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Qubic vs. Monero – Threat or spectacle?
Qubic announced on August 11, 2025 that they had launched a 51% assault against the Monero Blockchain. They then revealed their next goal: Dogecoin. Such statements were alarming to the crypto-community, since they raise concerns about the safety of the network, and its sustainability.
The anonymous coin blockchain had no tangible effects, but many viewed the project as a manipulation attempt and an attention-seeking scheme.
Libertarian Core
On the BitcoinTalk Forum, in 2012, an anonymous user, Come-fromBeyond, wrote that they were working on Qubic, or Quorum-Based Coin (QBC), a digital currency designed to address the weaknesses of Bitcoin. His idea was that a better analogue to the original cryptocurrency would include:
- Transferring funds is free
- Traceable transactions
- Miners can “prove of work” through their Internet connection, tied to an IP Address. This eliminates the need for costly hardware
- The rate of coin emission is determined by the quorum instead of developers
- Digital assets are more similar to fiat currencies
- There is no need to keep a large blockchain server; every miner can process only a part of the entire network
- Transaction speed is significantly increased
- The greener Blockchain with Lower Energy Consumption
Initially, the forum was sceptical. Many questions were asked to the developer about specific technical aspects, including network security against 51% attacks and quorum-based agreement mechanisms. Many participants thought the project was unrealistic, and Ironically suggested that Sergey Ivancheglo start off by learning the basics of cryptography.
As time went on, the discussions got more in-depth: Users began to show interest in Qubic. They also started asking questions that were specific about the project’s technical aspects. Ivancheglo’s first detailed explanation described the way the network can be protected from a Sybil-type attack.
In the same time period, Come-from-Beyond also published a report about Qubic. Although it was unavailable when this article was written, the description of its essence conveys what the document said, highlighting the “freedom centric” nature, and the author’s belief that libertarians would be interested in the network. The network architecture was later conceptually enhanced. A discussion was held on the importance of the individual in the community. It was argued that users with no specialized skills should still be able influence the development.
Qubic Now
Ivancheglo was involved in NXT’s creation, which is one of the earliest cryptocurrencies to have a Proof of Stake consensus. He then worked for IOTA, which presented Qubic’s IOTA focus as a top priority. Ivancheglo, however, left the project a year after its launch to concentrate on developing the AIGarth decentralized AI concept, which is based on Qubic.
Qubic’s mainnet launched in April 2022 with the token by the same name. AIGarth has been integrated into the network which utilizes the Proof-of Useful Work (PoUW).
The Proof-of Useful Work is a system that directs the computing power of a network to perform real and practical tasks.
The company memorandum states that the startup’s computing resources are used to solve outsourced problems. However, they do not include military uses in their technology.
Validators can operate with RAM using the network architecture. Qubic relies on the Quorum-Based Computation protocol (QBC), which is supported by 676 nodes of computing. More than two-thirds have to agree in order for a decision to be made. Every epoch, the composition of nodes changes based on how they are rated.
The speed record is now up to 15,5 million TPS.
Freedom to Dominate
Qubic had to test the “computation outsourcing” in the real world as part of its PoUW. As a proof-of-concept, the attempt to control Monero’s blockchain was made.
Qubic divided its initial resources on August 11, 2025 between training AIGarth and mining XMR. This approach became three times as profitable and attracted an influx of computing power.
Initially, Qubic sold its mined XMR, and then used the money to purchase QUBIC tokens, which were later burned, creating a downward inflationary spiral. After a vote the mechanism of reward was altered: the remaining half continued to burn, while the remainder was given as bonus money among the miners.
Fee switch was a strong economic incentive that attracted participants from Monero pools, and contributed to “capture” the network.
The Market’s Reaction: Consequences
Experts, opinion leaders and the Monero Community all criticized these events. Qubic was viewed by many as a publicity stunt, rather than a serious threat. This is because the results reported were not in line with the actual figures. Most observers concluded that this attack had a minimal impact, but it did draw attention to the sector.
Qubic created a dual-mining pool, where users were able to simultaneously mine Monero and QUBIC. The hashrate increased quickly, and the pool was promoted due to additional revenue from XMR.
QUBIC Today’s viral level= LawnGreen has risen by 75% since July 25, when the incident was reported, to $0.0000034. As of the date this article was written, its price stood at $0.0000026. XMR, on the other hand, experienced a slight drop in value of 25 percent between July 25, and August 15, but it has recovered since to $265.
Qubic’s actions led to a peak in online mentions for Monero, which had been at a 5-year high, as well as a record-high search volume of PoW, which was the highest it has ever reached.
The Monero Network continued to operate normally during the attack and processed transactions with no delays. The Qubic blog stated that the attack was motivated by economics, and not just the fact that mining is being outsourced.
The core functionality of Monero remains unchanged now that the testing is completed. Privacy, speed and usability of the Monero network haven’t been compromised. The ultimate goal, however, is to have Qubic miners provide security for the Monero Protocol. This will result in rewards flowing through Qubic pools. The higher profits generated by Qubic pools create a new incentive for Monero mining.”
Ivancheglo’s project was also subjected, for more than a full week, to an attack by DDoS, but the team successfully managed it.
Dogecoin: Next steps in the crosshairs
The Qubic community chose Dogecoin as the target of the “teachable attacks” against mining pools on August 17. Ivancheglo says that what’s happening is just mining. Ivancheglo said it will take about a week to get ready, but in the interim, Qubic Pool continues to mine XMR profitably.
After the incident, privacy-focused crypto community suggested new ways to prevent 51% attacks including:
- Localization of equipment
- Combining mining of XMR with other cryptocurrencies
- ChainLocks Solution from Dash Project Implemented
These events will likely have a profound impact on the crypto-industry, possibly leading to a stronger security for PoW or reorganization of PoW.
Qubic left a mixed impression with its actions. It is one thing for them to act as “white-hats” when developers request it, but quite another to launch an attack on their own.
The non-aggression concept, which Ivancheglo stressed when introducing Qubic to the world in 2012, seems particularly contradictory.
