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, however some argue that no theft has happened.

Ether, the currency that is digital was billed while the ‘next’ bitcoin, plunged in value on Friday when a hacker exploited a software flaw in 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 will attempt 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 on the top of the bitcoin protocol. Ethereum permits the creation of ‘smart contracts,’ which enables all types 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 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 people who use electronic tokens, purchased with Ether, to register their vote. In this way, DAO had raised $162 million to greatly help investment fledgling projects.

Remain Calm

But DAO users watched in horror, in real-time, on Friday, as a hack Continue reading “Cryptocurrency Platform Ethereum Raided by Hacker, $50 Million Stolen”