Coinbase Co-Founder Cautions Against Ethereum Hard Fork

Digital currency exchange operator Coinbase is weighing in on the ongoing crisis in the ethereum community over the fate of The DAO.

AccessTimeIconJun 21, 2016 at 6:41 p.m. UTC
Updated Sep 11, 2021 at 12:20 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Digital currency exchange operator Coinbase is weighing in on the ongoing crisis with The DAO, the distributed autonomous organization (DAO) that recently saw millions in customer funds seized by an unknown individual or individuals through a code exploitation.

In statements to CoinDesk, Coinbase co-founder Fred Ehrsam said that he would prefer that ethereum’s developers avoid making changes to the blockchain platform’s code that would find them changing protocol rules to rescue customer funds. The comments are notable given Coinbase’s vocal support for the ethereum platform and ether, the native digital currency it added to its GDAX exchange in May.

In remarks, Ehrsam reiterated his past public statements on the issue, but cautioned that the ethereum platform is still in its early stages, and that as such, The DAO should be viewed as both a learning experience and a "reality check".

Ehrsam told CoinDesk:

"We should learn to live with those mistakes because people will write poor smart contracts in the future and we can't fork each time."

In spite of the recent turmoil, Ehrsam said that his view of the strength of the ethereum development community and ether market remains unchanged.

"It shows that it's hard to write secure smart contracts," he said.

The comments come amid a larger debate in the ethereum community on the actions that should be taken to protect customer investments now that The DAO has been compromised.

Options include either a hard or soft fork, the latter of which would find the ethereum protocol being updated so that any spending from a contract associated with The DAO would be deemed invalid.

Alternatively, the development community could pursue a hard fork that would potentially reverse actions taken by the attacker. However, this would come at the cost of the developers over-exercising what some believe is their authority to implement changes on a decentralized network.

Coinbase image via Facebook

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.