In my analysis, I answer the question 169:

Q169. Make reference to this tweet: https://twitter.com/alphaDefi_/status/1504522066674003972/photo/1 Establish the failed transaction rate for Terra over a time period of your choosing. Is this analysis correct? Additionally, make a case for what is causing the failure transaction rate you assess, and provide recommendations to mitigate it.

1. Establish the failed transaction rate for Terra over a time period of your choosing.

The below line chart shows the the failed transaction rate for Terra from Oct-2020 to Mar-2022.

Mar-2022 had the highest failed transaction rate, which was 3.6% whereas 0.12% in Jan-2021 was the lowest failed transaction rate for Terra. When I make reference to this tweet https://twitter.com/alphaDefi_/status/1504522066674003972/photo/1, the above line chart is the same as the graph in this tweet. Therefore, this analysis is correct.

Kindly refer to this line chart for Transaction Failure on Terra, ETH, Harmony over time.

ETH and Harmony network are chosen to compared. Overall, Terra and ETH had the stability in the failure rate. Moreover, their rate are much lower than Harmony.

2. What is causing the failure transaction rate you assess, and provide recommendations to mitigate it.

What is Wasm?

CosmWasm stands as a secure, interoperable, multi-chain operable smart contract platform. It provides a WebAssembly (Wasm) virtual machine (VM) for the Cosmos SDK. The addition of Wasm allows software written in many different languages to run securely on blockchains, as it fundamentally serves as an intermediate language that compiles the language of choice to a portable VM. This ultimately translates to fast VM setup for sandboxing or partitioning applications for better testing, security, performance, and speed. 

As is shown in the pie chart, Generic error: Overflow: execute wasm contract failed (188891 failed transaction), Max spread assertion: execute wasm contract failed (121881 failed transactions) and Error executing Wasm: Wasmer runtime error: RuntimeError (115983 failed transactions) are main reasons of failure Terra transactions. Moreover, validator is another cause of the increase in failure transaction rate. From this analysis, for the purpose of mitigating this problem, we should enhance the completeness of wasm, add more features into it. Policies to encourage both existing validators and new validators such as high reward, token bonus should be introduced.