Monero (XMR) is gaining more and more impetus. Not only, the use is increasing but the price of Monero (XMR) is higher as well. It clearly indicates that Monero (XMR) is becoming more and more popular. When you look at the performance of Monero (XMR) year-to-date, it is up by almost 57%. It has been rising consistently. Currently, it is trading around $ 75.81. One of the primary reasons why it is gaining so much impetus is because it facilitates anonymous transactions. However, according to a recent report, it might be possible to flood the XMR blockchain with transactions to trace the origin of the transactions. If so, it poses a significant risk to the actual user base of Monero. We will today go into the details of this report to help you understand more.
Is it possible to trace Monero transactions?
The report states that tracing attacks are possible on the XMR blockchain. To understand this better, you have to 1st look at how Monero (XMR) provides anonymous transactions. It generates the decoy keys or mixins to ensure that nobody can trace back the transactions. The report states that by flooding the transactions not only the fee of each transaction will reduce in the Monero blockchain but also it is possible to remove the decoy keys to trace back the transactions.
How much would it cost to trace transactions?
The report states that such an attack would cost less than $ 1800 to trace back the transactions. More than 90% of the transactions will be susceptible to tracing. In practical terms, the transactions which can be traced back will be less, but 90% of them will be vulnerable to tracing.
How many transactions can be traced?
In practical terms, 47.63% of the transactions can be traced if the attack continues for 12 months. One of the points which the report does not highlight is that these stats can only be achieved if the transaction continues for 12 months. In reality, it is tough to flood the network for 12 months continuously. Hence; the attack might not be entirely practical.
Does it pose any risk to Monero (XMR) users?
Many Monero (XMR) users use it only because it provides anonymity. The problem is that this attack makes anonymity vulnerable. You never know when an attack might start which can uncover your transaction. However, the good thing is that now that it is out in the open, the developers will likely work overtime to make the network even more secure. Moreover, since the attack is only possible over a longer duration of time, it is likely that practically, the attack will not happen at all.
While Monero (XMR) might make it susceptible to trace the transactions but in practicality, it is tough. Also, since the Monero (XMR) developers might not work overtime to patch the loophole, it is just a matter of time before the Monero (XMR) network becomes even more secure.