Example of why PoS block chains can't be trusted to not violate the protocol and bailout themselves (leading to corruption and fighting over who controls the resource):
In the security announcement CEO of Steemit Ned Scott said:
User accounts and wallets are not at risk, and we hope to soon reactivate the Steemit website to normal order. Any users whose accounts were compromised will be completely reimbursed.
Then just like Ethereum, Steem is not a trustless, permissionless, decentralized block chain. But this is expected, because all
PoS block chains must be centralized with checkpoints and thus are under top-down control.
Steem is a
corporate controlled block chain, which is the antithesis of why we created block chains to remove us from
the certain failure of democracy and governance. We need block chains to be immutable and changable by no one after they are launched. I'll be trying to demonstrate a new design for a block chain which has this immutable property (even more so than Satoshi's original design).
Second hack
may be underway:
Hopefully the same hacker who drained the DAO is going to put an end to this Streemit retarded shit as well.
May only be a GUI/frontend bug:
Bitshares dude claims maintenance is due to hacker stealing more funds, so there is a second hack:
some accounts did not change their passwords, besides the billion warnings posted all day. the hacker cleaned those leftovers today.
steemit.com is now in maintenance mode
Don't you love this corporate run block chain shit.
Why are the fucking passwords (and private keys for signing transactions) stored any where except on the user's private wallet on the user's computer. Probably because they wanted the system to be easy to login from any computer the user might change to. So probably they have a process where you can take control of your private key if you are sophisticated enough. But this is what happens when you make a way for users to earn and hold $1000s and give them a default private key mgmt that stores it on the corporate server. Another reason that their retarded quadratic skewing of payouts in order to make all users jealous and irrational, has another bad effect that it weakens security.