The Ethereum layer 3 blockchain known as Degen Chain has encountered a major setback, as it has been unable to validate transactions or generate new blocks for over 53 hours. As a result, the network and its applications are currently unusable.
Degen Chain experienced the stall at 8:15 pm UTC on May 12, which was the last time a new block was produced, as reported by its block explorer. This blockchain is one of the few layer-3 blockchains that settles transactions on a layer-2 network. It utilizes the Ethereum layer-2 chain Base for settlements and relies on the AnyTrust protocol for data availability functions.
According to an announcement made by the official Degen Chain account on May 14, the team is actively working to resolve the downtime in collaboration with their development partner, Conduit, which is a rollup infrastructure platform. Conduit has identified the cause of the issue as a “custom config change” that resulted in Degen Chain and gaming network Apex ceasing block production.
As a consequence, nodes for Degen Chain are currently resynchronizing from the genesis block, which is the first block on the network. Efforts are being made by both teams, as well as Offchain Labs, to restore service and minimize the impact on users. The resynchronization process is scheduled to be completed by 1:00 pm UTC on May 15 (6:00 am PST on May 15), after which the network is expected to resume functionality.
Degen Chain was initially developed for its native memecoin called Degen (DEGEN) and also hosts various decentralized applications, including DegenSwap, Mint Club, and the bridging service Relay bridge. Unfortunately, all of these applications are currently inoperable due to the ongoing downtime of the blockchain.
The native DEGEN token of the network has experienced a decline of 24% since reaching its seven-day high of $0.02 on May 13, according to CoinGecko data.
Layer-3 blockchains have been a topic of debate within the crypto industry. Polygon CEO Marc Boiron recently expressed his belief that layer 3s primarily exist to divert value from Ethereum and onto the layer 2s on which they are built. On the other hand, proponents of layer 3s, such as Arbitrum Foundation researcher Patrick McCorry, argue that they offer significant benefits by acting as the settlement layer on layer-2 networks, resulting in cheaper transactions.
Overall, the recent downtime of Degen Chain highlights the challenges faced by layer-3 blockchains and raises questions about the future of these networks within the broader crypto ecosystem.