A few years from now, we will look back on the 9th day of July 2018 and view it as one of the most tragic days in the history of Ethereum. This is a day that comes second to the 2016 splitting of Ethereum Classic and Ethereum. On this fateful day, a decentralized exchange known as Bancor was hacked, and this led to its investors losing more than 23.5 million dollars.
From that day, Ethereum has continued to decline steadily, despite the fact that it had risen to a high of $503 per coin on 17th July. This is an indication that investors have slowly started to lose faith in the smart contracts systems used on the blockchain. It is a fact that raises important questions such as whether the crypto is truly decentralized.
Some investors have also started questioning whether its systems are sturdy enough to protect them from bugs and hackers. Andreas Antonopoulos, a cryptocurrency guru, had a few words to say about this particular situation.
Have Smart Contracts Developers become the New Middle Men?
In a question and answer session that was posted online, Andreas refutes this claim, insisting that the smart contract developers are in no way the new middlemen in the Ethereum universe. He states that developers can build both decentralized and centralized platforms, and then leave it to their users to determine which ones are the best.
He goes on to state that if a person was to choose to enter into a faulty smart contract, then they are the ones to blame. The statement is true as consumers are required to read the fine print before signing any smart contract.
A critical look at some of the biggest scams in history shows that such scams have only succeeded because the people who got scammed entered into a transaction without taking the time to go through the fine print.
The good news, however, is that investors have started becoming smarter. Today, they are taking their time to research an ICO, and are as such, not willing to accept the old bug card story any longer. Instead, they have come to believe that companies such as DAO or Bancor were interested in stealing from them from the very beginning.
Whether there is any truth to these claims is a fact that we may never get to know. Although the smart contracts developers are not the Ethereum gatekeepers, not all of them can be trusted.
Smart Contracts Have Placed People at the Developer’s Mercy
One of the main issues that most investors raised from the Bancor hack was that, although the money was stolen from their wallet, the money still belonged to the investors. And the fact that Bancor will not in any way be held liable for the loss of the $23.5 million seemed to incense them even more. If it was a traditional bank, any client money lost through a hack would eventually be refunded.