Thanks for your concern for the Sovrin network. I believe healthy scepticism is vital to keeping a system secure.
A couple of your points I would like to respond to:
Remember when Bitcoin said it could never be hacked because it was built on a distributed ledger? That was $70 Million dollars ago as of last week.
No one credible should have ever said that bitcoin is unhackable. The cryptographic algorithms and protocols of the system have yet to be broken, which means that as it stands the bitcoin system is still considered to be secure. However, this does not mean that bitcion impossible to break.
CNN is reporting the hack of a company called NiceHash, not Bitcoin itself. From the CNN article:
The hackers appear to have entered the NiceHash system using the credentials of one of the company’s engineers.
A company built on top of bitcoin was hacked not bitcoin itself.
Remember when Sovrin said it could never be hacked or compromised?
No, I actually don’t. Whoever said that misunderstood the difference between “unhackability” and security. Like bitcoin, the algorithms, protocols, and cryptography used by the Sovrin network have not been broken and are still publicly considered to be secure. Does that mean that the systems are truly unhackable? No, that would mean solving the P vs NP problem.
They are no more or less secure than some contact database sitting behind a corporate firewall. Why? Because humans are involved.
This is partially correct: humans are generally the weakest part in the security chain. However, a distributed ledger actually alleviates a lot of the problems with humans in comparison to a centralized service, like replacing passwords with cryptographic keys.
@danielh offers a good response to this part of your post too ^^
Trust Networks are great…until someone in the Network can no longer be trusted.
The Sovrin network was built with the knowledge and preparation for malicious nodes and activity. It is actually built to be resistant to multiple malicious actors in the system. To find more about how the Sovrin network does this, see here.