Stellar network was down from 4:15pm ET for nearly two hours Wednesday as Stellar Development Foundation (SDF) validators went down. It’s not immediately clear what caused the SDF validators to go down at the same time.
Every Stellar validator can choose which validators are trusted and since the majority of the validators picked SDF validators, which went down for a couple of hours, the whole network couldn’t reach consensus and no transactions were validated in that time period. When validators choose the same subset of trusted nodes, it creates a single point of failure and it becomes much easier to take down the whole network.
Nicolas Barry, CTO of Stellar.org, said that Stellar will release more information about the issue “in the next few days” including the steps that Stellar is going to take to address those issues. Barry said: “All I can say right now is that it was caused by being too decentralized too fast and the system behaved the right way by halting.” The price of Stellar lumens (XLM) is up 20% since this incident.