The Tezos network at press time is experiencing minor congestion. Some transactions are now taking approximately two minutes to be processed because of a downtime involving leading cryptocurrency exchange platform, Binance.
The exchange’s baker, a term used on Tezos to identify delegates that process transactions, have reportedly gone offline for more than 14 hours, failing to bake or confirm any of the 33 blocks so far as first noted by staking service, MIDL.dev.
@cz_binance @binance your #Tezos baking operation has been broken for 14 hours. https://t.co/nWQYyCHKrJ
— MIDL.dev – Staking-as-a-service (@midl_dev) May 26, 2020
By design, when a baker on the Tezos network goes offline and fails to bake a block, priority 1 baker takes over. In other words, the block would now take 2 minutes to be baked instead of one, making the transactions one minute slower.
According to the above data from Tezos Stats, Binance is the third-largest baker in the Tezos (XTZ) network for the current cycle, coming only behind Coinbase Custody and Kraken Exchange with larger XTZ holdings. The downtime thus could continue for as long as the exchange’s baker remains offline.
Meanwhile, as Binance is yet to publish an update about the current downtime it is yet to be known how customers who are staking Tezos (XTZ) on the platform would be affected, especially in terms of payouts and rewards that would have accrued during this period. The exchange’s baker at press time held a balance of 3,368,338 XTZ worth (approximately $9.1 million) at the time of writing.
It is also worthy to note, that the few slightly slower transactions have not had any effect on the market price of Tezos.
At press time, the 10th-place ranked altcoin was trading at a fairly stable price of $2.71, with a $1.9 billion market cap according to data from Coingecko.
In another recent update about Tezos, Coinfomania reported that Coinbase customers are buying Tezos (XTZ) more than other altcoins in 2020, a fact that explains the company’s position as the leading baker on the Tezos network in the current report.
Update: This article has been updated to accurately reveal that the downtime situation will not resolve itself when the next cycle starts, but only when the Binance Baker comes back online. An earlier suggested that the downtime could be resolved when the next baking cycle starts.