- Qubic claims majority control of Monero hashrate, sparking reorganization concerns.
- Monero core team urges increased confirmation thresholds.
- Risk of double-spend and censorship highlighted by experts.
Qubic has announced that it now controls over 51% of Monero’s hashrate, raising concerns among developers and community members about potential blockchain reorganizations and network security threats.
Coin exchanges have increased confirmation requirements, indicating potential liquidity issues and risks of double-spending that could impact XMR trading and network stability in the near term.
Monero faces potential chain reorganization issues after Qubic declared it controls over 51% of the network’s hashrate. The Monero community is responding to these claims and the subsequent stability concerns.
Qubic’s claim of sustained hashrate control has prompted warnings from Monero developers. They advise raising confirmation thresholds and pausing transactions amid fears of potential chain reorganizations.
Immediate Effects
Immediate effects include major exchanges like Binance pausing XMR deposits due to reorg risks. Observations of unusually frequent deep reorganizations have alarmed Monero miners and developers alike.
Such network instability is causing operational adjustments, with increased confirmations recommended. This reflects adjustments previously seen during 51% attacks on other cryptocurrencies, like Ethereum Classic.
Historical precedents show that prolonged hashrate dominance often leads to further network adjustments. Exchanges and developers monitor the situation, drawing insights from past 51% incidents in the sector.
Potential financial implications include liquidity fragmentation and spread widening. Regulatory and crypto communities continue observing developments, adapting security protocols to mitigate risks.
“We have achieved sustained >51% hashrate on Monero as part of our planned test. This is to demonstrate and research network security dynamics.” — Sergey Ivancheglo, Founder, Qubic
