Monero’s privacy token rose more than 7% despite the blockchain suffering from 18 blocks of Reorg, causing around 117 deals and community concerns about the future of the Monero Ecosystem.
The security breach was committed by the team behind Qubic. This is a Layer 1 AI-centric blockchain and mining pool that accumulated 51% hashrates in Monero and committed six blocks of Reorg last month.
Reorg started at 5:12am on Sunday at block 3499659 and ended at block 3499676 about 43 minutes later, according to sources who ran the Monero node and shared the command line console on X.
Monero’s latest security breaches have also been confirmed by GitHub’s cryptocurrency protocol researcher Rucknium.
Surprisingly, the Monero (XMR) token traded relatively flat while Reorg was happening, with a 7.4% rally from $287.54 to $308.55 in just over eight hours. XMR managed to rise despite the broader market falling by around 1% on Sunday.
The Crypto Podcaster Xenu was one of the first to report Monero’s Reorg, suggesting that Qubic may be trying to implement a “stop bleeding” mechanism at XMR’s price.
Reorg, who claims that Xenu is the biggest in the history of networks, has prompted discussions on how to advance privacy chains.
Repeated attacks highlight how the Proof of Work blockchain is tampered with when it is not decentralized enough, preventing its use as a financial network.
“Personally, I don’t think the Monero network is reliable at this point. We will stop accepting XMR payments until this situation is resolved,” one Crypto Pundit, Vini Barbosa, said on X on Sunday.
Monero may need to be centralized to curb the effects of Qubic
Rucknium said Monero node operators will begin to temporarily adopt the adoption of Domain Name System (DNS) checkpoints.
But while it’s expensive to centralize, some people argue that it’s already hurt by a hashrate share of over 51%.
This is what looks like a 19 reorganization block on my monerod $ xmr pic.twitter.com/30awmyqgcb
– ʊɬɱʘʊɬɱʘa¡
“If no one in the Monero community takes the issue of block reorganization seriously, this Damocles sword is always on Monero’s head,” wrote Yu Xian, founder of the Blockchain Security Competition, posted on X.
Monero is considering solutions to prevent 51% attacks
Previously, the Monero community had investigated potential overhauls of work proof consensus mechanisms to make the network resistant to 51% of attacks.
These proposals include localizing mining hardware, switching to merge mining algorithms, and adopting Dash’s chainlock solution to allow XMR to be mined with Bitcoin (BTC) and other cryptocurrencies.
To date, solutions have not been implemented effectively, and Qubic still has a major impact on privacy-focused networks.
Related: Kraken pauses Monero Deposits following 51% attack
Monero had a 10 block locking mechanism that protected transactions up to 10 blocks, but the recent 18 block Reorg had surpassed its safeguard, Rucknium pointed out.
Despite the network violations, XMR has been relatively strong since it was first created with the acquisition of Qubic around July 28th, falling only 5.85%.
Magazine: Three people who unexpectedly became crypto billionaires…and who didn’t
