Stanford Researchers Propose a Prototype for “Reversible Ethereum Transactions” to Mitigate Crypto Theft
Stanford Researchers Propose a Prototype for “Reversible Ethereum Transactions” to Mitigate Crypto Theft.
In an attempt to reduce the impact of crypto theft, Stanford University researchers have proposed a prototype for “reversible transactions” on Ethereum.
Still Not a Finished Concept But a Proposal to Provoke Discussion
Kaili Wang, a Stanford University blockchain researcher, shared an explanation of the Ethereum-based reversible token idea in a tweet on Sept. 25, noting that it is not a finished concept, but rather a “proposal to provoke discussion and even better solutions from the blockchain community.” saying:
“The major hacks we’ve seen are undeniably thefts with strong evidence. If there was a way to reverse those thefts under such circumstances, our ecosystem would be much safer. Our proposal allows reversals only if approved by a decentralized quorum of judges.”
Billions in crypto stolen. If we can't stop the thefts, can we reduce the harmful effects?
Over recent months, a couple other @Stanford researchers and I drew out and prototyped ERC-20R/721R to support reversible transactions on #Ethereum.
See post & 🧵:https://t.co/38Hs0F9goU
— kaili.eth (@kaili_jenner) September 24, 2022
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It is put together by Stanford blockchain researchers Wang, Dan Boneh, and Qinchen Wang, and it proposes “opt-in token standards that are siblings to ERC-20 and ERC-721” dubbed ERC-20R and ERC-721R.
“Billions in crypto stolen. If we can’t stop the thefts, can we reduce the harmful effects?. Over recent months, a couple other @Stanford researchers and I drew out and prototyped ERC-20R/721R to support reversible transactions on #Ethereum,” tweeted Kaili.
Billions in crypto stolen. If we can't stop the thefts, can we reduce the harmful effects?
Over recent months, a couple other @Stanford researchers and I drew out and prototyped ERC-20R/721R to support reversible transactions on #Ethereum.
See post & 🧵:https://t.co/38Hs0F9goU
— kaili.eth (@kaili_jenner) September 24, 2022
The Prototype Doesn’t Make Ethereum Reversible
In his explanation of the prototype, Wang clarified that it is not intended to replace ERC-20 tokens or make Ethereum reversible; rather, it is an opt-in standard that gives thieves a short window to contest and restore thefts.
Those whose funds have been stolen can submit a freeze request to a governance contract if they suspect their funds have been stolen.
After this, a decentralized court will vote “within a day or two at most” on whether to approve or reject the request.
Related: Ethereum Co-founder Says Centralization is Still The Biggest issues in Crypto Industry
Furthermore, both parties could provide evidence to the judges, so they would have enough information in theory to make an informed decision.
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