20 / DAO vote hacking

In episode 20, we discuss the recent Beanstalk hack, where vote buying was used to steal over $182 million from the DAO. We also delve into the security of bridges and the ratio of assets under management versus the size of the army watching the vault. Additionally, we examine the iron triangle of decentralized, scalable and secure systems, and why PoS is more centralized than PoW.

Timeline

02:12 What is the largest DAO?

03:11 Analysis of congress applies to DAOs / Beanstalk hack

07:59 Is PoS is more centralized than PoW?

09:15 The cost to make a long-running fork of Ethereum PoW

11:43 Why Ethereum PoS is centralized

14:33 What is the blockchain trilemma?

15:09 Fragging and the blockchain trilemma

15:25 The fundamental scalability trilemma problem of blockchain is the speed of light

23:13 Is solar powered Bitcoin farming good?

23:56 Why are bridges and Tether insecure?

Participants

Episode notes

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The Beanstalk hack was done with vote buying, those are YOUR staked tokens
- https://www.theverge.com/2022/4/18/23030754/beanstalk-cryptocurrency-hack-182-million-dao-voting
- Vote arbitrage on DAOs: “A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury.”
Security of bridges is related to the ratio of assets under management versus the size of the army watching the vault
Iron triangle – decentralized/scalable/secure
Why POS is more centralized than POW
- https://github.com/ethereum/ethereum-org/issues/841