Obligatory

I don’t support the use of Monero or other proof of work cryptocurrencies since they’re destroying the planet.[1] However, I know people are going to use Monero anyways. So it makes sense to give this warning.

Practical Statistical Attack on Monero

There’s a practical statistical attack on Monero related to its decoy selection algorithm.[2] Work to resolve the issue is in progress. It’s not clear how severe this vulnerability is, but Monero’s adversaries (DEA, FBI, IRS, NSA) may already be using it.

It might not be safe any more to rely on Monero for your freedom. If you still must use Monero, use non-KYC exchanges, different addresses for every transaction, and make sure your addresses never get linked to your real-world identity.

Defense in Depth

None of us knows how soon Shor-capable quantum computers will be built. But when they are built, Monero’s privacy may be under threat yet again.

So just be aware that Monero isn’t perfect and it may not protect you forever. The Monero blockchain is public. So when the cryptography is broken or there’s a bug in the client software[3], your transactions have nowhere to hide. Shor-capable quantum computing may not come to pass, but just be aware that breaks in security happen.

You can practice defense in depth by treating Monero as if it’s as transparent as Bitcoin. Then when there is a break in Monero’s privacy, you can rest easy knowing you thought ahead.

Link(s):
1: Avoid Using Cryptocurrency
2: OSPEAD - Fortifying Monero Against Statistical Attack
3: Monero Bug Impacts Privacy