The Ethereum layer 3 blockchain, Degen Chain, has encountered a major setback, causing it to become unusable for over 53 hours. The network has failed to validate transactions or produce new blocks since 8:15 pm UTC on May 12. This information is based on the block explorer for Degen Chain. Degen Chain is among 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.
In a post on May 14, the official Degen Chain account acknowledged the issue and stated that they were collaborating with their development partner, Conduit, to resolve the downtime. Conduit, a rollup infrastructure platform, identified the problem as a result of a “custom config change” that affected block production for Degen Chain and the gaming network Apex.
Conduit mentioned that the nodes for Degen Chain are currently resynchronizing from the genesis block, which is the first block on the network. They assured users that they are working with both teams and Offchain Labs to restore service and minimize the impact. The estimated time for the network to resume functionality is after the resynchronization process, scheduled for 1:00 pm UTC on May 15 (6:00 am PST on May 15).
Degen Chain, originally developed for its native memecoin Degen (DEGEN), hosts various decentralized applications like DegenSwap, Mint Club, and the bridging service Relay bridge. Unfortunately, all these applications are currently inoperable due to the blockchain’s downtime. As a result, the network’s native DEGEN token has experienced a 24% decrease in value, dropping from its seven-day high of $0.02 on May 13 to $0.015, according to CoinGecko data.
The concept of layer-3 blockchains has been a topic of debate in the crypto industry. Polygon CEO Marc Boiron recently argued that layer 3s only serve to divert value from Ethereum to the layer-2 networks they are built upon. On the other hand, proponents of layer 3s, such as Arbitrum Foundation researcher Patrick McCorry, believe that they are a logical choice as layer-2 networks can make transactions more cost-effective by acting as the settlement layer.
In conclusion, the Degen Chain’s failure to validate transactions and produce new blocks has caused significant disruption to its network and applications. Efforts are underway to resolve the issue, and the network is expected to resume functionality after the resynchronization process.