Solana Transactions on Brink as TeraSwitch Outage Hits Critical Mass

Solana's transaction finalization process nearly came to a halt due to an outage at infrastructure provider TeraSwitch, according to Marinade Finance.

The incident occurred on August 12 when a routing failure led to the simultaneous disconnection of validators responsible for 28.83% of SOL in staking, just shy of the 33.34% threshold that would have stopped finalizing transactions.

TeraSwitch's autonomous system AS20326 accounted for 118.9 million SOL, or 27.34% of the network's total stake, with 94% of this amount being disconnected during the outage.

The critical level was not reached as routing was restored after approximately 33 minutes, and validators rejoined the network, missing out on about 333 SOL in rewards.