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The Weekend Read: July 3

1. This Week in The DAO

It has been difficult for me to keep up with the weekly machinations of The DAO Drama, so I phoned a friend and asked Tim "The Swanny" Swanson for his quick recap on all things DAOy and forks both soft and hard:

Coming together over a soft fork

Coming together over a soft fork

Relative to the previous two weeks, news and developments around The DAO were more subdued.  Oh, who am I kidding!  One of the proposals that has been actively discussed is the "soft fork" model which Ethereum miners have been voting on.  But a vulnerability was subsequently discovered in the "soft fork" and now developers including those at the Ethereum Foundation are telling miners to vote against a "soft fork" (although it should be noted that the Ethereum Foundation itself isn't formally pushing or organizing for any one path forward).  As a result, the two other major options that are being discussed are: (1) a "hard fork" in which transactions involved with The DAO and child DAOs, are isolated and surgically removed (E.g. rolled back); (2) do nothing and let the drained ETH remain in the hands of the attacker.  If (1) is done it may temporarily solve the issue but then it could create a slippery slope precedent for future exploits and governance thereof.

Note: Martin Koeppelmann, an Ethereum developer, has published a detailed FAQ worth checking out.

2. Summer Reading

Speaking of The Swanny, he has recently returned from East Asia and logged this post on The Kimberley Process for cryptocurrencies. (Speaking of Kimberly, no wonder that I went to school with so many (a top 10 name in the 70's) but it has now fallen out of favor to drop to #110...)

Another SWIFT hack report surfaced this week, with Ukrainian and Russian banks targeted and $10m reported to be stolen via the SWIFT network.

Citi released the third report of a series on Bitcoin and blockchain. You can read a review of it in the WSJ (Bitcoin Still Not Ready for Prime Time, Citi Says) and CoinDesk (Citi: Bitcoin is an Opportunity for Banks, Not a Threat) and one can see the POV of each outlet reflected in their choice of title...

Another R3 member bank, Deutsche Bank, has a great two minute video featuring GTB Chief Digital Officer Edward Budd giving an overview of benefits of blockchains not only to banks but clients.

And speaking of R3 members, a warm welcome to Banco Bradesco as our newest member from Latin America.

That's all for this week. For our American friends, have a great Fourth!