The DAO Hack — The Fall In Ethereum | DAO Hacked

The recent hack, which I wouldnt even call a hack in DAO has led to draining of users ether into a child DAO. Yea its quite weird when you hear it. The idea that this is a hack is quite weird as the user didnt really hack but used a recursive function in which the programmer split the DAO into the child DAO which in turn will be converted to ethereum to cash out after 27 days. I think Vatalik has explained this a bit better.

This has seen the price of Ethereum to drop from $20 to $10 almost half its value. The DAO since seeing record funding has dropped value dramatically.  This is not the end of ethereum or dao in my opinion but its a definite blow never the less.

The purpose of this post is to discuses what I realised with the aftermath of all this chaos. Smart contracts were presented as decentralised way of doing things on the blockchain. I had argued before that by design DAO was not that decentralised as it rested power in its developer or creator to change lots of aspects of the token itself. Hence putting power of centralisation in a decentralised blockchain. What shocked me even more was that we supporters of a uncontrolled and decentralized economy dont realize how centrailized ethereum has become. On request of Vatalik all exchanges stopped eth trading, deposits and withdrawals. If you can rest that kind of control under one person and we still call it decentralised then we have to go back and really understand the definition of that word. I dont know what is right and what is wrong. I guess this is why Satoshi Nakamoto remains anonymous, as he wants the community to decide. Same may argue that ethereums faith will be decided by the community, yes agreed but who has control over it was shown by 1 person or entity.