DAO - Reading Assignment

Ethereum Smart Contract Security Course
#41
  1. ‘the’ DAO is was a decentralized venture capital fund of sorts. Users would deposit ETH, get tokens, and these tokens allowed them to vote on which projects the Fund would invest in. In turn, this entitled token holders to dividends on those projects.
  2. The function that was vulnerable was the “Split” function.
  3. The hard fork was initiated in order to restore the funds to their original owners. A soft fork was tried initially but it revealed even more vulnerabilities. In the end, the majority voted on a hard fork.
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#42

  1. What is DAO?
    It was a virtual venture capitalist project created by Slock.it. Investors would pool their money to create investments. It raised $150 million USD and it got hacked.

  2. What function had the vulnerability?
    In the case that the minority would be suppressed by the majority, the creators made it possible for the minority to be able to retrieve their funds and split the DAO. They would take their Ether to the child DAO and have the same abilities and restrictions.

  3. Why was the hard fork initiated?
    In order to return the funds to the investors and patch the problem, the community needed to fork the blockchain.

#43

1.Distributed autonomous organizations.
2.Split function.
3.To rollback the hacker’s transaction and by that, return the stolen funds.

#44

  1. What is DAO?
    DAO stands for decentralized autonomous organization. It’s also the name of one of the first large-scale smart contracts on ethereum that worked as a venture capital company.

  2. What function had the vulnerability?
    The refund call within the “split” function could be called recursively before sender balance was logged.

  3. Why was the hard fork initiated?
    So that DAO investor could be refunded for their lost funds.

#45

  1. What is DAO?
    DAO is a distributed autonomous organization which is implemented by using smart contracts.

  2. What function had the vulnerability?
    The “Split” function had the vulnerability.

  3. Why was the hard fork initiated?
    The hard fork was initiated in order to return the funds to the rightful owners.

#46

Q). What is DAO?
A). The DAO was an organization that was designed to be automated and decentralized. It acted as a form of venture capital fund, based on open-source code and without a typical management structure or board of directors. To be fully decentralized, the DAO was unaffiliated with any particular nation-state OR GOVERNING LAWS, though it made use of the ethereum network.
Q).What function had the vulnerability?
A).THE Infamous ‘Split’ Function and the Child DAO WERE THE ROOT CAUSE OF THIS FLAW WHICH RESULTED IN THE HACK ON jUNE 16 2016. THE CONSEQUENCE OF THIS HACK CAN BE FELT TO THIS DAY.
Q).Why was the hard fork initiated?
A). The creators of the DAO wanted to introduce a protection for the minority: The idea was to make the minority able to retrieve their funds when a proposal they do not want to be a part of gets approved despite their objection, which was, in fact, a DAO equivalent of the appraisal right we see under the corporate law in some jurisdictions. A coder found a loophole in this procedure. Once a split function is called, the code was written in a way to retrieve the Ether first and update the balance later. iT WAS DECIDED THAT BY Exercising a hard fork on the Ethereum blockchain to overwrite the history and restore the stolen ethers This would THEN reverse the all transactions happened after the starting point of the work.

#47
  1. distributed autonomous organization
  2. the chain split function. It did not follow the check-effect-interact pattern making it possible to get multiple refunds from the original DAO
  3. According to proponents of the hard fork, the hack was too big to let go and the community should be the final decision-makers. By doing so, the funds would be returned, and regulators would be kept out. The hard fork proposal was voted and accepted by majority of the Ethereum community.The hard fork was completed and the funds were returned to the investors.
#48
  1. Distributed autonomous organizations implemented via smart contracts which enforce the governance mechanisms of a DAO.
  2. The split function
  3. Running on the tight timeline of the DAO split function, the proposed soft fork was too buggy, leaving a hard fork as the last option: “By doing so, the funds would be returned, and regulators would be kept out.”
#49
  1. What is DAO?
    DAO stands for distributed autonomous organizations. DAOs are smart contracts that function as a governance mechanism.
  2. What function had the vulnerability?
    ‘split’ function. It was a function that allowed a participant to spit the funds in a Child DAO. So if they didn’t agree with the actual majority governance participants they could split. This function was build with a weak paradigm:
    1. Refund
    1. Record the refund
      So an attacker wrote a recursive function that allowed him to withdraw funds in a Child DAO for an amount much larger of his balance.
      They hacked the contract with re-entrancy bug (Basically the refund call a address that was a contract function that ask for Refund in a loop)
  1. Why was the hard fork initiated?
    To solve the issue there were 3 proposal:
    1. Let it be
    1. fix with a soft fork
    1. fix with a hard fork

After that the 1,2 were dismissed, they opted for the #3 an hard fork that give birth to two blockchains: Ethereum and Ethereum classic

#50
  1. What is DAO?
    its a distributed autnomous oprganization, its an organization formalized through a series of smart contract, in which each user tokens represents their rights to vote on any given proposal. This DAO was the biggest crowdfunding project up to the date of the article writing time.
  2. What function had the vulnerability?
    The split function, because it was written to retrieve the funds first and then update the balance. And additionally, the function did not check if there was a recursive call of it, so the attacker could call the same function recursively and retrieve 3.6 million ether before updating the balance!! What a BIG hack!!! cheers for that one!

but one thing I do not understand, the first time it retrieves the user funds, and the second, third and so on time it does, I would understand that it takes the “parent” smart contract funds, but how do you know to which user the funds belong to?
3. Why was the hard fork initiated?
Several solutions to the hack problem were proposed and the hard fork was the one that gained more momentum, at a time where time was crucial because they had limited time to make a decision.

