Monero (XMR) Price Crashes 17% on Qubic 51% Attack
The post Monero (XMR) Price Crashes 17% on Qubic 51% Attack appeared on BitcoinEthereumNews.com.
The Qubic mining pool has launched a 51% attack on the Monero network, gaining control over most of its hashrate. This attack allows Qubic to rewrite blockchain history, execute double-spend attacks, and censor transactions. However, sustaining the attack is estimated to cost $75 million per day. In a startling development, the Qubic mining pool has successfully executed a 51% attack on the privacy-focused blockchain Monero (XMR). With this, it has gained control of the majority of Monero’s network hashrate. The Mechanics of the 51% Attack For context, a 51% attack occurs when a mining pool or entity gains control of more than half of a blockchain’s hashing power. This dominance allows them to reorder blocks, reverse transactions, and even double-spend coins. In Monero’s case, which relies on the RandomX proof-of-work (PoW) algorithm designed for CPU mining, Qubic’s strategy of accumulating hashrate has now given it significant leverage over the network. According to Charles Guillemet, CTO at Ledger, a major chain reorganization has already been detected, signaling the success of Qubic’s effort. With the current dominance over Monero’s block production, Qubic has the potential to censor transactions and reverse payments. The Economic Cost of the Attack While the attack could be devastating, it comes with an astronomical cost. Qubic’s dominance of the network is estimated to cost around $75 million per day to maintain, making it a high-risk and expensive endeavor. This raises questions about the ultimate economic benefits of such a move. Yu Xian, founder of on-chain security firm SlowMist, has pointed out that the financial advantages of this attack are still unclear, especially given the heavy daily cost involved. Despite the costs, Qubic’s efforts appear to be aimed at forcing the Monero community to take notice of potential vulnerabilities in its security model. Community’s Response and Market Impact on…
