The DAO Was Not Hacked | Mt. Gox 2.0 by: Steve Patterson

Editor’s note: This is a guest post by Steve Patterson and a opinions offering are those of a author alone.

Until recently, I’ve remained uncertain about a DAO failure. Should Ethereum soothing fork, tough flare or do nothing? we have a indeterminate conclusion: a best greeting is to do nothing. Let me explain why.

First, we have to lay out a facts. Ethereum and a DAO are dual apart things. Ethereum is a underlying mechanism protocol, with a possess singular blockchain. It exists for one purpose: to concede formula to be executed opposite a enormous network of computers.

The DAO is one of a initial programs to run on a Ethereum network. “DAO” stands for “Decentralized Autonomous Organization” – it’s a new form of company, privately designed to be run as an “autonomous organization.”

This is crucial:the DAO is a company. It’s a association but humans. That’s a point. No partial of a DAO exists outward of a code. The association is a code. Investors can select to account a association by promulgation it money.

The DAO was not hacked. It simply executed a code, and by doing so, it went bankrupt. It was a bad business model. The DAO was usually a failure



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