The privacy-focused Monero network faced an 18-block reorganization, raising concerns within the crypto community. Nevertheless, the price of the XMR token rose by 6%.
Major Security Breach of Monero
Over the weekend, the Monero network experienced a security breach after Qubic, an AI-focused blockchain and mining pool, gained control of more than 51% of the network’s hashrate. The attack started at block 3,499,659 and lasted about 43 minutes, validated by node operators. Cryptocurrency researcher Rucknium confirmed the incident on GitHub, noting it as the largest reorganization in Monero’s history.
XMR Price Rises Amid Attack Threats
Despite recent security concerns, the price of Monero's native token XMR surged by 6%, reaching $303, with daily trading volumes increasing by 48% to $116 million. This suggests bullish sentiment among traders, even as discussions about network security escalate.
Future of Monero's Security
There are proposals for significant changes to Monero's proof-of-work consensus mechanism to defend against 51% attacks. Discussions include localizing mining hardware and implementing solutions like ChainLocks. However, Qubic continues to maintain a dominant share of Monero’s hashrate, putting the network at risk. Rucknium stated that existing 10-block lock mechanisms were bypassed during the recent 18-block reorg.
The security issues surrounding Monero highlight the importance of decentralization within proof-of-work systems. Despite positive market signals, the future of the network requires careful analysis and potential reforms.
