On April 4, an error within Ethereum layer-2 scaling solution Starknet caused a four-hour block outage, as revealed by the protocol team in a statement on April 5. The error was attributed to a rounding error bug that led to a reorganization of blocks, causing the transaction backlog to reach full capacity. During this time, new transactions could not be processed and were rejected, with some transactions being reverted due to changing parameters such as timestamps. The backlog was eventually cleared, and normal network operations resumed after the issue was resolved. Starknet is in communication with relevant parties to prevent further incidents.
The outage led to a drop in the price of Starknet to $1.82, though it increased to $1.91 by the time of publication according to CoinGecko data. This incident adds to a series of challenges faced by Starknet, including delays in early March following Ethereum’s Dencun upgrade aimed at reducing Layer-2 rollup fees. In January, Starknet’s parent company StarkWare Industries saw its co-founder and CEO Uri Kolodny stepping down from his role due to personal medical challenges, with Eli Ben-Sasson taking over as the company’s president. Despite these challenges, Kolodny expressed confidence in Ben-Sasson’s leadership to steer StarkWare forward.
Starknet is scheduled to unlock its cryptocurrency $STRK in April following a 728 million airdrop in February, where over 220 million tokens were claimed within hours of the launch. With a market cap of nearly $1.38 billion and a fully diluted valuation of $18.9 billion, Starknet is positioned alongside other prominent layer-2 protocols. Founded in 2018, StarkWare Industries specializes in zero-knowledge cryptographic proofs to tackle scalability issues. The Ethereum layer-2 protocol aims to offer low costs, fast transactions, and massive scalability, positioning it as a promising player in the blockchain space. Those eligible for the initial round of STRK allocation have until June 20 to claim their tokens, and a comprehensive analysis of the outage incident will be provided by Starknet at a later date.
Despite the challenges faced by Starknet, the protocol remains focused on its goal of providing scalable solutions on the Ethereum blockchain. The recent error that led to the block outage highlighted the need for ongoing monitoring and maintenance to ensure network stability. Starknet’s resilience in resolving the issue swiftly and resuming normal operations demonstrates its commitment to addressing setbacks effectively. With the imminent launch of its cryptocurrency and a growing community of users, Starknet is poised to continue its trajectory of growth and innovation in the rapidly evolving blockchain ecosystem. The leadership transition within StarkWare Industries and the protocol’s response to obstacles underscore its adaptability and dedication to achieving its vision of delivering efficient and cost-effective solutions for decentralized applications.
