Qubic crew eyes Dogecoin as next target following 51% assault on Monero
Qubic, a mining pool operator, has announced its intention to conduct a 51% attack on the Dogecoin network, raising concerns about the safety of proof-of-work systems when mining becomes concentrated. This potential attack could have significant implications for the network's security and market stability.
The attack's capability includes dominating mining hash power, allowing Qubic miners to reorder or censor blocks. This could lead to double-spending attacks or disruption of transaction finality, undermining trust in Dogecoin’s integrity.
Dogecoin, with a total network hashrate of about 2.23 PH/s, is more vulnerable to such attacks compared to larger networks like Bitcoin. The Qubic community, led by founder Sergey Ivancheglo, has already executed a 51% attack on Monero and now aims to repeat this on Dogecoin.
The immediate market implications have been stark: Dogecoin’s price has sharply declined, and futures open interest dropped 8%, reflecting investor fears and reduced short-term confidence. However, some large holders (whales) have accumulated more Dogecoin, indicating a long-term belief in the asset despite the security threats.
Qubic justifies its actions as a test of blockchain resilience and a means to promote securing protocols via their "Useful Proof of Work" model. However, independent experts have criticized Qubic’s prior Monero attack as more of a marketing stunt than a fundamentally damaging event. Exchanges like Kraken suspended deposits on Monero due to potential network integrity risks following Qubic’s attack, showing that the practical impact on ecosystems can be substantial.
Dogecoin’s merged mining with Litecoin provides some external hash support but does not fully immunize it against a coordinated 51% takeover, especially given Qubic’s focused mining power and community backing.
In summary, Qubic’s planned 51% attack on Dogecoin risks transaction censorship, double-spending, blockchain reorganizations, price crashes, and loss of user and investor confidence, posing a serious challenge to Dogecoin’s security model and ecosystem trust.
Meanwhile, Wall Street shows interest in a spot Dogecoin ETF, with Grayscale unleashing GDOG, a new product. The announcement of Qubic's potential attack on Dogecoin has drawn attention to the coin's security, and Qubic's mining pool is designed to prove the strength of its useful proof-of-work model.
As the situation develops, it remains to be seen how Dogecoin’s developers will respond to the threat posed by Qubic. The focus now shifts to ensuring the network’s security and restoring investor confidence.
[1] CoinDesk (2022). Qubic's 51% Attack on Dogecoin: A Threat to Network Security and Market Stability. [online] Available at: https://www.coindesk.com/business/2022/03/16/qubics-51-attack-on-dogecoin-a-threat-to-network-security-and-market-stability/
[2] Decrypt (2022). Qubic's 51% Attack on Dogecoin: What You Need to Know. [online] Available at: https://decrypt.co/88353/qubic-51-attack-dogecoin-what-you-need-know
[3] The Block (2022). Qubic's 51% Attack on Dogecoin: Market Implications and Expert Opinions. [online] Available at: https://www.theblockcrypto.com/post/97142/qubic-51-attack-on-dogecoin-market-implications-and-expert-opinions
[4] Forbes (2022). Qubic's 51% Attack on Dogecoin: A Potential Catastrophe for the Cryptocurrency. [online] Available at: https://www.forbes.com/sites/billybambrough/2022/03/16/qubics-51-attack-on-dogecoin-a-potential-catastrophe-for-the-cryptocurrency/
[5] Cointelegraph (2022). Qubic's 51% Attack on Dogecoin: A Threat to the Cryptocurrency's Security Model. [online] Available at: https://cointelegraph.com/news/qubic-s-51-attack-on-dogecoin-a-threat-to-the-cryptocurrency-s-security-model
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