Dogecoin News Today: Qubic's AI-Powered Mining Ambition Tests Crypto's Decentralized Future

Kraken has temporarily suspended Monero (XMR) deposits in response to a reported 51% attack on the privacy-focused blockchain, which poses a potential threat to the network's integrity. A 51% attack occurs when a single mining pool controls more than half of the network's hashing power, enabling it to manipulate transaction confirmations and potentially double-spend coins. Kraken has stated that deposits will resume once the situation is deemed safe, while withdrawals and trading remain active [1]. The exchange cited concerns over the security of the Monero network, noting the risk associated with a single entity gaining such a dominant position in the mining process [1].

The attack is attributed to Qubic, a layer-1 AI-focused blockchain and mining pool, which claimed control of more than 50% of Monero's hashrate. Qubic reportedly reorganized six blocks on the network and declared itself the number one Monero mining pool, according to data from MiningPoolStats. This development has raised concerns within the broader crypto community about the vulnerability of smaller blockchains to such attacks [1]. The Qubic team, led by Sergey Ivancheglo—also known as "Come-from-Beyond"—has described the takeover as a pivotal moment in the evolution of blockchain technology, particularly highlighting the takeover of a $6 billion privacy protocol by a $300 million AI protocol [1].

Following its success with Monero, Qubic has set its sights on Dogecoin (DOGE) as its next potential target. The decision was made after a vote within the Qubic community, where Dogecoin received the most votes against other proof-of-work chains like Zcash and Kaspa. Qubic aims to explore whether its consensus mechanism can be adapted for an ASIC-based coin, such as Dogecoin, which differs from Monero’s ASIC-resistant model. The Qubic team emphasized that while there are no immediate plans for a 51% attack on Dogecoin, the community is testing the feasibility of mining such a coin using their hybrid mining and AI model [2].

Qubic's token has seen a recent rise, with its market capitalization climbing nearly 28% to $363 million in the week following its Monero attack, according to CoinGecko. However, the token remains far below its all-time high of $577 million, recorded earlier this year. Despite this, Qubic’s growing influence in the mining sector has drawn attention to the potential risks it poses to major proof-of-work blockchains. The Qubic community reportedly plans to continue its mining efforts on Monero until further developments regarding Dogecoin are made, with no official confirmation of an attack at this stage [2].

The broader implications of Qubic’s activities have sparked debate within the crypto space. Some experts, including Alex Petrov of Hyperfusion, suggest that the Monero attack may have been more of a strategic publicity campaign than a genuine threat to the network. The RIAT research institute has also issued a report refuting Qubic’s claims of a successful 51% attack, suggesting that the network's core functionality remains intact and that privacy, speed, and usability have not been compromised [4]. The controversy underscores the need for stronger consensus mechanisms and governance models to prevent centralized control in decentralized systems [4].

Source:

[1] Kraken pauses Monero deposits following 51% attack (https://cointelegraph.com/news/kraken-pause-monero-deposits-after-51-attack)

[2] After Attacking Monero, Qubic Sets Its Sights on Dogecoin ... (https://finance.yahoo.com/news/attacking-monero-qubic-sets-sights-193146462.html)

[3] Monero's 51% Attacker, Qubic, to Target DOGE Next (https://cointelegraph.com/news/qubic-monero-51percent-attacker-target-doge-next)

[4] Qubic Developers Target Dogecoin for 51% Attack (https://forklog.com/en/qubic-developers-target-dogecoin-for-51-attack/)