Monero pumps 7% regardless of an 18-block reorg prompting considerations

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Monero’s privateness token rose greater than 7% regardless of its blockchain struggling an 18-block reorg that reversed round 117 transactions and triggered group considerations over the Monero ecosystem’s future.

The safety breach was dedicated by the workforce behind Qubic, a layer 1 AI-focused blockchain and mining pool that amassed 51% hashrate on Monero and dedicated a six-block reorg final month.

The reorg began at block 3499659 on Sunday at 5:12 am UTC and completed at block 3499676 roughly 43 minutes later, in accordance to sources who run Monero nodes and shared their command-line consoles on X. 

Monero’s newest safety breach was additionally confirmed by cryptocurrency protocol researcher Rucknium on GitHub.

Surprisingly, the Monero (XMR) token traded comparatively flat whereas the reorg was taking place, and a bit over eight hours later, it went on a 7.4% rally from $287.54 to $308.55, CoinGecko information exhibits. XMR managed to rise regardless of the broader market dropping round 1% on Sunday.

Crypto podcaster xenu — one of many first to report Monero’s reorg — instructed Qubic could have been attempting to implement mechanisms to “cease the bleeding” of XMR’s worth.

XMR’s change in worth over the past 24 hours. Source: CoinGecko

The reorg — claimed by xenu as the biggest within the community’s historical past — has prompted dialogue over find out how to deal with the privacy-chain shifting ahead.

The repeated assaults spotlight how proof-of-work blockchains will be tampered with once they’re not sufficiently decentralized, hindering their use as a financial community.

“Personally, I do not contemplate the Monero community dependable at this level. I’ll cease accepting XMR for funds till this example is resolved,” one crypto pundit, Vini Barbosa, stated on Sunday on X.

Monero could must centralize to curb Qubic’s affect

Rucknium stated it’s “extremely seemingly” that Monero node operators will begin quickly adopting Domain Name System (DNS) checkpoints — the place nodes fetch trusted block information from group DNS servers — as an answer to stopping the repeated reorgs.

However, that comes at a value to centralization, which some would argue has already been tarnished by Qubic’s greater than 51% hash charge share.

“If nobody within the Monero group takes the problem of block reorganization severely, then this Sword of Damocles will all the time cling over Monero’s head,” Yu Xian, founding father of blockchain safety compay, SlowMist, posted to X.

Monero has thought-about options to stop 51% assaults 

Previously, the Monero group explored a possible overhaul of its proof-of-work consensus mechanism to make the community proof against 51% assaults.

Among these proposals included localizing mining {hardware}, switching to a merge mining algorithm, permitting XMR to be mined with Bitcoin (BTC) and different cryptocurrencies, and adopting Dash’s ChainLocks resolution.

To date, no resolution has been successfully carried out, and Qubic nonetheless has vital affect over the privacy-focused community.

Related: Kraken pauses Monero deposits following 51% assault

Monero had a 10-block lock mechanism to guard transactions from reorgs as much as 10 blocks, however the latest 18-block reorg exceeded that safeguard, Rucknium famous.

Despite the community breaches, XMR has held comparatively sturdy since studies had been first manufactured from Qubic’s takeover round July 28 — falling solely 5.85%.

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