There is currently a debate raging among the advocates of Ethereum even as the US SEC has said that the digital currency is not a security. The debate is focused on whether participants should be able to undo faulty or incorrect transactions, and who decides.
A lot of investors, miners, and developers scattered all over the world are looking for a way to sort this out. What ignited this trepidation was a software bug that froze around $150 million of funds in some digital wallets back in November last year.
While the community of Ethereum tries to look for a solution to the frozen funds, the delay has shone the spotlight on the governance of the network.
Ethereum Showing Signs of Comeback after Parity Hack
The value of Ethereum has increase by about 50% over the last twelve months. What is now referred to as Parity hack emanated from a change in multi-signature wallet software that was deployed by Parity Technologies early last year to minimize costs.
The Parity added some functionalities that are common to a lot of smart contracts, such as wallets, in a repository called library. The rewriting of the code led to susceptibilities that were taken advantage of in July 2017, when a cyber-criminal stole about 150,000 ETH tokens.
Also on the 7th of November, there was another hack, and the hacker deleted the library, leaving ETH tokens worth about $150,000,000 locked inside 587 wallets. The value of the digital currency declined by three percent on the day of the hack, but it rapidly recovered due to the bull run in the crypto market, increasing the value of the coin to as high as $1,299 in January this year.
However, the coin has lost about 70 percent of its value from its all-time high, as it is now trading at $446. The Ethereum community, the creator of Ethereum – Vitalik Buterin, and the Ethereum Team as looking for a possible solution to this problem, and the CEO and Co-Founder of Parity – Jutta Steiner said they are working together to find the solution.