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Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Monero debates security overhaul after Qubic mining threat
Monero debates security overhaul after Qubic mining threat
Image via Dall-e.

Bitcoin

Monero debates security overhaul after Qubic mining threat

The debate began after the Qubic mining pool claimed it gained majority control of Monero’s hash rate in August

The community for the Monero privacy coin is weighing a major redesign of its proof-of-work (PoW) consensus model to harden the network against 51 per cent attacks.

The debate began after the Qubic mining pool claimed it gained majority control of Monero’s hash rate in August, raising fears of wider exploitation.

Community members have floated several possible solutions. Some propose localizing mining hardware to reduce concentration. Others want to adopt a merge-mining model, allowing Monero to be mined in parallel with Bitcoin or other established cryptocurrencies. Additionally, the community is considering Dash’s ChainLocks solution, which adds a protective layer on top of PoW.

ChainLocks uses randomly selected masternodes to form a quorum. They confirm the first valid block broadcast, then lock the blockchain ledger. Only blocks linked to this ChainLocked version can extend the chain.

Dash DAO core member Joel Valenzuela said this design prevents reorganizations even if malicious miners present longer chains. Furthermore, he argued that it removes incentives for selfish mining and mitigates sudden shifts in hashing power.

Valenzuela also cautioned that Monero’s ASIC-resistant model makes it more exposed to economic-style attacks. He warned that any chain relying on general-purpose hardware should take the Qubic incident seriously.

The Qubic mining pool currently controls 2.18 gigahashes per second (GH/s), the largest share of Monero’s network. Supportxmr follows as the second-largest pool with 1.18 GH/s. Qubic’s dominance triggered heated debate inside the community. Some argue Qubic reached majority control and reorganized blocks. However, others insist the pool only managed a limited disruption rather than a full takeover.

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Kraken warned it may halt deposits if risks remain

Despite conflicting claims, external observers reacted with caution. Major exchange Kraken suspended Monero deposits temporarily. In a later update, Kraken re-enabled deposits but required 720 confirmations before crediting accounts. The exchange warned it may halt deposits again if risks remain. Additionally, Kraken noted that consolidation of hashing power under a single pool poses significant danger to users.

Meanwhile, the Qubic community announced a new target for its mining strategy. In an internal vote, members selected Dogecoin as the next coin to attack, gathering over 300 votes. Sergey Ivancheglo, founder of the Qubic network, later clarified that Dogecoin mining would require months of development. For now, Qubic remains focused on Monero.

The episode has highlighted growing unease in the PoW landscape. Furthermore, it underscored the importance of economic defenses as much as technical ones. Monero’s community is now debating whether to adopt stronger safeguards like ChainLocks or pursue other innovations.

The outcome of this debate could shape Monero’s future. It may also serve as a warning for other ASIC-resistant networks vulnerable to concentrated mining threats.

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