Canto Blockchain Experiences 33-Hour Outage, No Funds Stolen

• The Cosmos-based Layer-1 (L1) blockchain Canto has experienced a 33-hour outage after the Callisto' update on Saturday.
• The asset price dumped under $0.4 following the outage, though it recovered today.
• Canto developers blamed the issue on the consensus mechanism and are issuing a fix today at 12:00 UTC.

Canto, a Cosmos-based L1 blockchain, has experienced a 33-hour outage following a major chain update.

The blockchain stopped all transactions on Sunday following the Callisto' upgrade a day earlier. Canto claimed on X that user funds aren't at risk.

Let's see what prompted the outage, when Canto will issue a fix, and how users have reacted to the situation.

Canto Down for Over a Day, Price Plummeted

After the outage on Sunday, Canto's price dropped below $0.40, fluctuating wildly and showing the investors' lack of confidence.

The L1 blockchain had a stellar beginning in 2023, reaching $0.60, increasing by ~530%. However, after reversing its decision to become an Ethereum L2 blockchain, it fell to a $13.5M total value locked (TVL).

Currently, Canto has recovered to $0.04696 (+17.54% in the last day).

It appears the temporary outage hasn't caused significant fear, uncertainty, and doubt (FUD) among investors.

What Caused the Outage, and Is It Fixed?

The Canto team mentions an issue with the consensus' as the main cause of the outage. They mentioned a fix will come today at 12:00 UTC, in a little under three hours.

Canto chain is currently experiencing an issue with consensus that has caused the chain to halt.

An upgrade to address this issue will be carried out on Monday, August 12 UTC 12:00.

All funds are safe. Once the chain resumes, users will be able to access all activities as...

- Canto (@CantoPublic) August 11, 2024

The consensus mechanism validates chain transactions and lists them on the blockchain once it verifies their authenticity.

It's unclear if the Callisto upgrade directly caused the outage, and Canto hasn't clarified if the upgrade went through or if they reversed it.

However, the project continues to have strong community support despite the current outage and its slow TVL degradation since 2023.

Blockchain Outages Are an Expected Occurrence

Network disruptions like Canto's aren't new. In May 2024, Degen Chein experienced several disruptions for over 53 hours.

Configuration errors or issues with the consensus mechanism are typically to blame, and the project team issues a fix quickly.

Canto's 33-hour outage didn't significantly dump the asset price. On the contrary, $CANTO has increased by 8.7% in the last week, showing the positive impact of community support and investor trust.

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