DAO Security Breach
The recent security breach encountered by DAO network raised some serious concerns regarding the so called safeguarded decentralized system. The Decentralized Autonomous Organization (DAO) that was set up to support Ethereum projects had been attacked by anonymous black hats who tried to steal its cryptocurrency reserves. It is reported that somewhat around 3.6 million ethers have been stolen in the process and the stolen amount is valued more than $60 million. As a matter of fact, DAO had accumulated up to 9.5 million ethers so far, one third of which has been drained by the attackers.
However, the organization claims that the money is not completely lost and chances are, most of it will be recovered back soon. The co-founder of Ethereum and one of the DAO curators named Vitalik Buterin reported through a blog post that the stolen ethers are in a child DAO right now and it will take at least 27 days for the attackers to withdraw the entire amount.
Ethereum Is Still Unaffected
The security breach took place owing to the vulnerabilities in DAO system and Ethereum has nothing to do with it. Ethereum is completely safe and unaffected from the attacks. Vitalik Buterin explains that it was a recursive call attack through which the attackers drained a certain amount of ethers in many single transactions. The attacks continued to take place for several hours and drained out one third of the ethers. Slock.It has proposed a solution to recover the lost amount and DAO is looking forward to it. Alas, it might be the end of DAO and it is likely to shut down or transform into a simple contract where the users can only withdraw. But Ethereum will have no major impact of this whatsoever and it will continue to function in the same way it is doing right now.
- See more at:
https://www.digitalcoinsexchange.com/blogs/dao-security-breach-millions-of-dollars-at-stake/
