Despite the recent DAO hack, soft and hard fork debate Ethereum has managed to stay stable above the 11$ mark, which is higher than it was before the creation of the failed Decentralized Autonomous Organization.
One of the proposed solutions regarding the future management of the stolen funds is the Soft-Fork, which was implemented in the Ethereum core software, only to be replaced by a newer version that undoes the code changes implemented in the Soft-fork. This update took place 6 days ago, due to a newly found attack vector in the
This update took place 6 days ago, due to a newly found attack vector in the Soft-Fork version that would deem the network too vulnerable to DoS (Denial of Service) attacks. It seems that the recent Ethereum Soft-fork implementation failure and recent network instability is finally taking a toll on the young cryptocurrency’s value, which has dropped over 13% today, making one Ether worth less than $10 (Data via Bitfinex).
Speculation regarding the reason for this sudden price crash is bound to happen. Some believe this price change has happened due to the imminent Bitcoin Block Halving, which may cause some serious F.O.M.O (fear of missing out) in the crypto community.
Others believe the recent developments regarding the DAO hack is finally taking a toll on the price, since the proposed solutions (hard-fork and soft-fork) are being regarded as a “band-aid over a stab wound”, causing more trouble than what they solve. The Ethereum team is dealing with a classic “double edge sword”.
The Soft-fork solution opened up the possibility for DOS attacks from the hacker who, due to the nature of the applied changes, would be able to spam the Ethereum network. The Hard-fork solution will shake the very grounds on which the concept of the decentralized Ethereum Network is based, creating a precedent for changes that would benefit a specific group or individual.
Doing nothing regarding the stolen funds can also have negative consequences on the stability of the network, leaving a big piece of the Ethereum’s cake in the hands of a malicious attacker, which could danger Ethereum transactions in a Proof of Stake scheme.
Charles Hayter, founder and CEO of CryptoCompare told The Merkle:
Ethereum has been in a bear market since the DAO debacle. It’s no surprise that the price is seeing downward pressure whilst there has been no final solution.
To the casual observer, these recent developments may seem like the beginning of the end of Ethereum, but many believe recent events will make for a stronger and safer ecosystem, as well as for cautious and well-informed investor and developer community.
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