Monero is a privacy-focused cryptocurrency, but a bug has been discovered that could remove the privacy feature from transactions.
Monero discovers a bug in its selection algorithm
The development team behind Monero has revealed that they have spotted a bug in its decoy selection algorithm that could impact user’s transaction privacy. The cryptocurrency is known to be privacy-focused, and this type of bug threatens this feature.
A rather significant bug has been spotted in Monero’s decoy selection algorithm that may impact your transaction’s privacy. Please read this whole thread carefully. Thanks @justinberman95 for investigating this bug.
— Monero || #xmr (@monero) July 27, 2021
The bug was investigated by Justin Berman, a software developer interested in cryptography and finance. Monero wrote, “If users spend funds immediately following the lock time in the first 2 blocks allowable by consensus rules (~20 minutes after receiving funds), then there is a good probability that the output can be identified as the true spend.”
The team added that funds are never at risk of being stolen because of this bug. The bug is still present in Monero’s official code, and they are working hard to eliminate it.
Developers suggest a solution
The developers also suggested a solution to ensure users protect their privacy when carrying out transactions with Monero. The team wrote, “Users can substantially mitigate the risk to their privacy by waiting 1 hour or longer before spending their newly-received Monero until a fix can be added in a future wallet software update. A full network upgrade (hard fork) is not required to address this bug.”
Monero remains perhaps the most privacy-focused cryptocurrency and one of the top 30 by market cap. Despite this news, XMR is up by 4% over the past 24 hours, and it is trading above the $220 mark.