Qubic's Monero '51% attack' debunked, Dogecoin next target

Qubic's claims of a 51% attack on Monero's blockchain were exaggerated, with the actual hashrate controlled by their pool likely between 28-35%. The community is now targeting Dogecoin, with Qubic's founder admitting the 51% attack should be rebranded as a 34% attack. Qubic's mechanism of selling mining profits to buy back tokens could collapse if hash power drops, affecting QUBIC price.

In an unprecedented move, Qubic, an AI-focused crypto project, claimed to have successfully executed a 51% attack on Monero's blockchain, asserting control over more than half of the network's hashrate. However, recent developments suggest that the actual extent of Qubic's control was significantly overstated.

According to Monero developers, the six-block reorganization that Qubic claimed as proof of a 51% attack was not conclusive. Luke Parker, lead developer at SeraiDEX, argued that such a reorganization merely indicated an adversary with high hash power had gotten lucky. This stance was supported by the fact that Qubic's hashrate was likely between 28-35%, not the 51% claimed [1].

The controversy has led Qubic's founder, Sergey Ivancheglo, to admit that the 51% attack should be rebranded as a 34% attack. This admission underscores the complexity and uncertainty surrounding the attack's success. The high cost and potential economic benefits of such an attack remain unclear, raising questions about the sustainability of Qubic's strategy.

Qubic's mechanism of selling mining profits to buy back tokens could collapse if hash power drops, potentially affecting the price of QUBIC tokens. This financial model relies on maintaining a significant hashrate to generate revenue, making it vulnerable to fluctuations in mining power.

The Monero community has been actively pushing back against Qubic's claims, with developers and cybersecurity experts expressing skepticism. The ongoing conflict highlights the challenges faced by proof-of-work networks when mining power becomes concentrated. Kraken, a major cryptocurrency exchange, has taken action by suspending Monero deposits, underscoring the potential risks to user security [2].

Looking ahead, Monero developers must decide how to address the risk of concentrated mining power. Options include promoting more decentralized mining, improving detection of manipulation, or altering consensus mechanisms in the long term. Meanwhile, Qubic's focus is shifting to Dogecoin, with the community voting to prioritize mining that coin. However, Dogecoin mining is not without its challenges, with intense competition and high costs potentially limiting Qubic's success [3].

The situation serves as a reminder of the ongoing challenges in blockchain security. As Qubic continues to push its AI-driven strategy, Monero must strengthen its defenses to prevent future attacks. The episode also highlights the importance of decentralized mining and the need for robust security measures to protect cryptocurrency networks.

References:
[1] https://cointelegraph.com/news/monero-qubic-selfish-mining-51-percent-attack
[2] https://walletinvestor.com/magazine/kraken-suspends-monero-deposits-after-qubics-attack-raises-blockchain-alarm
[3] https://cryptoslate.com/dogecoins-2-daily-mining-profits-lure-qubic-after-monero-network-takeover/