As a Blockchain-Based Project Teeters, Questions about the Technology’s Security


There’s no shortage of futurists, industry analysts, entrepreneurs and IT columnists who in the past year have churned out reports, articles and books touting blockchain-based ledgers as the next technology that will run the world.

In the middle of all this hype is a small fire that threatens to put some of those words to ash: The hijacking last month of around US$40 million of dollars worth of a cryptocurrency called ether – named after its blockchain platform, Ethereum — from The DAO, a crowd-sourced investment vehicle that has so far raised over US$100 million in the digital currency. Instead, the DAO has become paralyzed and on the verge of collapse.

Briefly, on June 17 a hacker was able to create a second fund in the DAO, and, leveraging a vulnerability in the software-based smart contracts used to execute transactions, sent just over 3.64 million ether there.

Read more at ITWorld Canada