What is autonomous in DAO?

"Autonomous" in DAO means that its operations and governance are managed by self-executing code, without human oversight. This allows DAOs to function independently of traditional management structures. Decisions are executed automatically according to rules encoded in smart contracts.

What is the difference between a DAC and a DAO?

A DAC (decentralized autonomous corporation) typically operates as a profit-focused entity. They typically resemble a corporation in structure. In contrast, a DAO (decentralized autonomous organization) can pursue various goals beyond profit, with a broader governance model involving community input. While DACs emphasize profit distribution, DAOs emphasize decentralized governance.

How much was stolen in The DAO hack?

Approximately $60 million worth of ETH was drained from The DAO at the time of the hack in June 2016 (based on the valuation at that time). The attacker exploited a reentrancy flaw in the smart contracts to execute the breach. This event ultimately led to major structural changes within the Ethereum blockchain.

What happened to the first DAO?

The first DAO collapsed following the 2016 hack, which exposed flaws in its code. The Ethereum community opted for a hard fork to address the breach. This split resulted in two separate blockchains: Ethereum (ETH) and Ethereum Classic (ETC).

Could The DAO hack have been prevented?

Rigorous testing and auditing of The DAO’s smart contract code could have identified the vulnerability beforehand. The reentrancy flaw, exploited by the attacker, was a known risk in contract design. So, in all liklihood, comprehensive audits might have reduced the likelihood of such a large-scale exploit.

What is the difference between Ethereum and Ethereum Classic?

Ethereum (ETH) reversed The DAO hack through a hard fork and restored all stolen funds. Ethereum Classic (ETC) retained the original blockchain to prioritize immutability and preserve the unaltered transaction history. These differing philosophies continue to define each network’s approach to governance and updates.

What were the consequences of The DAO hack?

The DAO hack led to Ethereum’s hard fork, which in turn, divided the community and resulted in the creation of Ethereum Classic. It also heightened the focus on blockchain security, especially for smart contracts. The incident reshaped the development of security standards across the blockchain industry.

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