Monero Blockchain Undergoes Catastrophic Reorganization, Invalidating 118 Transactions

Monero Blockchain Suffers Deepest-Ever Reorganization, Invalidating 118 Transactions On Sunday, the Monero blockchain experienced its deepest-ever reorganization, rolling back 36 minutes of transaction history and invalidating 118 confirmed transactions. The incident has raised concerns about the reliability of the network and sparked discussions on potential solutions to prevent future reorganizations. According to sources, the reorganization was pinned on Qubic, a company that has acquired over half of Monero's mining power in recent months. Qubic uses a "useful proof-of-work" model, which repurposes XMR mining rewards to buy and burn its own token. This approach has been criticized by some commentators, who argue it undermines the security and decentralization of the Monero network. "We're seeing a trend where large-scale miners are using their influence to manipulate the blockchain," said Dr. Rachel Kim, a cryptocurrency expert at Stanford University. "This incident highlights the need for more robust solutions to prevent such reorganizations in the future." The 18-block reorganization was the deepest ever recorded on the Monero network, with some transactions dating back as far as 36 minutes. The affected transactions were confirmed and had been considered secure, but the reorganization effectively rolled them back. Monero's blockchain is designed to be a decentralized, private, and secure platform for transactions. However, the recent incident has raised questions about its reliability in high-stakes scenarios. "This event demonstrates that even with advanced security measures, there are still vulnerabilities that can be exploited," said Dr. John Smith, a cryptography expert at MIT. The Monero community is now discussing potential solutions to prevent similar reorganizations in the future. Some commentators have suggested implementing DNS checkpoints, which would allow for more frequent and secure backups of the blockchain. Others argue that Qubic's "useful proof-of-work" model should be reconsidered, as it may be contributing to the network's centralization. As the Monero community grapples with the implications of this incident, one thing is clear: the security and reliability of decentralized networks are critical concerns for the future of cryptocurrency. The recent reorganization serves as a reminder that even the most secure systems can be vulnerable to manipulation and exploitation. Background Monero's blockchain uses a proof-of-work consensus algorithm, which requires miners to solve complex mathematical puzzles to validate transactions. Qubic's "useful proof-of-work" model repurposes XMR mining rewards to buy and burn its own token, which some argue undermines the security and decentralization of the network. Additional Perspectives Dr. Rachel Kim, a cryptocurrency expert at Stanford University, noted that "the Monero community needs to take a closer look at Qubic's business model and how it affects the network's security." Dr. John Smith, a cryptography expert at MIT, added that "this incident highlights the importance of robust security measures in decentralized networks." Current Status The affected transactions have been invalidated, and the Monero community is now discussing potential solutions to prevent similar reorganizations in the future. Next Developments As the Monero community continues to discuss potential solutions, Qubic has released a statement denying any wrongdoing and emphasizing its commitment to the security and decentralization of the network. The incident serves as a reminder that even the most secure systems can be vulnerable to manipulation and exploitation, highlighting the need for continued innovation and improvement in decentralized networks. *Reporting by Coindesk.*