Cryptocurrency Platform Ethereum Raided by Hacker, $50 Million Stolen



A hacker removed $50 million in Ether from the Decentralized Autonomous Organization, plunging investors into a panic, however some argue that no theft has taken place.

Ether, the digital currency that has been billed while the ‘next’ bitcoin, plunged in value on Friday when a hacker exploited a software flaw in the Decentralized Autonomous Organization (DAO), sending the same of $50 million Ether into the ether and the cryptocurrency investment community into a panic.

If this sounds bewildering, we’ll attempt to explain.

Ether is the currency supported by the Ethereum blockchain, a platform designed to provide greater flexibility for decentralized peer-to-peer-traded currencies than projects developed on top of this bitcoin protocol. Ethereum permits the creation of ‘smart agreements,’ which enables all forms of business transactions and not just currency transfers.

The DAO is a totally leaderless organization built on the Ethereum platform and run entirely on computer code. It utilizes these smart contracts to create an investment capital fund devoted to sponsoring new cryptocurrency tasks. All DAO decisions are taken via a vote of its people who use digital tokens, purchased with Ether, to register their vote. In this manner, DAO had raised $162 million to help fund fledgling projects.

Remain Calm

But DAO users watched in horror, in real-time, on Friday, as a hacker exposed a software flaw to siphon $ 続きを読む Cryptocurrency Platform Ethereum Raided by Hacker, $50 Million Stolen