What is a Decentralized Exchange after the Bancor Hack?

14 million USD in ETH stolen from decentralized exchange Bancor

How are they able to call themselves decentralized if it all of their ETH funds were apparently sitting in one wallet?

What is a decentralized exchange? I’m confused?

I guess it was locked in some kind of a ETH smart contract (which tend to be insecure as far as I can see).

Hopefully no single entity had access to those funds so technically it was decentralized in that sense. It was a badly written code though and everyone was forced to use it, so they didn’t get the security benefits of decentralization.

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I think I understand. Those ETH contracts must be a devil to write. They keep breaking!

The only single entity that has access to all of the funds is the hacker!!!

There is always a possibility that they left the code vulnerable on purpose and exploited it later as a an exit strategy.

True. Bancor raised 150 million in ICO money. The largest ICO ever, at the time. Of course, that has been eclipsed many times over by telegram, eos and others that I don’t have the time or inclination to follow or care about.

I wonder if their codebase was reviewable… AND if anybody actually reviewed it?

Well, I suppose the “hacker” reviewed it carefully enough.

It’s a bit unbelievable to use the name Bancor for something presented as “decentralized” !

The objective of Bancor was super-centralisation.

Dissonance from the very beginning.

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