"Reversible Transactions Could Mitigate Crypto Theft — Researchers"

Researchers at Stanford University have developed a prototype for "reversible transactions" on Ethereum, proposing it as a possible solution to reduce the impact of cryptocurrency theft. Stanford University blockchain researcher Kaili Wang shared an overview of the Ethereum-based reversible token concept, noting that it is not yet a finished concept but rather a proposal to provoke discussion and even better solutions from the blockchain community in light of recent major hack thefts. The ecosystem would be much safer if there were a way to reverse those thefts under such conditions. With the proposed method, reversals are permitted only if approved by a decentralized quorum of judges. The proposed prototype was developed by Stanford blockchain researchers Wang, Dan Boneh, and Qinchen Wang, and it outlines "opt-in token standards that are siblings to ERC-20 and ERC-721," called ERC-20R and ERC-721R. However, Wang clarified that the prototype was not intended to replace ERC-20 tokens or make Ethereum reversible but rather to provide a short time window post-transaction for thefts to be contested and possibly restored. If someone's funds are stolen, they can submit a freeze request to a governance contract under the proposed token standards. This will be followed by a decentralized court of judges voting within a day or two at most to approve or reject the request. Both parties to the transaction would also be able to provide evidence to the judges, giving them enough information to make a fair decision. This article continues to discuss the researchers' proposed "opt-in" token standard that would allow victims to report theft to a governance contract, with algorithms assisting in the identification and freezing of ill-gotten gains.

Cointelegraph reports "Reversible Transactions Could Mitigate Crypto Theft — Researchers"