451. The Seconomics (Security-Economics) Vulnerabilities of Decentralized Autonomous Organizations
- Author
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Jing Nie, Chan Nam Ngo, Daniele Venturi, Julian Williams, Fabio Massacci, Stajano, F., Anderson, J., Christianson, B., and Matyáš, V.
- Subjects
Seconomics vulnerabilities ,Property (philosophy) ,business.industry ,Computer science ,Computer Science (all) ,020207 software engineering ,02 engineering and technology ,Cryptographic protocol ,Computer security ,computer.software_genre ,Security protocols ,Theoretical Computer Science ,FinTech ,Decentralized Autonomous Organizations ,0202 electrical engineering, electronic engineering, information engineering ,020201 artificial intelligence & image processing ,business ,computer ,Futures contract ,Financial services ,Anonymity - Abstract
Traditionally, security and economics functionalities in IT financial services and protocols (FinTech) have been perceived as separate objectives. We argue that keeping them separate is a bad idea for FinTech “Decentralized Autonomous Organizations” (DAOs). In fact, security and economics are one for DAOs: we show that the failure of a security property, e.g. anonymity, can destroy a DAOs because economic attacks can be tailgated to security attacks. This is illustrated by the examples of “TheDAO” (built on the Ethereum platform) and the DAOed version of a Futures Exchange. We claim that security and economics vulnerabilities, which we named seconomics vulnerabilities, are indeed new “beasts” to be reckoned with.