Slashdot Mirror
Researchers Criticize New DAO Ethereum VC Fund (softpedia.com)
Three cryptocurrency experts published a scientific paper Friday detailing seven attacks that could influence how the Decentralized Autonomous Organization (DAO) allocates its Ether funds. An anonymous Slashdot reader writes, "Coincidentally or not, they released their work with one day before funding for the DAO closed, and not surprisingly, Ether's price went down, devaluing the DAO from $150 million to $132 million."
From Softpedia: DAO is a crowdfunded project that works on the Ethereum network, a new crypto-currency network that deals with crypto-currency named Ether, which many experts say is better than Bitcoin's blockchain... Investors can submit funding proposals, on which the DAO users vote by submitting some of their tokens and a YES/NO vote. In the end, based on the tokens and YES/NO votes, the DAO's computer program decides on the outcome.
Softpedia reports that the paper released Friday also suggests a series of mitigations to a design they say will "incentivize investors to behave strategically; that is, at odds with truthful voting on their preferences."
From Softpedia: DAO is a crowdfunded project that works on the Ethereum network, a new crypto-currency network that deals with crypto-currency named Ether, which many experts say is better than Bitcoin's blockchain... Investors can submit funding proposals, on which the DAO users vote by submitting some of their tokens and a YES/NO vote. In the end, based on the tokens and YES/NO votes, the DAO's computer program decides on the outcome.
Softpedia reports that the paper released Friday also suggests a series of mitigations to a design they say will "incentivize investors to behave strategically; that is, at odds with truthful voting on their preferences."
Bitcoin's "success" (if you can call it that) is related directly to its algorithm which to this day is unbroken.
Any new system is subject to crazy ridiculous review, obviously. No one, I mean no one accepts this new system for anything. The fact that it made a Slashdot front page is pure greed (in terms of Slashdot whores) and means nothing whatsoever. Sorry I'm just an AC dope with no knowledge. Continue on, morons.
It's not everyday that a scientific publication has an impact of $18 million.
It's also not everyday that you see a scientific publication entirely drawn up in Google Docs, let see if they can organize a peer review process this way.
Interesting excerpt from the work:
Among the current DAO investors, there is already a whale who invested 888,888 Ether. This investor currently commands 7.7% of all outstanding votes in The DAO. For a proposal that requires only a 20% quorum, this investor already has 77% of the required YES votes to pass the proposal, and just needs to conspire with 2.3% of the token holders, in return for paying the conspirators out from the stolen funds.
One born every minute.
You are welcome on my lawn.
An unbacked "currency" called Ether and so many people taking it seriously?
You mean faster computers that actually power incredible computing pursuits? You know, those that actually run difficult algorithms for science rather than spending most of their CPU time on GUIs and making SQL queries in run-of-the-mill business software that you're probably writing for food.
You mean recent advances in machine learning, including a wide variety of applications in computer vision and natural language processing, more or less due to increased architectural support (improved database systems, distributed computing) and better algorithms?
You mean the considerably less-wasteful Bitcoin alternatives that can actually be better than a large part of the bloated and widely inefficient banking infrastructure?
You mean the abundance of information and knowledge on the internet, coupled with ever increasing capabilities to sift through useless content, and much easier scientific dissemination and collaboration?
You mean Linux that had very specific hardware requirements, but actually gained enough commercial support to get actual drivers?
You mean the better awareness of IP issues and maturing business models that support open source software?
I'm not saying it's a good state that a lot of these businesses rely on advertising and foolish VC money, which IMO are on the decline. But let's not equate advancing technology to running businesses. Looks like somebody just couldn't catch up with the world.
https://en.wikipedia.org/wiki/... aka "There ain't no such thing as a fair election"...