DAO - Reading Assignment

Answer the questions below:

  1. What is DAO?
  2. What function had the vulnerability?
  3. Why was the hard fork initiated?
  1. Distributed autonomous organizations implemented via smart contracts which enforce the governance mechanisms of a DAO.
  2. The split function
  3. Running on the tight timeline of the DAO split function, the proposed soft fork was too buggy, leaving a hard fork as the last option: “By doing so, the funds would be returned, and regulators would be kept out.”
  1. What is DAO?
    Distributed autonomous organizations
  2. What function had the vulnerability?
    split function
  3. Why was the hard fork initiated?
    to return lost funds - ultimately as a side unfortunate consequence side step decentralisation
  1. Distributed Autonomous Organization, which has a decentralised governance through smart contracts.
  2. split function
  3. the hard fork was done to reverse the hack. A soft fork was considered but cancelled because of security flaws.
  1. What is DAO?

Decentralized
Autonomous
Organization

  1. What function had the vulnerability?

Child DAO creation.

  1. Why was the hard fork initiated?

Some community members have disagreed with the decesion of ethereum founders to refund the loss to the hack victims (as it kind of violates the immutability concept of the blockchain technology).

  1. What is DAO?
    Decentralized/distributed autonomous organizations, governed by smart contracts

  2. What function had the vulnerability?
    ‘Split’ function, which allowed attacker to recursively call the function and withdraw money many times.
    Basically it allowed a way to retrieve the Ether first and update the balance late.
    Attacker managed to recursively call the split function and retrieved their funds multiple times before getting to the step where the code would check the balance.

  3. Why was the hard fork initiated?
    To retrieve stolen funds from DAO hack

What is DAO?
A virtual venture capital investment fund governed by the investors

What function had the vulnerability?
THe DAO Split function

Why was the hard fork initiated?
To rollback the hacker’s transaction and return the stolen funds.