Transaction Failure

    Question 169: 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.

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    some explanation about Terra

    Terra is a blockchain network that supports a variety of payment methods and provides the infrastructure to develop financial applications. This platform is supported by a set of stable coins. The price of each of these stable coins remains constant using special algorithms as well as with the help of the local digital currency of this Luna network.

    One of the reasons Terra Network is so valuable is that it eliminates payment chain complexities such as credit card networks, banks and payment gateways with a single blockchain layer.

    In the below graph, we have a count of daily successes and failures. On a normal day, we average about 520K successful transactions.The total number of transactions per day is approximately around 550K it mean around 7K transactions was failed.

    In the following chart we have success and failed transactions per day. In average we have 450 TX/MIN success transactions and we have 7 TX/MIN failed transactions it mean the ratio of this two around 65 TX so that when we have 65 success transactions one of them was failed, in the average it was good.

    When we see the ratio between the two, that is, the total transactions and failed transactions we clearly understand that when the number of transactions increases the failed transactions increase too it can be said with confidence that the amount of failed transaction would also spike up!

    Let's look at what has happened in the last 90 days:

    • we have 50M transactions

    • In this transactions around 1M of them were failed it mean in average we have 13K failed transactions per day

    • Average percentage of failed transactions was around 2% but when we check it daily its percentage is increasing

    Conclusion

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    Some of the reasons are:

    These transactions fail for a variety of reasons, such as Mint an NFT, which causes different people to use the network at a specific time and the network is unable to trade and these transactions fail. The next reason was increase the price of the main token of this network is Luna, which when it grows, people buy it quickly and transfer it between wallets, and this causes the network to become crowded and transactions to fail.

    Consequences of this happening:

    • Terra's native luna token fell 10% on Monday after trouble at a decentralized finance network sent ripples across the ecosystem.
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    In the chart below, we see that the percentage of failed transactions is increasing and it's not good.