In an alarming development, members of the Monero community have revealed a single menpool that is approaching serious control over the entire network.
Despite active community posting, the Monero team has not yet provided an update, but this phenomenon could impact the entire network.
Monero MineXMR Pool
The mining pool known as MineXMR is the top pool of the Monero miner community with over 12,851 miners collectively generating 1.5 million kH/s. The amount of hashrate generated by them alone accounts for his 44.2% of the total hashrate.
The reason this is alarming is that it is never a good thing for a single miner or pool to gain more than a 51% advantage in hash rate, as it makes the entire network vulnerable to a 51% attack. .
51% attacks are considered to be one of the biggest threats to networks in the cryptocurrency space. When a single entity holds such control, it holds significant power not only in validating transactions but also in decision-making.
In such cases, the immutability of blockchain technology is at risk.
Especially in the case of Monero, this can cause significant confusion among investors. Currently, the network is experiencing reduced user activity.
Transaction activity is down 51% from a peak of 40,000 and is now at just 19,000.
Adding fuel to the fire, volatility is rising rapidly and is at its highest level in five months. This reduced the return on investment to a staggering -27.08.
As a result, investors may withdraw and prices may fall further. XMR is already trading at $177, 64% below its all-time high of $484.
Other 51% attacks
Last August, Bitcoin SV (BSV), a hard fork of Bitcoin, suffered a 51% attack, after which the coin lost 5% of its value. Two years earlier, another Bitcoin hard fork, Bitcoin Gold, had suffered a similar attack.
Ethereum Classic, a hard fork of Ethereum, also fell victim to a 51% attack not once, not twice, but three times in the same month of 2020. The first attack occurred on August 1st, the second on August 6th, followed by the third attack on August 29th.
None of these three coins suffered catastrophic losses, but that doesn't erase the fact that such situations are bad for the network.
This article was originally posted on FX Empire
