News From The Crypto Currencies Scene

53 million worth of digital currencies stolen from investment fund

$53 million worth of digital currencies stolen from investment fund

The trust in cryptocurrencies has had a big punch after a hacker was able to abstract $53 million from the investment fund The DAO. DAO is short for 'decentralized autonomous organization'. Multiple experts wrote that the hack was possible thanks to a mistake in the code. The platform uses the digital coin ether, which is seen as the possible successor of bitcoin.

 

 

Ether is the digital coin of Ethereum. Ether operates with the blockchaintechnology to save and spend money. Contracts can be concluded as well through this system. According to advocate's of the blockchain the system superfluouses banks and authorities have no possibility interfering the financial markets.

 

 

The hack shows that the advantages can turn into a disadvantage: To save the valuta the organization behind Ethereum want to retrieve the money. This intervention, however, contradicts with the philosophy 'no interference from outside'. To retrieve the money, the majority of the users has to agree.

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