Not the Same as the 2016 DAO Attack!

The Bybit hack occurred when a seemingly legitimate transfer from the exchange’s multisig wallet to a warm wallet was executed. However, a malicious code altered the smart contract logic, allowing the hacker to steal the funds. Beiko emphasized that this situation is different from the 2016 DAO exploit and cannot be reversed in the same manner.

During the DAO attack, there was a built-in failsafe mechanism that froze withdrawals for a month, preventing the hacker from cashing out immediately. This gave developers time to intervene and alter the blockchain’s history. However, in the Bybit case, the hacker gained instant access and immediately transferred the funds on-chain.

Is an Ethereum Rollback Possible?

Among those advocating for an Ethereum rollback are BitMEX co-founder Arthur Hayes and Jan3 CEO Samson Mow. Mow stated, “Rolling back the Ethereum chain would prevent North Korea from using these stolen funds to finance its nuclear weapons program.”

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However, Beiko pointed out that the Ethereum ecosystem has evolved significantly since 2016. With DeFi protocols and cross-chain bridges now deeply integrated, rolling back the network would have serious consequences. “This level of intervention would trigger near-intractable ripple effects.”

Yuga Labs Blockchain VP 0xQuit also warned that a rollback could cause losses far exceeding the $1.5 billion stolen. “Thousands of innocent people would lose money, while thousands more would gain money they shouldn’t. Ethereum is now the backbone of DeFi and a primary settlement layer; you can’t just rewind this infrastructure.”

Bybit CEO Ben Zhou took a neutral stance, stating, “This is not an individual decision. Maybe the community should vote on it, but I’m not sure.”

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The post Can the Ethereum Network Be Reversed After the Bybit Hack? appeared first on Coin Engineer.

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It had previously been announced that the Dencun upgrade had goals such as reducing transaction costs on layer-2 networks, preventing self-destruct transactions, and bringing various features such as new bridges and staking pools.

The necessary preparations had been completed for the upgrade to go live, and the upgrade was about to go live. However, a chain split occurred due to the operation being unable to be completed. This delayed the upgrade from going live by four hours.

The goerli fork finalized! https://t.co/LIa3d4Ml5H

After the fix was patched in, the validators came back online and the chain started finalizing again. The MEV circuitbreaker automatically disables and mev-blocks have started flowing through as well.

Yay client diversity! https://t.co/cLz3ZRxnXq

— parithosh | (@parithosh_j) January 17, 2024

Parithosh Jayanthi emphasized that the quick implementation of the solution once again showed the strength of the team’s debugging systems. The developer underlined that the entire process of Fork -> problem -> prioritization -> correction -> termination took four hours and stated that the new debugging system was great.

It is expected that the problem will be fixed and the version will be implemented by the end of the month.

The next stage of Dencun’s test program will be the upgrade that will be carried out on the Sepolia testnet on January 30. The next test will be seen on the Holesky network on February 7. The Ethereum developer team has not yet announced when Dencun will go live on the main network.

The post What Caused the Problem That Emerged in Ethereum? appeared first on Coin Engineer.