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Mastering Blockchain.. - Third Edition

You're reading from Mastering Blockchain.. - Third Edition

Product type Book

Published in Aug 2020

Publisher Packt

ISBN-13 9781839213199

Pages 816 pages

Edition 3rd Edition

Languages

Concepts

Author (1):

Imran Bashir

Table of Contents (24) Chapters

Preface

1. Blockchain 101

2. Decentralization

3. Symmetric Cryptography

4. Public Key Cryptography

5. Consensus Algorithms

6. Introducing Bitcoin

7. The Bitcoin Network and Payments

8. Bitcoin Clients and APIs

9. Alternative Coins

10. Smart Contracts

11. Ethereum 101

12. Further Ethereum

13. Ethereum Development Environment

14. Development Tools and Frameworks

15. Introducing Web3

16. Serenity

17. Hyperledger

18. Tokenization

19. Blockchain – Outside of Currencies

20. Enterprise Blockchain

21. Scalability and Other Challenges

22. Current Landscape and What's Next

23. Index

The DAO

The Decentralized Autonomous Organization (DAO), started in April 2016, was a smart contract written to provide a platform for investment. Due to a bug, called the reentrancy bug, in the code, it was hacked in June 2016. An equivalent of approximately 3.6 million ether (roughly 50 million US dollars) was siphoned out of the DAO into another account.

Even though the term hacked is used here, it was not really hacked. The smart contract did what it was asked to do but due to the vulnerabilities in the smart contracts, the attacker was able to exploit it. It can be seen as an unintentional behavior (a bug) that programmers of the DAO did not foresee. This incident resulted in a hard fork on the Ethereum blockchain, which was introduced to recover from the attack.

The DAO attack exploited a vulnerability (reentrancy bug) in the DAO code where it was possible to withdraw tokens from the DAO smart contract repeatedly before giving the DAO contract a chance to update...

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Authors (1)

Imran Bashir

Imran Bashir has an M.Sc. in Information Security from Royal Holloway, University of London, and has a background in software development, solution architecture, infrastructure management, and IT service management. He is also a member of the Institute of Electrical and Electronics Engineers (IEEE) and the British Computer Society (BCS). Imran has extensive experience in both the public and financial sectors, having worked on large-scale IT projects in the public sector before moving to the financial services industry. Since then, he has worked in various technical roles for different financial companies in Europe's financial capital, London.

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