Sia Coin wallet problems on Poloniex



Site Admin
Apr 2017
Sia Coin (SC) has continued to have problems with withdrawals from the popular exchange, Poloniex. And with the recent increase in price and attention, these problems have only been getting worse.

And to make matters worse, there aren't any viable, easy desktop wallet solutions for Sia Coin. Sia Coin provides a wallet, but it's extremely heavy because you're required to download the entire blockchain, and myself and many others have been unable to get it working on Mac computers. I would like to see an easier, lightweight wallet solution for Sia Coin in the near future.

The team at Sia Coin has been actively working with Poloniex, and made the following announcement yesterday:
I wanted to give you guys an update about Poloniex. We were hoping to have the issues resolved a lot quicker, but given that withdrawals are still somewhat flaky, we want to reassure everyone that we're focused on fixing the issue quickly, and that to the best of our knowledge coins are not missing.

What we know about the issue
Poloniex is having issues where they are submitting transactions to the network, but the transactions are not appearing in the blockchain. I think that this problem covers 90%+ of all withdrawal issues that people are having with Poloniex.

The Sia wallet has a transaction pool. Transactions are put in the pool and sent to miners, and then miners use the pool to pick transactions to put into blocks. When we created the transaction pool, there was some issue that prevented us from making a large transaction pool - it started having significant performance issues once the pool got to something like 2mb in size (the size of one block). Rather than fix the issues, we capped the size of the pool to 2mb and decided we would fix it later, once we had more users. This decision was made more than 2 years ago, and we did not expect to hit the block size limit as fast as we did. Bitcoin for example did not start to have problems with full blocks until a few years ago.

The recent huge spike in price brought a lot of attention to Sia. It also meant that there was enough activity to occasionally fill blocks. This of course was more than the transaction pool could handle, and so transactions started getting thrown away instead of making it onto the blockchain.

I believe this explains everything we've been seeing with Poloniex. The transaction pool on the network is too small, and that much is our fault. We should have come forward to fix the issue a lot earlier than we did. That said, I don't think anyone was expecting 10x growth within the space of 1 month, so we really did not have much warning.

It gets worse because now Poloniex has a huge backlog. So when they re-activate, they immediately fill the pool again. =/

What we have done to fix it
The very first thing we did to fix the issue was provide a way for users and exchanges to rebroadcast their transactions. If transactions aren't making it onto the blockchain, it's usually because the transaction pools are full. After a new block appears, the transaction pools will be empty again, and the transactions can be re-broadcast (this doesn't happen automatically). We expect this to fix most of the problems.

To the best of my knowledge, Poloniex isn't currently utilizing this fix, though I'm guessing it'll solve their problems.

We also added more logging to the wallet (merged today) to log when transactions are created, when they are put on the blockchain, and when they are removed from the blockchain.

What we are continuing to do to fix it
The above solutions are short term solutions that allow Poloniex and other exchanges to improve their withdraw rate even when the transaction pools are not able to handle lots of volume.

We're also working on upgrading the transaction pool to handle more volume, and to more correctly deal with transactions that get pulled off of the blockchain during a reorg. These fixes cannot be deployed right away, because the effectiveness of the fixes really depends on large portions of the network upgrading. We will be deploying these fixes in our next release. If we are correct about what's causing the problems, Poloniex and other exchanges should be able to fix their withdrawals without this release getting deployed. They should be able to get transactions to users even in the event of a full transaction pool in the long term. We can add another 10x of scalability here, but beyond that we've hit the fundamental limits of high decentralization blockchains.

Will I get my coins back?
To the best of my knowledge, none of the problems that we are seeing indicate that coins have been lost, stolen, or otherwise compromised. It may take another few days or weeks (hopefully days), but I believe that everyone will get their coins soon enough. We're sorry for the delay.

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