Monero Rises Over 7% Despite Suffering 18-Block Reorg

Moneroโ€™s privacy token rose more than 7% despite its blockchain suffering an 18-block reorg that reversed around 117 transactions and triggered community concerns over the Monero ecosystemโ€™s future.

The security breach was committed by the team behind Qubic, a layer 1 AI-focused blockchain and mining pool that amassed 51% hashrate on Monero and committed a six-block reorg last month.

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

Moneroโ€™s latest security breach was also confirmed by cryptocurrency protocol researcher Rucknium on GitHub.

Surprisingly, the Monero (XMR) token traded relatively flat while the reorg was happening, and a little over eight hours later, it went on a 7.4% rally from $287.54 to $308.55, CoinGecko data shows. XMR managed to rise despite the broader market dropping around 1% on Sunday.

Crypto podcaster xenu โ€” one of the first to report Moneroโ€™s reorg โ€” suggested Qubic may have been trying to implement mechanisms to โ€œstop the bleedingโ€ of XMRโ€™s price.

XMRโ€™s change in price over the last 24 hours. Source: CoinGecko

The reorg โ€” claimed by xenu as the largest in the networkโ€™s history โ€” has prompted discussion over how to handle the privacy-chain moving forward.

The repeated attacks highlight how proof-of-work blockchains can be tampered with when theyโ€™re not sufficiently decentralized, hindering their use as a monetary network.

โ€œPersonally, I don’t consider the Monero network reliable at this point. I’ll stop accepting XMR for payments until this situation is resolved,โ€ one crypto pundit, Vini Barbosa, said on Sunday on X.

Monero may need to centralize to curb Qubicโ€™s influence

Rucknium said it is โ€œhighly likelyโ€ that Monero node operators will start temporarily adopting Domain Name System (DNS) checkpoints โ€” where nodes fetch trusted block data from community DNS servers โ€” as a solution to preventing the repeated reorgs.

However, that comes at a cost to centralization, which some would argue has already been tarnished by Qubicโ€™s more than 51% hash rate share.

โ€œIf no one in the Monero community takes the issue of block reorganization seriously, then this Sword of Damocles will always hang over Monero’s head,โ€ Yu Xian, founder of blockchain security compay, SlowMist, posted to X.

Monero has considered solutions to prevent 51% attacksย 

Previously, the Monero community explored a potential overhaul of its proof-of-work consensus mechanism to make the network resistant to 51% attacks.

Among those proposals included localizing mining hardware, switching to a merge mining algorithm, allowing XMR to be mined with Bitcoin (BTC) and other cryptocurrencies, and adopting Dashโ€™s ChainLocks solution.

To date, no solution has been effectively implemented, and Qubic still has significant influence over the privacy-focused network.

Related: Kraken pauses Monero deposits following 51% attack

Monero had a 10-block lock mechanism to protect transactions from reorgs up to 10 blocks, but the recent 18-block reorg exceeded that safeguard, Rucknium noted.

Despite the network breaches, XMR has held relatively strong since reports were first made of Qubicโ€™s takeover around July 28 โ€” falling only 5.85%.

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