Kraken pauses Monero deposits after 51% attack amid hashrate concerns, highlighting vulnerabilities in smaller blockchains and reinforcing its user security commitment.
Kraken, a leading cryptocurrency exchange, has temporarily paused Monero deposits. This decision comes due to an ongoing 51% attack on the privacy-focused Monero blockchain. The incident has cast a big doubt upon the security of the network. This is the step that Kraken took to ensure its users and to instill confidence in the platform.
Kraken Acts After Mining Pool Claims Monero Hashrate Majority
Back to the matter of concern at hand, a 51% attack occurs when the hashing power of a blockchain is dominated by one mining pool that has more than 50% of the total hashing power. This enables the pool to counter-spend coins and modify transaction histories. This is a major threat to Monero, which is a blockchain that offers privacy. The integrity of the network is impaired by the attack.
Kraken announced on Friday in a statement. They wrote in the exchange, “We will freeze Monero deposits as a security measure until we update to a mined block that has less than 50% network hashing power held by one mining pool.” Such a concentration of power may give way to bad practices. Kraken pointed out that the action is meant to protect the money of its users.
As it goes on further, the exchange has made it clear that withdrawals and Monero trading are still offered. This is to make sure that the users may continue accessing their assets even during the pause. But deposits will resume after the network proves to be safe. Kraken is following the situation closely. The exchange is committed to giving updates at the earliest.
The 51% attack also concerns Qubic, a mining pool that recently declared control over the Monero hashrate. This domination has raised controversy, according to the status page of Kraken, which states that this pool controls the majority of the market. The attack has caused reorganization of six blocks on the Monero blockchain. This has made both the Monero community and the exchange operators concerned.
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Monero Deposit Pause Reveals Weakness in Smaller Networks
Moving to the greater impact, this occurrence shows the weaknesses of smaller blockchain networks. Smaller networks, such as Monero, are more vulnerable to such attacks in contrast to larger networks, such as Bitcoin or Ethereum. The mining power is concentrated, which harms decentralization. This might hamper the image of Monero as a safe privacy coin.
Moreover, the reaction of Kraken demonstrates its dedication to security and regulation. The trade is closely guarded with utmost consideration for the user. Its status page, which is being updated regularly, promises to customers that the pause is a temporary one. Kraken will also collaborate with the Monero community to rectify the situation. Such cooperation may result in greater protective measures in the future.
The interruption has caused people to talk about it on social media and forums. Users are optimistic that it will be solved soon. In case of network stabilization, Kraken will remove the restriction. This incident can compel the industry to create superior countermeasures against 51% attacks.
To sum up, the halt on Monero deposits taken by Kraken is an initiative. It deals with short-term security threats and facilitates current transactions. Transparency in the exchange keeps the users up to date. With the Monero network still trying to get back on track, this scare acts as a wake-up call on how difficult it is to keep blockchain secure.
