Ethereum is one of the hottest topics in the financial technology world today and with the advancements in cryptocurrency it is no surprise that a lot of people are expecting the Ethereum price to go up and Ether demand to rise. In the latest on Ethereum news, funding on an ‘Ethereum fund’ closed at 9 a.m. GMT on 28 May, but problems seem to have already risen in the wake.
According to Fortune, “The DAO is basically one big, complex smart contract comparable to a venture capital fund. It’s offering its own voting shares—called DAO tokens—in exchange for a cryptocurrency called Ether, though for regulatory reasons, The DAO states its tokens are not a form of equity.”
This financial vehicle DAO closed its funding just recently and its appeal as a pseudo-venture capital fund that runs autonomously without the need for humans appealed to a lot, raising more than $150 million in Ether.
According to IEEE Spectrum, albeit being one of the most successful crowd funded ventures to date, blockchain researchers released an article with regard to the flaws in the system. The researches want the different stakeholders to halt funding activities until flaws and vectors of attack can be addressed.
These researchers Emin Gun Sirer, Vlad Zamfir and Dino Mark are the authors of the blog post, are asking for the halt and they have also said that the DAO creators have failed, IEEE Spectrum also reported.
There are also problems with the voting mechanism that is set into place. Zamfir says, “The people who don’t participate, the people who are just in it for the ride, who are non-active members of The DAO, they’re going to be the ones who get screwed by biases and vulnerabilities.”
It appears that new code has to be written to address various vulnerabilities to attack or voting problems. Banks have also looked into blockchains into securing their systems as the financial trade industry is also susceptible to attacks. These recent reports, might suggest that more work has to be done in order to preserve the integrity of systems like Ethreum.
