Layer-2 scaling solution based on Ethereum In the overnight hours of January 9, 2022, Arbitrum experienced a temporary network outage. It released a report after a 7-hour outage, explaining that the network outage was caused by a hardware failure in its main sequencer node. The problem was fixed, and the Sequencer and all public RPC nodes were restored to full functionality. In addition, the post stated:
“A hardware failure in our primary Sequencer node was the root of the problem. While we usually have redundancies in place to allow a backup Sequencer to take control effortlessly, these did not take effect this morning due to a software upgrade. As a result, the Sequencer has ceased to accept new transactions. We’d want to emphasize that Arbitrum is a Layer 2 Ethereum network, and the network is built to withstand even permanent Sequencer failures by reverting to Ethereum for transaction processing.”
Furthermore, the project’s team is trying to install extra redundancies to improve network stability, according to the blog post. To reach the ‘ultimate goal of full decentralization,’ the company intends to decrease Sequencer downtime in the future.
Similar problems have already plagued the scaling solution, however today’s disaster appears to be more serious. The Arbitrum chain experienced another network disruption in September, but it was fixed within an hour.
Arbitrum and other optimistic rollups are prone to problems
Offchain laboratories created Arbitrum One to take advantage of Optimistic Rollups, which process transactions at substantially faster rates and at cheaper prices than the base chain. Optimistic Rollups do not handle calculation by default, however they are prone to issues such as sending funds to mainnet taking up to a week due to a challenging period for withdrawals.
In contrast, when compared to other similar layer-2 initiatives, Arbitrum’s total value locked [TVL] has rapidly increased.
According to l2beat, an analytics website, the layer 2 solution is worth around $2.5 billion in TVL. Since its mainnet launch in August 2021, it has attracted a number of Ethereum’s leading DeFi protocols, including Balancer and Uniswap, Aave, MakerDAO, and Chainlink, with more on the way.
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