Researchers find security flaws in DAO Ethereum

The DAO is a crowdfunded project that works on the Ethereum network, a new crypto-currency network that deals with crypto-currency named Ether.

The DAO is a new version of Wall Street, but for crypto-currencies. While people can exchange Ether as they wish, just like Bitcoin, the DAO works as a separate entity on the Ethereum network, a combination between Kickstarter and Wall Street.

The DAO was set up to allow users to place Ether in a joint fund and buy voting rights. Each person that buys these voting rights receives tokens and can then decide how the DAO uses his assets to make investment deals via applications called smart contracts.

The three researchers are Dino Mark, Founder of Smartwallet, Emin Gün Sirer, a professor at Cornell University, and Vlad Zamfir, a researcher with the Ethereum Foundation itself.