Skip to Content

But a hack, which exploited security vulnerabilities in its code and resulted in the theft of $55 million worth of ether, put paid to its ambitions. The question of what to do with the remaining funds cleaved the ethereum developer community. Large investors in the project demanded a hard fork, which would have refunded investors by creating a "withdraw" function in the code. But developers argued for a soft fork, which would have frozen funds and prevented the hacker from cashing in on the stolen ether. Underlying their argument was the "code is law" rule, wherein code pertaining to the original blockchain should remain immutable regardless of hacks. The money guys won, and a hard fork created ethereum while the original blockchain continued as ethereum classic. As of this writing, ethereum is the second-most-valuable cryptocurrency while ethereum classic is ranked 17th. Trading in DAO tokens was discontinued last year. (See also: DAO, Blockchain, and the Potential of an Ownerless Business.) 


Join in on the conversation with Alex Masters Lecky when you subscribe to CRYPTONICLES.