Cardano Chain Split: What Happened?
On November 21, the Cardano blockchain experienced its first major chain split in eight years. This incident was triggered by a malformed transaction exploiting a three-year-old bug in the node software. The chain split temporarily divided the $14 billion blockchain into two conflicting versions. While newer node versions accepted this transaction, older versions rejected it. This created incompatible ledger states across the network.
The exploit stemmed from a deserialization bug that originated in 2022. Evidence also suggested that the exploit was tested on Cardano’s testnet a day prior to being executed on the mainnet. Despite the disruption, block production continued, with some identical transactions appearing on both chains.
Emergency Response and Recovery
The Cardano community swiftly reacted to the situation. Teams from Input Output Global (IOG), Cardano Foundation, Intersect, and EMURGO collaborated to deploy emergency patches within three hours of detecting the issue. The network naturally converged and stabilized by November 22 without requiring a centralized rollback.
Independent stake pool operators, exchanges, and engineers played a significant role in restoring network stability. During this time, major exchanges like Coinbase, Kraken, and Upbit paused ADA transactions, with disruptions lasting up to 14 hours in some cases. Block explorers and DeFi protocols also experienced challenges, such as delayed transaction confirmation times and inconsistent states.
Controversy and Legal Implications
A developer publicly identifying as Homer J claimed responsibility for the incident. They admitted to bypassing proper testing protocols, relying instead on AI-generated instructions. However, Cardano founder Charles Hoskinson labeled the event a premeditated attack and involved the FBI in the investigation.
This escalation caused concern among some Cardano developers. An IOG employee resigned after expressing worries about potential legal consequences for development mistakes in the future.
Impact on ADA Prices
The incident caused ADA, the native token of Cardano, to drop by as much as 16%. However, it showed resilience, recovering slightly afterward. At the time of writing, ADA trades at approximately $0.41.
Looking Ahead
The Intersect organization has committed to conducting a thorough review to prevent such incidents in the future. Transparency and proactive measures are key for maintaining trust within the Cardano ecosystem and attracting more users and developers.
Optimizing Your Investment in Cardano
If you’re an investor or a crypto enthusiast, consider using a hardware wallet like the Ledger Nano X to keep your Cardano (ADA) assets secure. This wallet offers top-notch security features and offline storage to protect your cryptocurrencies.
