A software bug in THORChain, a decentralized liquidity protocol created in the Cosmos ecosystem, caused an outage Thursday, bringing all its services to a halt.

The development team at THORChain confirmed the network halt was due to a software bug and it had nothing to do with the solvency of the protocol.

"Devs are aware of a chain halt and have identified the likely cause due to a unique transaction type (nothing to do with solvency). An update will be posted as soon as there is more confirmed information," THORChain confirmed.

In an update, THORChain said the next steps include finding the source of non-determinism, releasing an update to the community and restarting the protocol.

"Consensus halts in a distributed state machine are from sources of non-determinism between individual nodes and prevent the ledger from becoming corrupted," added the THORChain development team.

The team believes the halt is due to some conflict between nodes, which is actually a security measure to prevent the official ledger from being corrupted. This issue is yet to be fixed as of 8.32 p.m. ET Thursday.

Exploits on THORChain are not unheard of. The Cosmos-based blockchain suffered two hacks in two consecutive weeks last year. On July 16, 2021, users lost close to 4,000 Ether (ETH) following an exploit. The protocol announced at the time that people who lost funds will get them back.

On July 23 the same year, the protocol was once again robbed of over $8 million but it was done by a white hat hacker, i.e., they agreed to return the funds for a 10% bounty.

The blockchain has also made a strong comeback as its native token RUNE performed quite well in the second and third quarters of 2022.

Will A Thinned-Out Market Be The Basis
Will A Thinned-Out Market Be The Basis For Crypto's Resurgence Pixabay