On Sunday, the Cosmos-based Canto blockchain experienced an outage following its ‘Callisto’ upgrade on Saturday. The chain experienced an “issue with consensus,” causing it to halt operations. Canto chain took to X (formerly Twitter) to announce the issue, and it will carry out another follow-up upgrade to address the outage issue on Monday at 12:00 UTC.

This outage is a reminder of the importance of parametric insurance for blockchain networks. Blockchain outages, a temporary unavailability of the network, can cause transactions to be delayed or stopped completely. In some cases, outages can significantly impact the users and businesses that rely on the network.

Canto assured its users that all funds are safe and that once the chain resumes, users will be able to access all activities as usual. However, the CANTO cryptocurrency that powers Canto’s Decentralized Finance (DeFi) focused layer-1 blockchain protocol has slumped in the past 24 hours, experiencing a 1.37% fall in 1-day and is now trading at $0.039 at press time.

This is a stark contrast to CANTO’s exploding year in 2023, where CANTO/USD was up a staggering around 530% since the turn of 2023 and hit record highs to $0.60. Currently, Canto chain holds TVL of $13.5 million, making it the 78th largest blockchain by total value locked (TVL), according to DefiLlama data.

The Canto blockchain’s decision to remain as a Cosmos-based layer-1 network instead of migrating into a ZK-powered Layer-2 chain on Ethereum has caused concern among insurance executives. The decision to remain on a layer-1 network increases the risk of outages and other technical issues.

This is where parametric insurance comes in. With Riskwolf, insurance builders can turn real-time data into insurance. Using unique real-time data and dynamic risk modelling, Riskwolf enables insurers to build and operate parametric insurance at scale. Simple. Reliable. Fast.

In conclusion, the recent Canto blockchain outage is a reminder of the importance of parametric insurance for blockchain networks. Insurance executives should consider implementing parametric insurance to protect their businesses and users from the risks associated with blockchain outages. Get in touch with Riskwolf to develop parametric insurance for your blockchain network today.

Source: Layer-1 Blockchain Canto Experiences Outage Following New Upgrade