Layer-3 network Degen Chain hasn’t produced a block in 53 hours

The Ethereum layer 3 blockchain Degen Chain has been inactive for over 53 hours, causing a complete shutdown of the network and its applications. The issue, traced back to a "custom config change," has halted block production and data availability functions. The network's nodes are currently resynchronizing, with an estimated resumption time of 1:00 pm UTC on May 15. Degen Chain's native token, DEGEN, has declined by 24% as a result of the outage, which has also impacted decentralized applications such as DegenSwap and Mint Club. The incident highlights ongoing industry debates about the role of layer 3 blockchains.

Ethereum Layer 3 Blockchain Degen Chain Remains Crippled, Applications Offline for Over 53 Hours

In a major blow to the Ethereum ecosystem, the layer 3 blockchain Degen Chain has been rendered completely inoperable for over 53 hours, leaving its applications and the entire network at a standstill.

As of 8:15 pm UTC on May 12, Degen Chain abruptly ceased validating transactions and producing new blocks, according to its block explorer. This unprecedented outage has paralyzed the network, disrupting the functionality of all applications built on it.

Degen Chain, one of a select few layer 3 blockchains, utilizes the Ethereum layer 2 chain Base for transaction settlement and the AnyTrust protocol for data availability. However, a "custom config change" triggered a catastrophic issue that halted block production on both Degen Chain and the gaming network Apex, as confirmed by its development partner Conduit.

Conduit has since disclosed that Degen Chain nodes are currently resynchronizing from the genesis block, a time-consuming process that could delay the network's restoration for several more hours.

"We're working with both teams and Offchain Labs to restore service and minimize impact to users," Conduit stated via a social media post.

Degen Chain has set a tentative target of 1:00 pm UTC on May 15 (6:00 am PST on May 15) for the network to resume normal operations after the resync is completed.

The prolonged outage has had a significant impact on Degen Chain's native token, DEGEN. CoinGecko data shows that DEGEN has plummeted 24% from its seven-day high of $0.02 on May 13 to its current value of $0.015.

The Layer 3 blockchain concept has been a subject of controversy in the cryptocurrency industry. Polygon CEO Marc Boiron recently asserted that layer 3 blockchains exist solely to divert value from Ethereum to the underlying layer 2 solutions.

In contrast, layer 3 advocates, such as Arbitrum Foundation researcher Patrick McCorry, argue that they are a logical extension of layer 2 networks, offering significant cost savings for transactions.

The ongoing outage of Degen Chain highlights the potential vulnerabilities and operational challenges associated with layer 3 blockchains. While the network remains offline, it serves as a stark reminder of the importance of robust infrastructure and meticulous testing in the rapidly evolving world of blockchain technology.