TLDR
- Monero community proposes updating its PoW mechanism to prevent 51% attacks.
-
ChainLocks and merge mining are among the proposed solutions for Monero’s security.
-
Qubic mining pool briefly controlled 51% of Monero’s network hash rate in August.
-
Kraken temporarily halted Monero deposits due to concerns over the network’s security.
The Monero community is exploring ways to enhance the security of its network following a recent 51% attack. The attack raised concerns about the vulnerability of the proof-of-work (PoW) consensus mechanism. In response, several community members have suggested updates to the consensus system, aiming to prevent future attacks and improve the network’s robustness.
Monero, a privacy-focused cryptocurrency, has always been a strong advocate of decentralization. The recent attack, however, highlighted weaknesses in its current setup, especially as the Qubic mining pool gained majority control over the network’s hash rate. To address these concerns, various solutions have been proposed, including localizing mining hardware, adopting merge mining, and integrating a masternode system like Dash’s ChainLocks.
ChainLocks and Merge Mining Proposed as Solutions for Monero
One of the most discussed solutions for Monero’s security overhaul is integrating a masternode system, specifically Dash’s ChainLocks. ChainLocks works by selecting randomly chosen masternodes to reach a quorum on the first valid block, effectively locking the blockchain and ensuring that only verified blocks are appended to the chain.
This system is seen as a way to prevent 51% attacks and block reorganizations, even if malicious miners have more accumulated proof-of-work than the verified ChainLocks chain. Joel Valenzuela, a Dash DAO core member, explained that the ChainLocks system has been highly effective in safeguarding networks against similar attacks. He warned that chains without application-specific integrated circuits (ASICs), like Monero, are particularly vulnerable to such attacks.
Along with ChainLocks, other proposed solutions include merge mining, where Monero could be mined alongside major cryptocurrencies like Bitcoin. This would diversify the hash rate across multiple assets, making it harder for a single entity to dominate mining operations and carry out a 51% attack.
Qubic Mining Pool Controls Majority Hash Rate
The Monero network’s recent vulnerability became apparent when the Qubic mining pool temporarily gained control over 51% of the network’s hash rate in August. Although some members of the Monero community argue that Qubic’s control was short-lived and did not result in a full network takeover, concerns about the concentration of hashing power remain.
The Qubic mining pool’s brief dominance over the network’s hashing power raised alarms, prompting exchanges like Kraken to temporarily halt Monero deposits. Kraken’s decision to require 720 confirmations before crediting Monero accounts reflects the heightened caution surrounding the network’s security.
Despite the fears, other Monero users contend that the attack was not as severe as initially believed, with only a limited block reorganization taking place. However, the event has still sparked serious discussions about the need for improved security mechanisms within the network.
Kraken and Other Exchanges Respond to Network Concerns
The aftermath of the 51% attack also had immediate consequences for Monero’s exchanges. Kraken, a major cryptocurrency exchange, temporarily suspended deposits for Monero. In a statement, the exchange explained that the move was due to “uncertainty around the security of the Monero network” following the consolidation of hashing power under a single mining entity.
Kraken emphasized that deposits would only be re-enabled once a sufficient number of confirmations had been met. The exchange added that it may suspend Monero deposits again if security concerns persist. This caution from exchanges reflects the broader market’s sensitivity to security vulnerabilities, especially after the significant incident involving Qubic.
While Kraken’s actions highlighted concerns about the attack, it also prompted Monero’s community to take proactive steps in securing its network. As discussions continue, there is a growing consensus that the proposed changes to the consensus mechanism are necessary to prevent similar attacks in the future.
