The Normalization of Blockchain Network Outages: Do We Only Care About Token Prices?

On March 23rd, Fan Long, the co founder of Conflux, posted a message stating that Avalanche C chain seems to have stopped exporting for an hour. Puzzled by the community’s acceptance of blockchain network outages as the norm. It seems that no one reports it, or even cares about it. Do we only focus on the price of Token now?

Avalanche C Chain Suspected of Stopping Blocking

Blockchain networks have been touted as the future of trust-free transactions, with a decentralized architecture that ensures transparency, immutability, and security. However, despite the hype and promise of this technology, one issue seems to be increasingly prevalent – network outages. On March 23rd, Fan Long, the co-founder of Conflux, posted a message stating that Avalanche C chain seems to have stopped exporting for an hour. Puzzled by the community’s acceptance of blockchain network outages as the norm, he asked a poignant question – “Do we only focus on the price of Token now?”

The Rise of Network Outages in Blockchain

Network outages in blockchain networks are not a new phenomenon, nor is their frequency decreasing. On the contrary, as more and more blockchain networks emerge, the likelihood of network outages increases. The fundamental cause of such outages is the lack of scalability in most blockchain networks. The limited capacity of a blockchain network’s nodes results in lower transaction processing speeds and transaction fees, leading to network congestion and block generation delays. The result is a diminished user experience and a reduced level of trust in the blockchain technology itself.

The Normalization of Network Outages

In the early days of blockchain, network outages were considered a catastrophic event. They could lead to a loss of funds, market panic, and a significant reduction in confidence in the technology. However, as time has passed, and more blockchain networks have come online, an odd normalization of network outages has occurred. Blockchains have become so commonplace that many people have come to accept network outages as an inevitable part of the blockchain experience.
This acceptance of network outages as a normal occurrence is particularly strange when one considers the severity of the impact on the users. For instance, the Avalanche C chain outages halted transactions and prevented users from participating in DeFi activities, leading to significant losses for some users. These network outages not only affect user activities but also represent a significant challenge to the technology’s scalability.

Token Prices: Do They Obscure the Real Issues in Blockchain Networks?

The concentration on token prices is a critical concern, particularly as it obscures the fundamental problems within blockchain networks that lead to network outages. The proliferation of an obsession with token prices has made blockchain a “ponzi scheme” in the eyes of many critics. This situation has been created due to the increasing number of cryptocurrencies that focus more on increasing their token prices than on making a real-world difference.
Inflating token prices has become the primary concern of many investors in the cryptocurrency space, leading to a significant diversion of focus from the real-world practicalities that blockchain technology is capable of. The attention of stakeholders and developers in the blockchain industry has shifted from providing solutions to real-world issues towards hyping tokens’ power to amass more wealth.

The Way Forward

The normalization of network outages and the concentration on token prices represent significant challenges that the blockchain industry must address moving forward. Stakeholders in the network must develop strategies for enhancing the technology’s scalability and improving the user experience.
Moreover, there is a need for a shift towards a focus on real-world practicalities to solve current issues. Circumscribing attention on token prices is a shift that must happen. This alteration could prevent the crypto industry from becoming a modern version of the popular pyramid scheme; a fascination that leads nowhere and only enriches the already-rich individuals.

Conclusion

The normalization of network outages and the fixation on token prices are significant issues facing the blockchain industry today. These issues represent a significant challenge that the industry must handle to continue moving forward. By developing strategies that aim to enhance scalability and the user experience in blockchain networks, while refocusing attention on real-world impact, the industry can address these issues better. While the blockchain has the potential to revolutionize many fields, that promise can only be delivered if the network outage issue and token prices are appropriately addressed.

FAQs

1. Can network outages in blockchain networks be avoided entirely?

As long as there is increased adoption and activities being carried out on a blockchain network, network outages are almost inevitable. However, some blockchain networks have adopted solutions such as Sidechains/Layer 2 solutions and sharding, which can improve scalability and reduce network outages.

2. What is the impact of network outages on the value of tokens?

Network outages can have negative impacts on the value of tokens, as they can lead to loss of transactions, market panic, and distrust in the network.

3. How can the blockchain industry balance focusing on the real-world impact of blockchain technology with increasing token prices?

The focus should be more on creating real-world solutions and collaborations with industries that can benefit from blockchain technology, rather than engaging in the hype for continually increasing token prices. This shift will produce broader and more feasible projects that can prove the benefits of blockchain while keeping in check the community’s obsession about token prices.