The new documentary Digital Empire shows the 2016 DAO hack and the risks and opportunities of DAOs. We’ve taken a closer look.
In the second episode of “Digital Empire,” director Gregor Schmaltsred takes a look at the digital vision of the future and the risks associated with it. In 2016, an unknown hacker hacked the blockchain-based venture capital fund The DAO. A simple code bug made it possible to repeatedly withdraw small amounts from the blockchain unnoticed. An unknown hacker was after a lot of money. Today, the total portfolio will be worth about $10.5 billion. At that time it was much less.
The digital empire about the opportunities and risks of new structures
A few crypto enthusiasts around Alex Van de Sande were able to reset everything to zero after a short time. The withdrawal of funds was reversed by reprogramming the blockchain (fork). Fortunately, the shareholders got all their contributions back. This time the story ended well for the community, who sometimes invested a lot of money in the project. But what will happen next time?!
The Vitalik Buterin blockchain can be used in many ways
The first DAO was invented by blockchain developer Christoph Jentzsch. The acronym DAO stands for Decentralized Autonomous Organization. This is a code based organization that is supposed to function without any hierarchy. Everything is transparent, everyone deserves the same. All organizational processes can be run independently via smart contracts. The Ethereum blockchain essentially allows for much more than just realizing cryptocurrency. The term DAO became known on the scene, for example, through the fundraiser of Julian Assange or the former operator of the Silk Road, Ross Ulbricht.
The digital empire is easy to understand
But there is no legal form and no legal basis for it. The DAO is not a corporation, it is not a private individual, and it is not an association. It starts with the fact that members come from all over the world. So where is the callable address, and where is the head office? Somewhere on the internet, on the blockchain for example? In any case, this form of organization is too new to legally classify. So it’s even questionable whether the Jentzsch source code exploit is illegal. In fact, the hacker, who was said to be from Austria, only strictly adhered to the specifications of the real code. The banishment was morally reprehensible by any means. It doesn’t matter that the hacker undoubtedly showed his amazing skills through this work.
DAO can be anything. Charity, charity, commercial organization, fundraising and much more. It would certainly be tempting to many if they no longer had a president above them in the future. Everyone deserves the same, everyone should be able to contribute fully to the project.
DAO: Can an organization dispense with its president?
The documentary Digital Empire features many actors who present the opportunities but also the dangers of this constellation. Because in this area there is no central bank and no regulation or prosecution by an authority. Given the amount of money available, if someone could exploit a vulnerability, they would likely do so.
However, it is possible that DAO will soon appear as natural to us as many other innovations. Believe it, for example bass grasmerewho has accompanied many Ethereum developers for a long time.
Episode “The Crypto Visionary and the Heist of Millions” aired over here Available in the ZDF Media Library. The episode is easy to understand and intriguing to strangers.
What power do algorithms have over us?
In another episode of “Digital Empire” by Edith Lohley and Lina Nagel, the documentary questions were The power of algorithms. Code can be very unfair and willfully fuel scandals, as Metas Facebook likes to do. Because the operating company will make more money, the more people will discuss there.
But the code can also discriminate, just as people are reluctant to show overweight people on Instagram and block their photos. However, the software code can also be used in the medical field become very problematicwhich is covered in another episode.
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About Lars Soperaj
Lars Soberaj started working for various computer magazines in 2000 as a career changer. In addition to gulli.com, several other online magazines were added in 2006. He is the founder of Tarnkappe.info. In addition, Gandhi, as he calls himself in the scene, has been teaching participants in various universities and training institutions how the Internet works since 2014.
“Explorer. Communicator. Music geek. Web buff. Social media nerd. Food fanatic.”
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