A hacker eliminated $50 million in Ether through the Decentralized Autonomous Organization, plunging investors right into a panic, but some argue that no theft has occurred.
Ether, the currency that is digital 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), sending the same as $50 million Ether into the ether and the cryptocurrency investment community into a panic.
If this seems bewildering, we will try to explain.
Ether is the currency supported by the Ethereum blockchain, a platform designed to deliver greater flexibility for decentralized peer-to-peer-traded currencies than jobs developed over the top of the bitcoin protocol. Ethereum permits the creation of ‘smart agreements,’ which enables a variety of business transactions and maybe not just currency transfers.
The DAO is an organization that is completely leaderless on the Ethereum platform and run entirely on computer code. It makes use of these smart contracts to develop a endeavor capital fund devoted to sponsoring cryptocurrency that is new. All DAO decisions are taken using a vote of its people whom use electronic tokens, purchased with Ether, to register their vote. In this way, DAO had raised $162 million to help fund fledgling projects.
But DAO members watched in horror, in real-time, on Friday, as a hacker exposed a s Continue reading