Ethereum network faces finality issues which make Blockchain insecure
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Ethereum’s Blockchain network is the world’s second largest in terms of cryptocurrency market capitalization. On May 12, 2023, the Ethereum network experienced technical issues regarding blocking for over an hour, which raised concerns. It is a process used by the network to ensure crypto-economic security.
The Ethereum network is broken by finiteness problem
The process of block termination is called finality. It usually takes around 15 minutes to complete the process. It can be considered to be a guarantee that the block is now closed and cannot be changed or removed from the blockchain without burning a minimum of 33% of the total stake ETH.
This method ensures crypto-economic security. Changing the order or changing the content comes with a big cost. This keeps users confident that no rational person would try to do such a thing. Burning so much ETH to change a block can never be logical.
On May 12, 2023, the Ethereum Network lost finality for over an hour, the second occurrence in the last 24 hours. On May 11, 2023, in a 25-minute window, the blocks were started but not validated, making the block vulnerable. However, the cause of the blackout remained unclear.
Ethereum supporter and venture capitalist Adam Cochran shared a tweet regarding the incident. Says Eth beacon chain finality has been causing issues for over an hour and was hoping the issue would be resolved easily. He also shared epochs that show how much waiting time is experienced.
Finally, Ethereum Core developer Eric Conner tweeted that the issue has now been resolved.
The finality issue remains controversial in the industry because it allows transactions to be processed but not finalized. This means they are vulnerable to being reordered or ignored during completion.
Can SSF solve the finality problems?
The Ethereum Foundation is working on an updated version called single slot finality (SSF). It takes around 15 minutes to validate a block, but this system allows blocks to be proposed and finalized in the same slot. The current waiting time is too long for users and exchanges that want higher throughput.
The small window between the block’s proposal and its termination creates an opportunity for bad actors to exploit the system by censoring certain blocks or extracting MEV. Also, the current system of upgrading blocks in stages is complex and patched multiple times to address vulnerability loopholes.
These updates may be a weak link that can be exploited, or subtle bugs may occur. Upgrading to Single Slot Finality should reduce the risk.
The security of the blockchain is one of the main factors fueling its adoption. The technology is inherently robust, but still open to development. Attacks on the industry by hackers and fraudsters create doubts among users, and robust security measures can eliminate such doubts.
The Chainalysis report states that the amount stolen by crypto hackers in 2020 was $0.5 billion, which massively increased in 2021 to $3.3 billion. In 2022, the amount stolen was around $3.8 billion. These huge numbers create a sense of uncertainty.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
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