Reorganization and cancellation transactions: what is happening with the Monero network?

Monero (XMR) is a cryptocurrency created in 2014 that focuses on anonymity and protecting users’ personal data.

Transactions on the Monero network are anonymous — the sender, recipient, and amount are hidden. This is achieved using cryptographic methods: ring signatures, effective stealth addresses, and RingCT, which hides the amount. The network is decentralized and based on the RandomX protocol — a Proof-of-Work algorithm that is resistant to specialized equipment (ASIC), allowing mining on regular computers.

Monero: Behind the scenes of anonymity. How does the new generation cryptocurrency work?

We talk about how the search for a balance between privacy and government control has influenced the coin

Read more

Chain interference: chronology

• 51% attack: the Qubic mining pool, associated with the IOTA blockchain, gained control of more than half of the Monero network’s computing power (i.e., more than 51% of the hashrate).
• Block reorganization: as a result of this control, a chain reorganization of 18 blocks was carried out, leading to a chain rollback and the cancellation of ~117 transactions.
• Timeframe: the reorganization began at block 3499659 on Sunday at 05:12 UTC and ended around block 3499676, ~43 minutes later.
• Consequences: users were exposed to the threat of double-spending, as previously confirmed transactions could disappear.
• Market reaction: despite this, the price of XMR rose by more than 7%, from approximately $287 to $308, just a few hours after the attack.

What is network reorganization: a simple explanation

A chain of transactions in a blockchain can be represented as a railroad on which trains (blocks) move. Normally, trains run strictly according to schedule and along the tracks in one direction. But if someone suddenly builds a new section of track (an alternative branch) and trains start running on it, the system may choose this route as the main one and continue moving along it. The previous route is then considered “incorrect,” and the trains (blocks) on it roll back and disappear.

In the Monero situation, the Qubic mining pool created its own branch, which proved to be longer than 10 blocks due to power control. The network accepted it as the main one, and the previous “branch” of blocks (with transactions) was canceled. As a result, approximately 117 transactions were lost.

New target: Dogecoin

Earlier, the Qubic mining pool held a vote to select the next network to be attacked with a 51% attack. Qubic’s next target will be the Dogecoin network.

Community vote on the selection of the next target