As stakeholders in the world’s largest decentralized autonomous organization (DAO) descend into forums to debate its future, concerns are emerging about what the success or failure of The DAO could mean for Ethereum, the blockchain platform that enabled its creation.
Front and center for those invested is the idea that the fate of one of the technology’s most visible projects could create a lasting impression among potential users and the public, and the fears are not without precedent.
While bitcoin continues to face difficulty with regulators and banks, Ethereum has so far been able to build public bridges with the mainstream financial world. Tests were run by 11 banks on a private version of the network in January, and invitations for its creator to help inform the work ongoing at Hyperledger and R3CEV have so far followed suit.
In contrast, bitcoin’s network has secured billions of dollars in funds for years, but its reputation was shaped early on by events like the shutdown of online black market Silk Road , the rapid price fluctuations of its token and the collapse of its once-largest exchange, Mt Gox .
Against this backdrop, those close to the project are beginning to see The DAO as Ethereum’s "flagship application", one that they believe could hold the key to ensuring a lasting, favorable impression for Ethereum’s technology, or scar its reputation.
Stephan Tual founder of Ethereum startup Slock.it which created the code on which The DAO is built told CoinDesk: "You don’t want a bad story about Ethereum. If [The DAO] were to crash, people would compare it to Mt Gox." Reality check
But why is so much riding on The DAO?
A decentralized autonomous organization that lets its members vote on how to fund projects and direct operations, The DAO has so far amassed $160m in consumer funds […]
