While there was a “significant surge in network traffic,” the sequencer “stalled” at 10:29 am Eastern Time (13:29 UTC), as stated in the notice. Arbitrum is now generating some blocks, as shown by the block explorer Arbiscan.
Arbitrum outage alert. Source: Arbitrum
On the other hand, it seems like they are only processing two transactions in each particular block. Some people on Twitter believed that the downtime was caused by inscriptions due to the minimal number of transactions occurring within each block.
This would explain why there were so few transactions in each block. On the other hand, the team has not yet validated this information. There are several blockchain networks that use a particular type of data format called inscriptions.
Frequently, users utilize these inscriptions to hold collectible images. Despite having their roots in Bitcoin, inscriptions have only just been implemented on Arbitrum because of the MemeOrdi protocol it utilizes.
Ricardo Gordon, the community administrator for Arbitrum, made the announcement on the official Discord server that the team is “working to resolve this as quickly as possible and will provide a post-mortem soon.”
Ricardo Gordon statement about the outage. Source: Arbitrum Discord