Solana recently hit headlines halting transactions on the network suddenly for over 3 hours. The pausing of transactions resulted in a complete stop of the networks activity. Solana’s price continued to drop over 25% from all time highs. Investors are worried wondering, is my money safe?
Solana carries a blooming eco-system of smart contracts and scalability. The cost of performance for this project became apparent recently; Centralization. Investors shouldn’t be worried about a temporary halt on the network, it can even prove to be a good thing. Investors seek safety nets for their investments. Blockchain is a newer concept introduced with 10-14% of the population being involved in cryptocurrencies reported in 2021. Centralization becomes more and more part of cryptos journey to mainstream attention. Our team sees the recent dip as a buying opportunity, we’ll explain why.
Q: Is the network shutting down a bad thing?
This is a tough question to answer but not directly, no and yes. The short term stress for holders proves negative but to keep in mind; The financial systems have always been built around trust. A sense of security for holders halting transactions proves there is a solution to worries of network hacking. Besides, this isn’t the first time a blockchain project has been stopped completely. It’s not the end of Solana’s long-term journey. Solana was given a second chance which we talk about more later on. The network proves to have great technology, but user trust comes first.
February 12th, 2020, hackers of the IOTA network find an exploit. Hackers are able to discover a vulnerability in a third party service payment service. Wallets started to lose funds as thieves gained access. To protect the users of the network, IOTA halted the coordinator network. All activity paused as users were given one month to migrate to a new secret key phrase to move their stored funds. The community was livid. How can investors trust in a project that can’t fulfill its promised purpose?
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A: What can we learn from IOTA for Solana?
Blockchain network halts can actually be a good thing.. after they happen. This network shutdown was a lucky case for the project. Scares like this bring future security for the network emphasizing the importance in security. Investors bringing large capital should be worried about said network errors. Users gain security in their money with the ability for accounts to be recovered. In this worst care scenario, users of Sol were protected. Solana was given a second chance just like IOTA. IOTA initially after the event fell roughly 50% from local highs to 0.10 cents. IOTA managed to recover and skyrocket up to $2.00 by September 2021. We see events like this as temporary stress on long-term success. Solana’s second hope brings new opportunity for improved tamper resistant infrastructure. The community demand for proven chains continues to grow. Ethereum and Bitcoin remain as top picks due to said trust at least in tech. Blockchain isn’t completely about being anonymous anymore, users like security and NFTs too! Keep your crypto secure on a hardware wallet.
QA: How can I protect myself and my keys?
Investors should only be buying crypto from trusted exchanges and websites. Do not connect personal wallets to websites you do not trust. Be careful with who or where you store your seed phrases. Most importantly, gain control of your seed phrases and crypto. Store your crypto on the network but in your reach with a secure hardware wallet. Write your seed phrases in secure places and keep them to yourself.
The Crypto News Wrap is a daily updating article grouping the biggest news in blockchain into one place. Come back daily to stay up to date and ahead of the markets. September 24th, 2021 China bans BTC for 7th time, warns local governments of Evergrande potential failure. Fantom network releases commison free NFT marketplace. Evergrande […]
The Crypto News Wrap is a daily updating article grouping the biggest news in blockchain into one place. Come back daily to stay up to date and ahead of the markets. Our wraps update throughout the day, come back often. September 23rd, 2021 Twitter deploys NFT authentication services as well as bitcoin tipping on IOS […]
The Crypto News Wrap is a daily updating article grouping the biggest news in blockchain into one place. Come back daily to stay up to date and ahead of the markets. Our wraps update throughout the day, so come back often! Our team has a daily goal of bringing you the biggest news in crypto. […]