Abstract:
The DAO hack of June 2016, a pivotal event in the blockchain and Ethereum community, exposed critical vulnerabilities in the nascent field of decentralized autonomous organizations and smart contracts. This case study examines the layered approach to blockchain design as a response to the challenges highlighted by the DAO hack. Drawing parallels with the Internet’s layered architecture, it proposes a structured framework for blockchain technology, encompassing five distinct layers: Consensus, Mining, Propagation, Semantic, and Application. Each layer addresses specific aspects of blockchain functionality, such as security, liveness, stability, and correctness, thereby allowing for more robust and adaptable systems.
Key to this approach is the separation of the blockchain into multiple layers, akin to the stratification observed in Internet protocol design. This separation enables a more profound understanding of blockchain mechanics and facilitates targeted enhancements in each domain. Additionally, the case study explores the positioning of cryptocurrency within these layers, advocating for a dual-system approach where mining and user coins exist separately, enhancing security and economic flexibility.
The DAO hack, while a setback, acted as a catalyst for critical introspection and innovation within the blockchain community. This case study highlights the importance of a methodical, layered approach in the development of blockchain technologies, emphasizing that understanding and refining the foundational layers are prerequisites to building complex, higher-level applications. Through this structured approach, the case study aims to contribute to the evolution of blockchain as a secure, stable, and scalable technology, offering lessons and strategies for future blockchain developments.
Our Trading helps clients run and transform their front, middle and back-office trading operations. We provide buy-side, sell-side and market infrastructure firms with a full-service offering, including systems integration and technology consulting services, to assist in delivering high performance trading and settlement capabilities across all asset classes. This includes strategy, architecture design, operating model work, process improvement, systems building and trading package integration as well as application management, application outsourcing and business process outsourcing.
Our Trading helps clients run and transform their front, middle and back-office trading operations. We provide buy-side, sell-side and market infrastructure firms with a full-service offering, including systems integration and technology consulting services, to assist in delivering high performance trading and settlement capabilities across all asset classes.
Our Trading helps clients run and transform their front, middle and back-office trading operations. We provide buy-side, sell-side and market infrastructure firms with a full-service offering, including systems integration and technology consulting services, to assist in delivering high performance trading and settlement capabilities across all asset classes.
These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middleman or counterparty risk.
Create a tradeable digital token that can be used as a currency, a representation of an asset, a virtual share, a proof of membership or anything at all. These tokens use a standard coin API so your contract will be automatically compatible with any wallet, other contract or exchange also using this standard. The total amount of tokens in circulation can be set to a simple fixed amount or fluctuate based on any programmed ruleset. By combining our proprietary smart contracts with blockchain technology and providing these tools to everyone.
Create a tradeable digital token that can be used as a currency, a representation of an asset, a virtual share, a proof of membership or anything at all. These tokens use a standard coin API so your contract will be automatically compatible with any wallet, other contract or exchange also using this standard. The total amount of tokens in circulation can be set to a simple fixed amount or fluctuate based on any programmed ruleset. By combining our proprietary smart contracts with blockchain technology and providing these tools to everyone.
