Blockchain Bookmarks

Collecting links to illustrate how stupid the blockchain can be.

Web 3:

Put bluntly, the Ethereum “world computer” has roughly 1/5,000 of the compute power of a Raspberry Pi 4! – The Web3 Fraud, by Nicholas Weaver

The Web3 Fraud, by Nicholas Weaver

Smart contracts:

The basic problem is that the code is the ultimate authority — there is no adjudication protocol — so if there’s a vulnerability in the code, there is no recourse. And, of course, there are lots of vulnerabilities in code. To me, this is reason enough never to use smart contracts for anything important. Human-based adjudication systems are not useless pre-Internet human baggage, they’re vital. – Smart Contract Bug Results in $31 Million Loss, by Bruce Schneier

Smart Contract Bug Results in $31 Million Loss, by Bruce Schneier

Related, but older:

… a hacker took advantage of some of the code of The DAO’s smart contracts and managed to steal 3,6 Million Ether (50 Million USD at the time). Fortunately for DAO investors, a waiting period for the withdrawal of funds was programmed into the Smart Contract, which the hacker had to abide by before they could exchange their stolen Ether into offline currency. This gave the DAO investors precious time to find a solution to save their investment. – The Failure of The DAO: Should We Regulate Cryptocurrency

The Failure of The DAO: Should We Regulate Cryptocurrency

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