On Sunday, January 22nd, the Cardano blockchain suffered an outage of half of its entire network. The event was big crypto news, especially because no official explanation has thus far been given. The network was automatically back online within minutes, but traders are still alarmed about the implications. Since every cryptocurrency platform is based entirely around being continuously online, an outage could be a serious problem.
In more detail, it was the block-producing nodes that were impacted by the outage. Each node is a separate, but essential part of the blockchain, allowing for cryptocurrency transactions to be processed. Without nodes the Cardano blockchain and its cryptocurrency exchange reviews would, very literally, cease to exist.
The good news is that the system recovered gracefully within a few minutes. Additionally, the outage more than anything demonstrated just why decentralisation is so important.
If it was a traditional bank that had suffered an outage, the entire system would likely have gone offline. Banks process all their transactions on a single, isolated server system, meaning that an outage could potentially take down everything in a single, fell swoop. This possibility is one of the dangers of centralisation that can’t be ignored.
The Cardano network, however, is based around blockchain, as with all cryptocurrencies. The design of blockchain means that even if a partial outage is experienced, the network can continue to operate. Which is to say, since the entire system isn’t based around a single sever, it is far more unlikely that a complete outage ever be experienced. Hence, more than anything the outage only demonstrated just how important decentralisation really is.
With all of that being said, the Solana blockchain experienced a total outage in 2022. The developers explained that the outage might have been due to a node overload, or possibly due to faulty code. Either way, the Solana network did get back online, but only after a few hours. Since the outage it has been reported that the system is now far more stable.
Hence, that the Cardano system recovered so quickly is reason to celebrate. It was reported that roughly 60% of all nodes went offline, only for recovery to be achieved in a few minutes. This is proof, many are saying, of how a superior blockchain can withstand even a major challenge.
According to Cardano chief technology officer, Pi Lanningham, the system has proven to be astoundingly resilient. He explained that, even during the peak of the outage, the remaining nodes had continued to produce blocks. He stressed that the remaining blocks had maintained trade as best they could, ensuring that as little impact as possible was actually felt. Learn more about Cardano coin in this detailed Cardano review.
It is, perhaps, news of just how resilient the blockchain is that has seen a reasonably positive market reaction. The Cardano native token, ADA, was up slightly in the 24 hours after the partial outage. An interesting reaction, and another sign that the crypto market can maintain growth even in challenging circumstances.