Provider is down error investigation

[churik]

Bug Report

Problem

Seems there is no clear understanding of when and why we are getting "Provider is down" errors (currently we have it hidden because of #21054), and proper investigation is needed.

Expected behavior

"Provider is down" only when we get errors from providers (currently it is not the case; we investigated it with @Samyoul and even after getting 200 from pokt that app is falling back to infura)

Reproduction

1. Open wallet and use it for 10-15 mins

Accepted criteria

(followup onhttps://github.com//pull/21055)

Improved Error Handling:

Differentiate between types of errors (e.g., rate limits, connectivity issues, authorization failures).
Implement more nuanced responses, such as using local cache when rate limits are hit, informing the user when they are offline, or providing specific feedback for unhandled errors.

Investigation and Refinement:

Allocate time to investigate the root causes of the "flip-flapping" connection state and refine the logic to reduce false positives for the chain down signal.

[churik]

cc @shivekkhurana

[J-Son89]

I would consider this higher than low-priority if it's work available at the beginning of a development cycle. It makes the app experience horrendous 😓

[ilmotta]

• Linking with issue ⛓️ ⬇️ Investigate Chain Down Issues #21071. They seem to be slightly different, but can probably be closed together.

[friofry]

Agreed, I'm currently delving into that part of the code. So I've assigned this ticket to myself