A cyber-attacker outsmarts a “smart contract”

  • Bitcoin’s blockchain handles mainly financial transactions, but ether’s can run computer code, including self-executing “smart contracts”, like those underpinning the DAO.
  • But by the DAO’s philosophy, that is irrelevant: all that matters is what the code allows.
  • But the DAO, which stands for Decentralised Anonymous Organisation, does not have rules as such, or staff to enforce them: instead, it has computer code, which is supposed to embody its purpose and to operate automatically.
  • The DAO is controlled by the votes of its members (anyone who has transferred ether to it) and by “the steadfast iron will of immutable code”, with transactions occurring automatically once enough members have voted for them.
  • The DAO carries a disclaimer on its website explaining that its description of all this is only a summary of the underlying code, which is the real rulebook.

Read the full article, click here.


@JuanSGalt: “Waw, the @TheEconomist thinks DAO means Decentralized ‘Anonymous’ Orgs. Lies or incompetence? #ethereum #bitcoin”


A cyber-attacker outsmarts a “smart contract”


A cyber-attacker outsmarts a “smart contract”