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#51
  1. What is DAO?
    Dao is Decentaralized autonomus organization. In this situation DAO is project built by Slock.it and it’s virtual venture capital fund that is governed by the investors of the DAO built on etherum blockchain.
  2. What function had the vulnerability?
    Split function
  3. Why was the hard fork initiated?
    To return the funds
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#52
  1. What is DAO?
    Decentralized Autonomous Organization. The DOA was a smart contract project created by Slock.it that went live on the Ethereum blockchain on 30 April 2016. On 16 June 2016 the DOA was hacked for 3.6M Ether worth around $150M at the time.
  2. What function had the vulnerability?
    The Split function.
  3. Why was the hard fork initiated?
    To reverse the hack by overwriting the blockchain history and returning the stolen ethers.
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#53

  1. What is DAO?
    DAO is Decentralized autonomus organization. In this instance, DAO was a project built by Slock through a series of smart contracts. It allowed its users to govern the DAO through the right to voting.

  2. What function had the vulnerability?
    The Split function

  3. Why was the hard fork initiated?
    To return the funds to the users

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#54
  • What is DAO?
    Decentralized/Distributed Autonomous Organization
  • What function had the vulnerability?
    Split function allowing minority stakeholders to created their own DAO and withdraw funds into it
  • Why was the hard fork initiated?
    The community split in the decision of what needs to happen with the lost funds and while a soft fork was originally proposed it was decided against due to security risks
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#55

1. What is DAO?
Dao stands for a Decentralized Autonomous Organization.

2. What function had the vulnerability?
SplitDAO was vulnerable to reentracy attack. Basically, the hacker found a loop hole in smartcontract that could drain funds several times to a child Dao.

3. Why was the hard fork initiated?
The community decided the hack was to severe to ignore it, so they vote on the proposal of a hard fork in order to return the stolen funds to rightful owners.

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#56

  1. What is DAO?
    A Decentralised Autonomous Organisation. Meaning it is run by itself, by the code.

  2. What function had the vulnerability?
    The function to allow users to withdraw their funds if they disagreed with the majority in where the funds would be alloacted. It was the split function, which created a Child DAO where the funds would sit for the 28 day cooling off period .

  3. Why was the hard fork initiated?
    After 28 days the attacker would be able to access the funds. Due to time constraints, the soft fork solution, which had it’s own set of bugs, would have stopped the user from being able to spend the funds - whereas the hard fork would essentially roll back the transactions and give all of the investors their funds back.

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#57
  • What is DAO?
    • Decentralised Autonomous Organisations - which is computer code through which a set of smart contracts are connected together and function as a governance mechanism.
  • What function had the vulnerability?
    • refund function (the interaction came before effects and so the check didn’t pick up a change in balance when re-entracy attack occurred).
  • Why was the hard fork initiated?
    • to refund all of the victims’ money back.
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#58
  1. What is DAO?

Decentralized Autonomous Organization; was a series of smart contracts intended to mimic a corporate structure on the blockchain

  1. What function had the vulnerability?

the refund function; the hacker used a recursive callback function to continually drain funds before the parent dao could update its balance

  1. Why was the hard fork initiated?

to appease the community & also to avoid regulatory consequences

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#59

  1. What is DAO? the dao was a project which allowed token holders to vote how to manage a group of smart contract with investment purpose and the gains were divided accordingly with the ownership percentage.

  2. What function had the vulnerability?

the split function which was created to allow owners of tokens which were not in agreement with some vote to withdraw their funds and fork a child dao

  1. Why was the hard fork initiated?
    at first a soft fork was considered but after because of security issues an hard fork was implemented because there were two parties: some didn’t want to give the money back to the users which had lost funds because in this way the immutability of the blockchain would be compromised and some wanted to compensate the losses of the users with a refund
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#60

  • What is DAO?
    The acronym DAO in general stands for Decentralized Autonomous Organization. The DAO in specific was a virtual venture capital company governed by the token holders of the DAO token. The organization was launched in 2016 and hacked within less than two months.

  • What function had the vulnerability?
    It was the function that allowed token holders that disagreed with majority decisions to split away from the original DAO into a child DAO and have their funds transferred from the former into the latter.

  • Why was the hard fork initiated?
    The hard fork was created to return the funds to the victims of the attack.

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