Monero’s 51% Attack Problem: Inside Qubic’s Controversial Network Takeover

Key Points

1. Qubic, led by IOTA co-founder Sergey Ivancheglo, now controls over 51% of Monero's hashrate, posing a potential threat to the network's security and decentralization.

2. A 51% attack could allow Qubic to reorganize blocks, double-spend, or manipulate transactions, though Qubic claims this is an experiment in resource diversion and game theory.

3. Monero's XMR price dropped 6% in 24 hours and 13.5% over the past week following Qubic's announcement.

4. Qubic's 'useful proof-of-work' system converts Monero mining rewards into USDT to buy and burn its own QUBIC tokens, increasing its control over Monero's hashpower.

5. Smaller proof-of-work blockchains like Monero are more vulnerable to 51% attacks compared to larger networks like Bitcoin due to lower hashrate costs.