Solana Transactions Are Stopped at Coinbase Prime, Network Fixes Block Operations

The brokerage arm of one of the largest U.S. crypto exchanges, Coinbase Prime, is in trouble with SOL transfer transactions due to a bug that took the Solana network out of service last week. This was reported from a tweet by Hasib Qureshi, managing partner of Dragonfly Capital.

Looks like custodians are unable to move SOL in cold storage due to the durable nonce bug that took down Solana.

(TL;DR: Solana doesn't use nonces except in a special type of transaction called "durable transactions," for offline use. This was disabled.)https://t.co/6HSiWHnGAj pic.twitter.com/pA7xzLlgSE

— Haseeb Qureshi (@hosseeb) June 8, 2022

In its statement regarding the situation, Coinbase Prime explained that due to an update to the Solana network, custodial on-chain transactions, including the full range of transactions from wallet creation to withdrawals and stacking, are disabled for a certain period of time. Customers do not need to worry about their assets in this case, Coinbase Prime underscored. At the same time, users of the service can deposit funds to existing wallets, and active stakeholders will still be able to receive rewards.

What's up with Solana?

In early June, Solana experienced a serious failure in processing durable nonce transactions, which led to a consensus disruption and shutdown for more than four hours. As a result, developers decided to deactivate these transaction kinds, while Solana's validators were told to relaunch the blockchain.

The feature of performing these types of transactions is highly in demand among users of crypto exchanges. Their main goal is to simplify the process for those users who use more complicated signature settings, because of which they are not able to immediately prepare transactions for blockchain registration.

The activation of specific operations should be expected after the blockchain mechanic's adjustments, Solana's developers explained. Therefore, the feature will be enabled again only in the next major software update.