A hacker removed $50 million in Ether from the Decentralized Autonomous Organization, plunging investors as a panic, but some argue that no theft has occurred.
Ether, the digital money that has been billed as the ‘next’ bitcoin, plunged in value on Friday when a hacker exploited a software flaw in the Decentralized Autonomous Organization (DAO), giving the same as $50 million Ether into the ether and the cryptocurrency investment community into a panic.
If this appears bewildering, we will try to explain.
Ether is the currency supported by the Ethereum blockchain, a platform designed to supply greater flexibility for decentralized currencies that are peer-to-peer-traded tasks developed over the top of the bitcoin protocol. Ethereum permits the creation of ‘smart agreements,’ which enables all types of business transactions and perhaps not just currency transfers.
The DAO is an organization that is completely leaderless on the Ethereum platform and run entirely on computer code. It uses these smart contracts to create a venture money fund devoted to sponsoring new cryptocurrency projects. All DAO choices are taken via a vote of its members who use electronic tokens, purchased with Ether, to register their vote. In this manner, DAO had raised $162 million to assist fund fledgling jobs.
But DAO members watched in horror, in real-time, on Friday, as a hacker exposed a computer software flaw to si Continue reading →