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Cryptocurrency Platform Ethereum Raided by Hacker, $50 Million Stolen

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Cryptocurrency Platform Ethereum Raided by Hacker, $50 Million Stolen

A hacker eliminated $50 million in Ether through the Decentralized Autonomous Organization, plunging investors as 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), giving roughly the same as $50 million Ether into the ether and the cryptocurrency investment community into a panic.

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

Ether may be the currency supported by the Ethereum blockchain, a platform designed to produce greater flexibility for decentralized peer-to-peer-traded currencies than tasks developed at the top of the bitcoin protocol. Ethereum permits the creation of ‘smart agreements,’ which enables all types of business transactions and not just currency transfers.

The DAO is an organization that is completely leaderless on the Ethereum platform and run entirely on computer rule. 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 using a vote of its members who utilize digital tokens, purchased with Ether, to register their vote. In this manner, DAO had raised $162 million to help fund fledgling tasks.

Remain Calm

But DAO members watched in horror, in real-time, on as a hacker exposed a software flaw Read More