A visual representation of the digital Cryptocurrency, Bitcoin, on June 11, 2018 in Hong Kong, Hong Kong. (Photo by S3studio/Getty Images) We’ve all heard about the benefits of smart contract technology – a trustless tool to boot out the middleman when exchanging money, assets, or anything of value.
As revolutionary as blockchain’s latest buzzword may be, smart contract bugs are causing untold chaos. Looking at the numbers, one might take Ethereum’s 3% smart contract failure rate as a tolerable loss, a proverbial drop in the ocean.
Yet, when a safeguard fails to protect billions of dollars worth of currency, bad things can happen. Take ICON’s June 2018 bug, which allowed any user—apart from the smart contract creator—to freely enable and disable transactions.
The notion of immobilizing an $800+ million blockchain would worry most, but let’s not forget this blunder pales in comparison to past failures. There have been countless colossal botches, but the king of them very well may be the Distributed Autonomous Organization (DAO) smart contract bug back in 2016.
Seeing 3.6 million Ether drained via smart contract hacks, the DAO forced Ethereum’s founders to take radical measures and create a hard fork – the only possibility of salvaging the lost funds (15% of all Ether in circulation at the time). It takes time to iron out the kinks in any brand-new technology, and smart contracts are no exception. Read more from forbes.com…
thumbnail courtesy of forbes.com