The Ethereum layer 3 blockchain, Degen Chain, has experienced a significant disruption, causing the network and its applications to become completely unusable for over 53 hours. The block production and validation process came to a halt at 8:15 pm UTC on May 12, and there have been no new blocks produced since then.
Degen Chain is one of the few layer-3 blockchains that settle transactions on a layer-2 network. It relies on the Ethereum layer-2 chain Base for settlements and utilizes the AnyTrust protocol for data availability functions.
According to an announcement made by the official Degen Chain account on May 14, efforts are being made to resolve the downtime issue in collaboration with their development partner, Conduit, a rollup infrastructure platform. The downtime problem was caused by a “custom config change” that affected both Degen Chain and the gaming network Apex, leading to the suspension of block production.
Degen Chain is currently in the process of resynchronizing its nodes from the genesis block, which is the first block on the network. Conduit stated that they are working with both teams and Offchain Labs to restore service and minimize the impact on users.
The network is expected to resume functionality after the resynchronization process, which is scheduled for 1:00 pm UTC on May 15 (6:00 am PST on May 15), according to Degen Chain.
Degen Chain, initially developed for its native memecoin called Degen (DEGEN), also hosts various decentralized applications, including DegenSwap, Mint Club, and the bridging service Relay bridge. Unfortunately, all of these applications are currently non-operational due to the blockchain’s downtime.
As a result of the disruption, the native DEGEN token has experienced a 24% decline in value from its seven-day high of $0.02 on May 13, according to CoinGecko data.
Layer-3 blockchains have been a topic of debate in the crypto industry, with opinions divided on their value. Polygon CEO Marc Boiron has argued that layer 3s mainly serve to divert value from Ethereum onto layer 2s. Conversely, proponents of layer 3s, like Arbitrum Foundation researcher Patrick McCorry, believe they offer significant advantages as they act as a settlement layer on layer-2 networks, thereby reducing transaction costs.
In conclusion, the recent disruption on Degen Chain has had a significant impact on the network and its applications, while also affecting the value of its native DEGEN token. Efforts are underway to rectify the issue and restore functionality to the blockchain. The debate regarding the value and purpose of layer-3 blockchains continues within the crypto industry.