Blockchain

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The DAO Attack

We take a look at the most significant event in cryptoeconomics since the birth of Bitcoin and it's impact on the Ethereum Blockchain

The DAO (Decentralised Autonomous Organisation) - a programme built on the Ethereum Blockchain platform was breached earlier this year in a case that resulted in $50 million worth of Ether being stolen. 

Only weeks after one of the largest crowd funding projects ever, the DAO seemed a promising application that contributed to bringing hype to the Blockchain space. One hacker spotted a flaw in the DAO's code and managed to drain 3.6 million Ether into a personal account which sent the Etheruem community into panic mode, causing the price to plummit and created a reluctance amongst the community to invest. The price of Ether has since recovered somewhat and the trust has been regained to a certain extent, but the attack proved that Blockchain technology is not flawless.

The attack and subsequent events has changed perceptions regarding the security of the Etheruem network and also put a spotlight on the 'grey area' surrounding cryptocurrency and Blockchain technology in general.

 

To discover how the Etheruem community reacted to the DAO attack, view the EMEA Grid Blockchain Hub's article: To fork or not to fork

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