A $50 million heist calls a new virtual currency into question. What should Ethereum do about it?
Jessi Hempel

There have been a constant stream of crypto-currency hacks, mostly Bitcoin and now the DAO hack.

I’m far from an expert on block-chain based crypto-currencies or safe distributed financial transactions. But seeing all of these hacks we can conclude one of two things:

  1. The people who implement the crypto-currency software are incompetent.
  2. This software is really hard to get right, even for extremely knowledgeable and competent computer scientists.

In the case of the Mt.Gox hack, there appears to be some incompetence and negligence on the part of Mark Karpelès and company. But in many other cases, the people who implement crypto-currency clearing are careful and knowledgeable. This suggests that the technology is really hard to get right.

The constant security breaches suggest to me that this is a technology that is not ready for prime time.

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