Monero Network Under Threat: 51% Attack Raises Security Concerns
The cryptocurrency exchange Octopus has temporarily halted Monero (XMR) deposits due to a 51% attack on the blockchain, which prioritizes privacy and has raised concerns about the network’s safety. A 51% attack occurs when a mining pool controls more than 50% of the total hashing power of a blockchain network, allowing it to manipulate and reorganize transactions. Octopus Exchange stated on Friday: “As a precaution, we have halted Monero deposits after discovering that a single mining pool has gained over 50% of the network’s hashing power, posing a potential risk to the network’s integrity.”
QuBIC, a blockchain and mining pool focused on AI, claimed that on Monday it controlled the majority of the Monero hashrate and reorganized six blocks, prompting the Monero community to denounce the attack. According to CoinmarketCap, Monero is a prominent privacy-focused protocol and the 29th largest cryptocurrency by market capitalization. The ongoing 51% attack on the network has sent shockwaves through the Monero community, triggering a wave of responses.
The single mining pool, controlled by QuBIC, has gained control of the network, allowing it to manipulate transactions. A spokesperson for QuBIC wrote on Tuesday: “After a one-month technical confrontation with high commitment, QuBIC achieved 51% of the Hashrate dominance of Monero and successfully reorganized the blockchain.” The mining pool was initially dismissed after being taken over by a takeover that fell on the seventh miner of the protocol and was taken on August 4 with a presumed rejection of the service.
Denial of Service Attack and Network Restoration
A Denial of Service (DoS) attack, which floods a computer, network, or server with fake incoming traffic, clogging the system and preventing real traffic from getting through, was launched against QuBIC. The attack reduced the mining pool’s hashrate from 2.6 gigahashes per second (GH/s) to only 0.8 GH/s, according to Sergey Ivancheglo, the individual responsible for the 51% attack. However, the Qubic Pool restored its hashing power and ultimately gained control of a significant portion of the computing power in the Monero network.
This event has significant implications for the crypto industry, as it demonstrates the takeover of a $6 billion privacy-focused protocol by a $300 million AI-focused protocol. The incident highlights the importance of network security and the need for protocols to be resilient against potential attacks. For more information, visit the source link.
