A hacker removed $50 million in Ether from the Decentralized Autonomous Organization, plunging investors into a panic, however some argue that no theft has occurred.
Ether, the digital currency that was billed because the ‘next’ bitcoin, plunged in value on Friday when a hacker exploited a software flaw into the Decentralized Autonomous Organization (DAO), delivering the equivalent of $50 million Ether into the ether and the cryptocurrency investment community into a panic.
If this sounds bewildering, we are going to you will need to explain.
Ether is the currency supported by the Ethereum blockchain, a platform designed to provide greater flexibility for decentralized currencies that are peer-to-peer-traded projects developed at the top of this bitcoin protocol. Ethereum permits the creation of ‘smart contracts,’ which enables all forms of business deals and never just currency transfers.
The DAO is a completely leaderless organization built on the Ethereum platform and run entirely on computer code. It makes use of these smart contracts to build a venture capital fund devoted to sponsoring cryptocurrency that is new. All DAO decisions are taken via a vote of its users who use digital tokens, purchased with Ether, to register their vote. In this way, DAO had raised $162 million to help investment fledgling projects.
But DAO people watched in horror, in real-time, on as a hacker exposed a so Continue reading