The Steemit (STEEM) network is back in operation after patching a bug, the team reported. This is the second time the network was thrown into chaos due to a bug, after a previous episode in September 2018. Steemit, the blockchain-powered social media, is based on a series of node operators and block producers similar to EOS, which allows for a greater transaction capacity.
The upgrade did not require a hard fork, but nodes had to replay some of the activity and upgrade to the patch.
“Witnesses upgraded using the patch and resumed block production on September 2nd at 06:26:42 UTC. Around 13:00:00 UTC on September 3rd Steemit and the Steemit API services were restored after replays were completed,” reported the team.
The bug was related to the Steemit system of votes, which due to errors ended up potentially rewarding trillions of STEEM for upvoting. The anomalous reward and potential payout subsequently made the blockchain freeze.
The Steemit social media and Steem Monsters were affected.
Following the network freeze over the weekend, prices tumbled once again. STEEM is down around 90% once again from last summer’s levels, and currently trades at $0.15. During the peak market in 2017, STEEM reached a record above $6, with expectations of reaching $10 or more. The price also fell from 45,000 Satoshi to under 1,600 Satoshi. When STEEM was launched, its price went as high as 0.006 BTC.
The network glitch showed that immutability was not guaranteed on a delegated proof-of-stake network, as it was too easy to make a small number of Witnesses roll back a part of the transaction record. Currently, the EOS network holds a similar option, with transactions becoming immutable only after a few blocks.
Steem Dollars (SBD), the asset that converts STEEM for direct payouts, are currently trading around $0.80. The asset, which was meant to be a stablecoin, reached a peak above $13 when its rate was left to fluctuate. Later, SBD crashed and kept near the $1 level for about a year. SBD was delisted from Poloniex, which was one of the chief markets to liquidate the coin, and now sees activity on UpBit and Bittrex, with a handful of niche exchanges.
The Steemit network has been a long-running blockchain project with a clear use case for the assets. However, the team has been accused of reaping the biggest rewards in what resembled a pyramid scheme. Last year, Steemit also cut 70% of its staff, citing worsened conditions in the crypto space and high operational costs. While Steemit accounts for the rewards on a blockchain, the social media uses the traditional Internet infrastructure.
