Kraken has suspended Monero deposits after the Qubic mining pool carried out a 51% attack on the cryptocurrency network, raising security concerns.
51% Attack on Monero
Kraken has paused deposits for Monero (XMR) following a 51% attack executed by the Qubic mining pool, which gained control over much of the hashing power. This enabled a blockchain reorganization, negatively impacting the network's integrity. Kraken issued a statement emphasizing the suspension of deposits until network conditions stabilize.
Community Concerns
The attack triggered heightened community concern over centralization risks in Proof-of-Work models. Monero transactions on Kraken were affected, though trading and withdrawals remained operational. Attention to privacy-focused cryptocurrencies and their security has increased.
Proof-of-Work Security Issues
Past incidents, such as the March 2024 attack on Monero, did not reach this scale. Proof-of-Work blockchains face long-standing security challenges. Consensus breaches raise concerns about the viability of such systems. Future discussions are likely to involve measures to enhance decentralization and prevent single-entity control over hashing power.
The events surrounding the attack on Monero highlight vulnerabilities within Proof-of-Work blockchains, raising important questions about security and the future sustainability of such systems.
