Starknet, the $8 billion layer-2 solution for Ethereum, is experiencing its first major outage, with the network failing to produce new blocks for several hours. According to data from Starkscan, the network ceased generating new blocks around 8:57 (GMT+3).
While Starknet’s status page shows no reported issues, the cause of the outage remains unknown. In response to the news, the project’s native token, STRK, declined by over 3.5% and is currently trading at $1.8.
Starknet commented on the situation, “we identified a rounding error bug that led to a reorg of blocks. Starknet’s block production continued as usual. However, the reorg caused the transaction backlog to reach full capacity.”
It further stated that some new transactions could not be accepted for processing and were therefore rejected. Moreover, changes in parameters (e.g., timestamps) also reverted some transactions. Now, the backlog is cleared, and the network has resumed normally.
Starknet development, launched in November 2021 by StarkWare, is a layer-2 network of Ethereum and applications. The project aims for consistent growth in transactions and has raised $225 million from investors, including GreenOaks Capital, Tiger Global, Paradigm, and Sequoia Capital, reaching a valuation of $8 billion.
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