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Cryptocurrency Platform Ethereum Raided by Hacker, $50 Million Stolen

Cryptocurrency Platform Ethereum Raided by Hacker, $50 Million Stolen

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

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

If this sounds bewildering, we’ll you will need to explain.

Ether is the money supported by the Ethereum blockchain, a platform designed to provide greater flexibility for decentralized peer-to-peer-traded currencies than projects developed on the top of this bitcoin protocol. Ethereum permits the creation of ‘smart contracts,’ which enables all forms of business transactions rather than just currency transfers.

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

Remain Calm

But DAO users watched in horror, in real-time, on as a hacker exposed a software flaw to sip Continue reading Cryptocurrency Platform Ethereum Raided by Hacker, $50 Million Stolen