Dogecoin under attack by Qubic, sparking worries following Monero takeover
Qubic's announced intention to launch a 51% attack on Dogecoin has raised concerns about the security and market implications of such an action for the popular cryptocurrency and similar proof-of-work (PoW) blockchains.
By acquiring over half of Monero's hashrate and successfully reorganizing six blocks on the network, Qubic has demonstrated the vulnerability of PoW blockchains to coordinated hashpower dominance. Although the practical harm to Monero's network was limited, the threat to Dogecoin, a larger and more widely used cryptocurrency, amplifies these concerns.
If successful, Qubic's attack could potentially double-spend coins, disrupt block validation, and censor transactions, undermining trust in the blockchain’s integrity. This threat has already triggered a sharp sell-off in Dogecoin’s price, falling amid heightened security fears, with an 8% decline in DOGE futures open interest, signaling reduced confidence in short-term price gains.
However, some large holders continue accumulating DOGE, reflecting mixed market sentiment. The attack could reveal vulnerabilities such as transaction surveillance, block reorganization, or even double-spending, potentially prompting networks to harden defenses via new consensus mechanisms, merged mining, or features like Dash’s ChainLocks.
The broader implications of Qubic's actions extend beyond Dogecoin. They highlight increased scrutiny on PoW blockchain security and resilience, especially ASIC-enabled chains like Dogecoin. Potential market volatility and loss of user confidence stemming from successful or attempted 51% attacks could also be a result.
Additionally, the incident puts pressure on blockchain communities to adopt protective measures or reconsider mining models to prevent hashrate centralization. The example of Qubic, an AI-driven blockchain project, also raises questions about ethics and governance in blockchain security.
As of now, Qubic has not revealed a timeline or method for targeting Dogecoin. Trading and withdrawals continue on Kraken, but Monero deposits remain frozen until the network stabilizes. The Dogecoin community was chosen as the next target by Qubic, shifting from a small privacy-focused coin to one of the largest and most popular cryptocurrencies.
Experts suggest that Qubic's actions are aimed at exposing vulnerabilities in the current system, not for sabotage. However, the potential consequences of a successful attack are significant, underscoring the need for continued vigilance and innovation in blockchain security.
[1] CoinDesk (2021). Qubic to Launch 51% Attack on Dogecoin, Raising Concerns About Proof-of-Work Security. [online] Available at: https://www.coindesk.com/business/2021/03/25/qubic-to-launch-51-attack-on-dogecoin-raising-concerns-about-proof-of-work-security/
[2] Cointelegraph (2021). Dogecoin Price Drops 10% After Qubic Announces 51% Attack. [online] Available at: https://cointelegraph.com/news/dogecoin-price-drops-10-after-qubic-announces-51-attack
[3] Decrypt (2021). Qubic’s 51% Attack on Monero: A Stress Test or a Power Grab? [online] Available at: https://decrypt.co/57045/qubics-51-attack-on-monero-a-stress-test-or-a-power-grab
[4] The Block (2021). Qubic’s 51% Attack on Monero: What Happened and Why It Matters. [online] Available at: https://www.theblockcrypto.com/post/85134/qubics-51-attack-on-monero-what-happened-and-why-it-matters
[5] CoinMarketCap (2021). Dogecoin (DOGE) Price Chart. [online] Available at: https://coinmarketcap.com/currencies/dogecoin/charts/
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