Ethereum [ETH]: Outage plagues the network as it has trouble finalizing transactions
- Ethereum’s beacon chain runs into problems.
- Validators remain undeterred. Traders begin to take short positions.
Compared to other cryptocurrency networks, the Ethereum [ETH] protocol has run smoothly for the most part. However, in recent times, it was observed that Ethereum was facing some problems on its beacon chain.
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According to 12 May data, the beacon chain of the primary Ethereum network encountered an issue for approximately 30 minutes. It is currently being investigated by the developers.
What’s shakin beacon
One of the developers stated that the beacon chain stopped finalizing transactions for about thirty minutes, but the cause of this issue was unknown. “Finalizing” refers to the process where transactions are confirmed and added to the blockchain.
According to the developers, even though the finalization process has stopped, regular transactions on the network will continue as usual.
The developers identified certain areas that could be improved in terms of state caching. The node’s performance is expected to improve with the implementation of an enhanced cache
There was no immediate action required from stakers or node operators as the chain became stable.
The temporary halt in the finalization of the beacon chain does not have any immediate impact on Ethereum transactions or the network’s overall stability. The chain is designed to continue processing transactions as usual until the issue is resolved.
However, the incident highlights the importance of ongoing development and improvement of state caching in order to enhance the performance of the network during times of degradation.
Despite the problems on the Ethereum network, validators continued to show interest in the network. Over the last week, the number of validators on the network grew by 0.87%. At press time, there were 566,559 addresses on the Ethereum network.
Traders remain skeptical
However, ETH didn’t observe the same level of positivity. In terms of price, ETH declined by 3.10% in the last 24 hours. Traders didn’t show any optimism either.
Over the last few days, the number of short positions made against Ethereum has increased.
Realistic or not, here’s ETH’s market cap in BTC terms
This increase in bearish sentiment accompanied a massive decline in Ethereum’s Implied Volatility (IV) as well.
According to GreeksLive’s data, Ethereum’s short-term IV is at an all-time low.