#Cleanapp scripts review code#
It is my understanding that the DAO code contains this feature to promote decentralization and encourage the creation of “child DAOs”.įinally, the interpretation of the creators and the funders of the contract, as backed by the Ethereum foundation, won over that of the so-called hacker: the transaction was rolled back.² This was a controversial decision leading to a part of the network breaking off to create their own blockchain where the transaction was not rolled back. I have made use of this feature and have rightfully claimed 3,641,694 ether, and would like to thank the DAO for this reward. I have carefully examined the code of The DAO and decided to participate after finding the feature where splitting is rewarded with additional ether. There is an open letter claiming to be from the “hacker”, where his interpretation of the contract was described: The code, devoid of human interpretation, was executed correctly by the computing machines. They claimed it to be a “hack”, thereby demanding that it be rolled back or blacklisted.īut for the “unexpected” transaction to have been executed in the first place, it had to get approved by the majority of the network as is the case with all programs in a blockchain. It was beyond the expectations of the creators and the funders of the contract. On June 17, 2016, someone was able to draw out a sizeable portion of the fund in a highly unexpected way.
It was basically a decentralized crowdfunding application, as conceived in May 2016. Now, let’s consider one of the most pivotal smart contracts in the Ethereum blockchain, The Decentralized Autonomous Organization, or The DAO. If most of the computers approve that it is so, the program is executed without needing the parties to do anything. Crowdfunding Contract - “Transfer a part of the fund to a project owner” only if ”the supermajority of backers have approved to do so”.Ī network of computers periodically checks whether the conditions of any of these programs are ripe for execution.Fish Sales Contract - “Allow this fish to be sold” only if “it is an organic and fair trade in the supply chain”.Car Sales Contract - “Transfer the title of the car” only if “the asked amount has been paid”.Smart contracts are self-executing programs that run on blockchains and accept digital signatures to record the agreement between stakeholders.
Imagine contracts written in computer code that are executed automatically under the conditions set in the contract. This is unlike the computer code that executes the same way for the same set of inputs on the same kind of computer.Ĭode is objective, human language is not. But legal texts mean different things to different people,¹ thereby leaving room for the parties to act on it in their own way. Let us start by outlining several premises and intuitions.Ĭontracts aim to secure us from counterparty risks.