Canto Blockchain Faces Prolonged Outage After “Callisto” Upgrade; Fix Scheduled for Monday

Highlights:

• Canto blockchain has been down for 33 hours due to consensus issues.
• An upgrade to fix the outage is scheduled for August 12, 12:00 UTC.
• CANTO token recovers 16.74% after an initial 21% drop due to the outage.

Canto, a Cosmos-based Layer-1 blockchain, plans to implement an upgrade on Aug. 12 to address its ongoing 33-hour outage. The network faced a significant outage following its “Callisto” upgrade on Saturday. The mainnet shut down around 18:43 UTC, disrupting the blockchain’s ability to process new transactions. Canto attributes the outage to “an issue with the consensus” but provided no additional details. An upgrade to fix this issue is planned for 12:00 UTC on August 12. 

In an announcement on X, Canto said:

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

A consensus mechanism verifies a transaction’s authenticity and records it on the blockchain. Canto assured that all funds were safe and mentioned that once the chain resumes, users would be able to access all activities as usual.

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

CantoScan reports that the Canto blockchain has been down for over a day, with the last transaction (block 10847516) recorded at 2:29 am on August 11. Etherscan also indicates no new transactions on Canto in the past 33 hours and only two transactions in the last 46 hours. 

Launched in August 2022, Canto positions itself as a permissionless, general-purpose blockchain designed for decentralized finance (DeFi) applications and is also compatible with the Ethereum Virtual Machine (EVM). Canto initially drew investor interest with its DeFi services, including lending, staking, and liquidity provision. However, the platform has struggled to maintain this momentum, as evident by the recent decline in TVL and token value. The platform initially planned to transition to Ethereum as a Layer-2 solution but later reversed course and chose to remain a Layer-1 blockchain.

In January 2023, Canto saw a significant increase in trading volume. However, it has since dropped to the 78th rank in total value locked (TVL), according to DefiLlama. Data shows a significant drop in the platform’s TVL, from over $200 million in March to around $13.7 million currently.

CANTO Token Recovers After Initial 21% Drop

This incident significantly impacted Canto’s native token, causing an initial 21% drop in value and an 83% decline since May. However, it has shown signs of recovery over the weekend, reducing some of the initial losses. At the time of writing, CANTO was trading at $0.046, marking a 16.74% rise in the past 24 hours. CANTO had an explosive year in 2023, with its price skyrocketing about 530% to a peak of $0.60.

Blockchain Network Disruptions Are Not Uncommon

The recent incident highlights issues with large-scale changes and the stability of the blockchain. Users are urged to check Canto’s official channels for updates and to verify fund safety. Blockchain outages or temporary network unavailability can delay or halt transactions. In some cases, these outages can significantly affect users and businesses dependent on the network. 

A recent example of a blockchain outage is Degen Chain, a Layer-3 blockchain on the Base Network. In May, it experienced a major disruption, with the network failing to produce a block for over 53 hours due to configuration errors.

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