Steemit why did not the second DAO

30 July Steemit, the social network on the blockchain, was hacking. However, immediately after that, the rate of its cryptocurrency has grown considerably and has achieved one of the highest marks. CoinFox trying to find the cause.

While the publishing platform is gaining popularity outside of the crypto community, the cryptocurrency steem's market capitalisation has reached third place after BTC and ETH. July 20, almost a week after the attack, she rose to a high of $4.32, the leaving behind the previous record, which happened on the eve of the attack on July 13. Moreover, according to steemle.com July 13 one day was created by a record number of accounts on the platform created 2790 people. The attack led to a sharp decline in the number of new registrations, but even so, 19 July Steemit appeared 1353 new user.

Thus, despite the fact that two weeks ago was 260 accounts compromised and stolen Steem-dollars and tokens steem worth almost $85 000, here at the platform now, things are good. In this article we will try to understand the situation around the most notable of the July attack.

Back to Steemit 101

In a research article published in early July, CoinFox referred to the e-book "Steemit 101: How to make money and to enjoy the social network that pays YOU for what you post content and vote", written by the four most active user of this platform for publications. Then we noticed a strong sense of community and a utopian pathos:

"Imagine a social network that rewards people, not greedy shareholders. ...Steemit supervised ONLY by members of the community. There is no policy. No big Corporation or government is definitely not making the decisions. ...We still believe in a free and open marketplace of ideas. We believe that when different opinions give the opportunity to compete, more and more people learn about these issues and points of view. Everyone has a chance to discuss and argue about ideas. May the best man win idea and let everyone treat each other with respect and understanding."

In fact, Steemit still works in beta, but the pioneers are not only growing, but also becoming more committed to make the platform successful and stable. However, when July 14, began hacking and community Steemit first encountered serious difficulties, no one knew how this will end. Whether people are in a panic to sell their assets, thus simplifying the development of events in the direction of dumping? Maybe they will walk off the platform and just giving up? Or stay and continue to fight?

Before it itself was hacked, leading the user Steemit and co-author of @stellabelle in his post criticized the fact that "aggressive statements and allegations made by the victim and psychopathy in the comments" has become increasingly common. Here is what she wrote:

"Then came the hacker and started to extort money from turning our dreams became a reality the community in the short-lived "vortex of death". However, many of us have declared that are happy to buy any sell in a panic tokens Steem, because we are committed to the dream Steemit. For example, I would have bought more Steem, if the price began to fall. Steem dream is now a reality that I never want to lose."

After was skomprometirovana her account, @stellabelle shared their experience of losing control of the profile and means:

"I responsibly declare, I'm terrified that my account was hacked. I will not lie. I understand that my funds will be returned, but still feel vulnerable."

Some users have had to wait a few days to restore your access, and someone just decided to create new profiles. User @pinkisland whose initial profile @qamarpinkpanda was hacked, expressed his feelings in connection with the attack:

"After a hacker attack I was no longer able to log in to your account. Yeah, I was a bit sad and scared, but I already knew that the team Steemit will be able to get our accounts in the form in which they were. Thanks for the great work being done by the team. I from the day following all the posts and communication. When I'm going to vote again, I remind myself that now I actually won't be able to contribute. I feel a bit lonely, because I was happy to be here every day."

Discard feelings, focus on security

A few days later came the explanation of what a DDoS attack on Steemit was not focused neither on the blockchain Steem or its servers:

"As mentioned by some of our users, Steem blockchain was not hacked. And our server was hacked. Instead, hackers exploited a browser vulnerability, but this danger can threaten any company from the Fortune 500 list. We fixed the issue and now working on a new solution with multi-factor authentication, which will protect from such attacks in the future."

Thus, even those users who are unable to login to their accounts, could see all transactions in the blockchain Steem using the tool for monitoring steemd.com. This has prompted some users, for example, @redexi, offer to "make the whole online Steemit.com available on GitHub to allow the community to back the UK, is this idea in the adjacent comments supported the main platform developer Dan Larimer.

As a result of hacking the developers Steemit reviewed the security of the blockchain and came up with a new way of protecting user accounts. In two consecutive posts Dan Larimer, the original account which is @dantheman also under attack, told about the problems of cryptobatrachus and confirmation of identification. In this regard, he stressed that the private keys used to authenticate transactions on the blockchain is not ID. "It's just evidence. Disputes can still arise if two people have access to one private key. Larimer also noted the important role of the community in cases of security breaches, as previously with The DAO and now with Steemit:

"For example, the "hard fork" The DAO, Bitcoin Steem and we have seen that in the case of a bug, exploit or stolen, the community can and will take action to restore justice".

Social networking is a new way of confirmation social confirmation. We know who they are, and mostly know when someone was hacked. Unlike money, posts and voice, created by a hacker, often inconsistent in character with the owner. And it makes clear to all users of the social network that the violation occurred".

Larimer also concluded that "social media is the key to the security of the blockchain:

"Social platform is the best and easiest way to gather all your friends and family members online, so they can protect your account. It's like friends with Facebook, just as it should and pumped up. Friends who you trust most and your family members become a source of your identity and their collective word (active key) protects your identity and account.

July 17, Larimer suggested that the decision to restore the account, which introduces the concept of "Trustee" or "someone who can identify you regardless of the key. In fact, the new system restore is recreating in digital form the secular Institute of the guarantors, once a crucial element of social life.

Cohesion

It seems that the key to success Steemit and steem, even in the face hacker attacks, it is their philosophy and their community. According to user @senseiteekay, "we got hacked, used, and disoriented for some time, but no one really cares. Why? Because this website is too good to die!"

Alex Fortin, the author of the Business podcast To Freedom, on his YouTube channel have expressed the same opinion. Informing about the attack, Fortin noted that he expected that the cost steem will fall due to the attack, but "quite the opposite happened, the price started to rise... I believe people were just so confident in their abilities. I think it's the defense, it's a vote of confidence in the platform, the developer community... It makes me even more believe in the future potential and growth of the platform.

Users Steemit fully support the project, but it sounds critical. On the first day of the attack, July 14, the founder of another social network based on the blockchain and bitcoin, and also providing for remuneration for publication, Yours, Ryan Charles, published an article in which he argued that "Steem will not be able to hold out."

"The burden of creating not only a community and technical platform, but also innovative cryptosystem and the related economy, is very large. Security issues and scaling their blockchain is engaged in a small group incentivising experts, so the decisions will be slower. Companies and services such as wallets and exchanges, there will be less and with less number of elements. And when they face the issues of legal regulation, they will have fewer allies."

Interestingly, in the Annex to the article, Charles mentions his previous post where he explained why Yours uses no ether, and bitcoin. Recalling then breaking into The DAO, he noted that "my article happened to be relevant, but it confirms our position. Like any good scientific theory, the theory of bitcoin is not yet proven and may never be proven, but to this day, it withstands all attacks".

One thing is certain: his criticism Steemit and its cryptocurrency, published exactly on the day of the attack on Steemit was also very relevant. However, regardless of the criticism of Charles, Steemit really creates a new phenomenon in platform, which rewards publication, namely the emphasis on creating community and involving its members. While this community may seem naive and overly enthusiastic. However, we look forward to when it's matured and will continue to surprise us.