What happened?
On September 14, Monero experienced its largest-ever blockchain reorganization, leading to the replacement of 19 blocks by a competing chain. This incident, which lasted for roughly 43 minutes, resulted in the invalidation of 118 previously confirmed transactions, causing concern among users and exchanges. The event followed reports that Qubic had gained control of more than 51% of Monero’s network hashrate, suggesting the possibility of chain rewrites or double-spending at an estimated cost of $100,000 per day.
Who does this affect?
This issue primarily affects Monero users and exchanges due to the invalidation of confirmed transactions. Analysts have expressed concern over the event, considering it unprecedented in Monero’s history. It also brought attention to Qubic’s elevated influence over the network, as their control of the network’s hashrate enabled them to perform such an extensive reorganization. Mining pools like Qubic now wield substantial power, emphasizing vulnerabilities within the protocol.
Why does this matter?
The incident raises serious doubts about Monero’s network security and the potential for substantial market impact. Despite the disruption, Monero’s value surprisingly increased 7% in the past day before falling back to its previous level. However, the occurrence highlights the risks of concentrated mining power and instability within the network, sparking debate about the future of Monero’s blockchain and prompting discussions about potential safeguards against deep reorgs and 51% attacks.