There Was No Hacking In The DAO, Mt. Gox 2.0

DAO Hack Ethereum

There is no decision made by me about the failure of the DAO. In start, I will talk about some facts first. With the unique blockchain, the Ethereum is the underlying computer protocol. Its main purpose is allowing the code to be executed across the computer networks.

On the Ethereum network, the DAO is the one of the first programs to run and it stands for the Decentralized Autonomous Organization. It can be defined as the company having no employee. The company is a code and no part of it is there outside the code. The company can be funded by the investors by sending money.

It went bankrupt by simply executing its code. It was only a failure due to the view of the investors because  the DAO works seamlessly from a technical standpoint.

Mt. Gox 2.0

The bankruptcy of the DAO was most closely resembled by the Mt. Gox bankruptcy. The failure of the Mt. Gox was misunderstood by the media and everyone knows that. It was trusted by the people and participants in it  lost a great amount of money. The same is in the case of the DAO, which was trusted without any investigation.

A lot of money was lost, but was not due to the Ethereum technical problem.

New Attack known as Internal 51 Percent

The fork of Ethereum is not decided by the developers, it is the miners who decide it. A new type of attack known as internal 51 percent attack. People are talking about the recouping lost funds due to bankruptcy. The company went bankrupt, in which they invested. It looks like a dangerous precedent.

The Contracts and Codes that Knocks the Door

Another cause of the DAO failure was that the company gave out money for the splitting. The splitting was kept by one person until the bank account becomes empty.  It can be defined as a bad business model, which can be demonstrated by the bankruptcy of the company.

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All posts published by the Bitcoin Advice Editorial Team combined. Primary objective is to provide quality content to our readers.

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