The recent incident with Monero raises important questions about security and centralization in blockchain technologies.
The 51% Attack on Monero
On August 12, 2025, the Qubic mining pool gained majority control over Monero's hash rate, leading to the reorganization of several blocks and temporary instability in the network. This incident served as a warning about how even established cryptocurrencies can face serious threats if their decentralization is inadequate.
Centralization Issues in Proof of Stake
The Proof of Stake model, while increasingly popular, faces its own vulnerabilities. In Ethereum, for instance, over 60% of staked coins are in the hands of a few major players like Lido and key exchanges. This concentration poses not only technical risks but also political dangers, as networks dominated by a small group can be subject to censorship and manipulation.
Why Bitcoin and Litecoin Stand Apart
Bitcoin and Litecoin emerge as rare exceptions in this landscape, having launched without pre-mines or venture capital backing, with fixed supply caps. Their open proof-of-work mining and globally distributed security make them more resilient to capture than newer systems.
The incidents and risks associated with centralization highlight the importance of decentralization in modern cryptocurrencies. Bitcoin and Litecoin continue to demonstrate how their foundational principles ensure resilience in the rapidly changing world of crypto.
