How Will Cardano handle a situation where there are Lost funds due to an app being built on it?


#1

Cardano being the protocol, in a case where a DAPP is built on its layer, if Funds are lost (ex: etheruem with the DAO attack, and even recently with NANO requesting to alter their ledger to recover funds) How will the cardano protocol respond to these situations if they occur?


#2

Two words, Ethereum Classic.


#3

Issues like the DAO hacked will be mitigated by the separation of the Cardano settlement layer from the Cardano computational layer. It’s explained here: https://youtu.be/04D2BP33YI8?t=613

Basically if you put your money in a shitty DAPP and it gets stolen, you’re still out the money. But everyone else who didn’t invest in that app is protected. A hacker can’t bring more funds back to the settlement layer than originally left it to invest in that particular sidechain.

As far as exchange hacks go, I think you’re essentially on your own or at the mercy of the exchange deciding to issue a refund. Charles has been pretty clear that he’s morally opposed to blacklisting the accounts where the hacked money was sent or bailing people out.

The philosophy seems to be: you won’t be hurt by other people’s poor choices, but ultimately if you make a poor decision it falls on you.