New Binance Report Shows Monero Could Experience a 51% Attack Plus Privacy Coin Innovation
Monero (XMR) is one of the largest and most popular cryptocurrencies around the world. The main feature that Monero has is privacy, allowing users to protect their data when transacting funds. Unfortunately, according to a recent report released by Binance Research, the latest hard fork experienced by Monero increases the possibilities of a 51% attack on the network.
Monero At Risk Of A 51% Attack
Monero has been always fighting against ASIC miners, which were developers by mining firms in order to increase the mining power for miners. However, these machines are very expensive and allow small groups of individuals and companies to control the whole network.
A few weeks ago, on March 9, Monero experienced a non-contentious hard fork that did not result in the creation of another blockchain. The main intention behind this hard fork was to update the dynamic block size algorithm, change the Proof-of-WOrk (PoW) algorithm, add dummy encrypted payment ID and shrink the size of amount encodings and using deterministic masks.
The decision to carry this hard fork out now was taken in order to reduce the influence that ASIC miners have on the Monero network. According to data provided by 2miners, the fork decreased the dominance of ASIC miners by over 80 percent.
This report presented by Binance shows that there are several benefits related to this hard fork. It “knocks out pre-fork ASIC miners,” it ads security by introducing long-term median to block sizes and prevent spam attacks and maximizing each block, and it levels the playing field for miners that have CPUs and GPUs.
However, the report shows that mining difficulty has significantly dropped after the hard fork. Nonetheless, the month-to-month increase in USD profitability is still low for users. There is also a risk of a 51% attack on the network since the hard fork increased the risk for such an attack.
On the technical level, the Monero hard fork was a success and it was implemented as expected without any issues. However, the risk of a 51% attack increased substantially as Binance Research reports.
Monero is currently the 13th largest virtual currency with a market capitalization of $907 million. Each XMR coin can be purchased for $53.