Monero community reacts to Qubic's controversial hashrate control bid.
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Monero Faces Community Backlash Over Qubic’s Hashrate Control Attempt
The privacy-focused cryptocurrency Monero is at the center of a heated controversy as Qubic, a mining pool led by Iota co-founder Sergey Ivancheglo, attempts to seize control of its network’s hashrate. This move has sparked significant concern within the Monero community over the potential centralization of the network.
Qubic’s Controversial Strategy
Related: US Predicted to Control More Than 40% of Bitcoin Hashrate by 2024
Qubic, once a leading Monero mining pool, has seen its position drop to seventh place according to MiningPoolStats. The decline follows community awareness of Qubic’s strategy to perform a network takeover, leading to a sharp decrease in its hashrate.
In a blog post dated June 30, Qubic disclosed its initiative to incentivize Monero CPU mining, using the mined XMR to bolster its ecosystem through buybacks and token burns. Ivancheglo confirmed that Qubic was indeed orchestrating a takeover, aiming to control most of the network’s hashrate and reject blocks from other pools.
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Community Concerns and Reactions
The Monero community has reacted strongly against Qubic’s actions, highlighting the risks of hashrate centralization. The potential for Qubic to orphan blocks, reject transactions, and enforce protocol changes raises significant concerns about network security and decentralization.
In a recent post, Ivancheglo indicated plans to stop reporting Qubic’s hashrate, complicating efforts to assess its influence over the Monero network. He argued that understanding such attacks is crucial for the cryptocurrency industry to prepare for future threats.
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Implications for Monero’s Future
Experts, including Dan Dadybayo from Unstoppable Wallet, have expressed concerns about the implications of Qubic’s actions. With control of 51% of the hashrate, Qubic could manipulate the network in ways that threaten its integrity and decentralization. Dadybayo emphasized that while Qubic claims no intention to harm Monero, the centralization of power inherently poses a risk.
This incident underscores the ongoing challenges faced by decentralized networks in maintaining security and resilience against economically motivated attacks. As the Monero community continues to grapple with these developments, the broader implications for privacy-focused cryptocurrencies remain a critical point of discussion.
Emily brings a decade of expertise in blockchain technology and decentralized finance (DeFi). She specializes in market trends and regulatory developments, providing in-depth analyses that resonate with seasoned investors and beginners alike. With a background in financial journalism, she is dedicated to bringing clarity to the fast-paced world of crypto.
