Monero, a privacy-focused cryptocurrency, has recently undergone a significant blockchain reorganization, raising many questions about its security and reliability.
What Happened to Monero's Blockchain
On September 14, Monero's network experienced an 18-block reorganization, resulting in the cancellation of 118 transactions. Independent analyst Xenu called it 'the largest reorg in Monero’s history,' which has again put the network's security into question. A blockchain reorganization occurs when miners cannot agree on which version of the ledger is correct.
Qubic's Role in the Situation
This situation has drawn attention to Qubic, a competing blockchain that controls a significant portion of Monero's hash power. Qubic accounts for 2.11 GH/s of Monero's 6.00 GH/s total hash rate, making it the largest single contributor. Earlier this year, critics accused Qubic of attempting a 51% attack on Monero. Qubic founder Sergey Ivancheglo expressed that Monero 'will stay because Qubic wanted it to stay,' which analysts interpret as a demonstration of influence.
Expert Warnings on Security
Security experts express concern that the threat remains. SlowMist's co-founder warned that if no one in the Monero community takes the issue of block reorganization seriously, then 'this Sword of Damocles will always hang over Monero’s head.' Exchanges have also responded cautiously, with Kraken suspending XMR deposits and raising required confirmations to 720, reflecting concerns about network trust.
The largest blockchain reorganization of Monero has already led to price declines of more than 5% in 24 hours. Analysts warn that repeated reorganizations could erode confidence in Monero if mining concentration is not addressed and stronger security measures are implemented.
