth in recent times. The surge of Toncoin into the top 10 digital currencies based on market capitalization underscores its growing significance within the crypto space. Although Telegram operates independently from TON, users of the platform continue to frequently utilize the associated token.
Ongoing Challenges
1. Lately, the network’s interruptions highlight the difficulties it faces, specifically with managing large transaction numbers. The network is already strained because of the arrest of Telegram’s founder and chief executive officer, Pavel Durov. The DOGS airdrop was intended to be part of a broader effort to draw attention to Durov’s situation. Although disruptions in blockchain systems aren’t unusual, they frequently point to underlying problems that need to be addressed for long-term stability. Despite Toncoin’s price remaining strong so far, these repeated interruptions could have significant long-term consequences if the issues continue.
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2024-08-29 13:04