Monero Network Faces Security Crunch as Dominant Mining Pool Raises Flags
Kraken, a prominent cryptocurrency exchange, has halted Monero (XMR) deposits due to alarming security risks. the move comes after discovering that one mining pool controls over half of the network’s hashrate—a concern that signals a potential 51% attack.
Kraken released a statement stressing the dangers posed by the centralized mining power. They emphasized the importance of network integrity and took steps to protect users’ assets against possible double-spending attacks.
Qubic, an AI-focused blockchain and mining pool, admitted to achieving this hashrate dominance. They noted it took a month of intense technical play to reach this milestone. Initially met with skepticism, the Monero community now acknowledges Qubic’s leading position in mining power.
Throughout Qubic’s rise to dominance, they faced setbacks like a denial-of-service (DDoS) attack on August 4th. This attack severely hampered Qubic’s capabilities, reducing their computational power substantially. Nevertheless, they recuperated quickly and solidified their status as the top miner.
- Qubic’s 51% hashrate allows them to reorganize the blockchain and possibly censor transactions.
- Exchanges like Kraken are taking preventive action to avoid massive monetary losses.
- A 51% attack exploits Monero’s proof-of-work system, where controlling the majority hash rate grants manipulation powers.
This development underscores concerns within the crypto community about decentralization and network stability. Other exchanges might adopt similar security protocols until the mining landscape stabilizes.
