Ethereum’s Ethscriptions protocol, enabling users to create and share digital objects, faces a major setback. On Twitter, Tom Lehman, the creator, and co-founder of Genius.com, disclosed that the main Ethscriptions marketplace had experienced a hack, resulting in the theft of 202 Ethscriptions. The recent computer exploit targeting Ethscriptions.com marketplace has frustrated users who invested significant amounts of money.
Ethscriptions: Non-Financial Assets on Ethereum
The Ethscriptions are non-financial assets, defined as Ethereum transaction call data, which allows for digital information to be written in the main blockchain. However, this makes them distinct from traditional non-fungible tokens (NFTs) that are issued on the Ethereum network via smart contracts, as with the ERC-721 token standard. The Ethscriptions protocol gained massive engagement with nearly 30,000 created within 18 hours of its June 2021 launch.
Early adopters eagerly embraced the protocol, investing significant sums to write their inscriptions in the ledger. Lehman expressed sorrow over the theft of “Ethscription #56,” emphasizing its rarity and historical significance. OpenSea data shows Ethscriptions sold for up to 5 Ethereum ($9,600) in the past month.
Responsibility Taken: Lehman and Hirsch Admit Smart Contract Exploit
Lehman and Hirsch took responsibility, acknowledging their smart contract as the source of the exploit. A code snippet enabled the unauthorized withdrawal of Ethscriptions from the marketplace, causing the issue. Moreover, he admitted the situation was “all terrible” and acknowledged negligence, emphasizing the need for more strategic contract use.
A warning remains on Ethscriptions.com, where a disclaimer clearly reads “There is an issue with the marketplace contract! Withdraw your Ethscriptions and do not create new listings!”. Moreover, the total number of Ethscriptions created is 474,000, as per the Dune Analytics dashboard data.
The hack is a stark reminder of the risks in cryptocurrencies, as even promising protocols can face unexpected setbacks. Ethscriptions’ future remains uncertain, but their popularity has unquestionably piqued interest in the Ethereum blockchain. The popularity of Ethscriptions is likely to lead to more Ethereum users exploring the protocol in the coming months. Lastly, as the concept gains traction, its impact on the Ethereum ecosystem will become more apparent.
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