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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 removed $50 million in Ether from the Decentralized Autonomous Organization, plunging investors into a panic, but some argue that no theft has occurred.

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

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

Ether is the money supported by the Ethereum blockchain, a platform designed to provide greater flexibility for decentralized currencies that are peer-to-peer-traded projects developed over the top for the bitcoin protocol. Ethereum permits the creation of ‘smart contracts,’ which enables all types of business transactions and never just currency transfers.

The DAO is a entirely leaderless organization built on the Ethereum platform and run completely on computer code. It makes use of these smart contracts to create a venture capital fund devoted to sponsoring cryptocurrency that is new. All DAO decisions are taken via a vote of its users who use digital tokens, purchased with Ether, to register their vote. In this manner, 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 Read More