{"id":496036,"date":"2022-09-26T07:02:04","date_gmt":"2022-09-26T04:02:04","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/reversible-transactions-could-mitigate-crypto-theft-researchers\/"},"modified":"2022-09-26T07:02:04","modified_gmt":"2022-09-26T04:02:04","slug":"reversible-transactions-could-mitigate-crypto-theft-researchers","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/reversible-transactions-could-mitigate-crypto-theft-researchers\/","title":{"rendered":"# Reversible transactions could mitigate crypto theft \u2014 Researchers"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a278b64072f3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a278b64072f3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/reversible-transactions-could-mitigate-crypto-theft-researchers\/#%E2%80%9D_Reversible_transactions_could_mitigate_crypto_theft_%E2%80%94_Researchers_%E2%80%9C\" >&#8221; Reversible transactions could mitigate crypto theft \u2014 Researchers   &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Reversible_transactions_could_mitigate_crypto_theft_%E2%80%94_Researchers_%E2%80%9C\"><\/span>&#8221; Reversible transactions could mitigate crypto theft \u2014 Researchers   &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvNTA2MzQ3MGYtMzU0Ni00ZGI3LThjOGUtYmM5M2NjOTAyOTQ4LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-6ebd806f>Stanford University researchers have come up with a prototype for \u201creversible transactions\u201d on Ethereum, arguing it could be a solution to reduce the impact of crypto theft. <\/p>\n<p>In a Sept. 25 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/kaili_jenner\/status\/1573727505491673088\">tweet<\/a>, Stanford University blockchain researcher Kaili Wang shared a run down of the Ethereum-based reversible token idea, noting that at this stage it is not a finished concept but more of a \u201cproposal to provoke discussion and even better solutions from the blockchain community,\u201d noting: <\/p>\n<blockquote><p>\u201cThe major hacks we&#8217;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 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roved by a decentralized quorum of judges.\u201d<\/p><\/blockquote>\n<p>The proposal was put together by blockchain researchers from Stanford, including Wang, Dan Boneh, Qinchen Wang, and it outlines \u201copt-in token standards that are siblings to ERC-20 and ERC-721\u201d dubbed ERC-20R and ERC-721R. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Billions in crypto stolen. If we can&#8217;t stop the thefts, can we reduce the harmful effects?<\/p>\n<p>Over recent months, a couple other <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Stanford?ref_src=twsrc%5Etfw\">@Stanford<\/a> researchers and I drew out and prototyped ERC-20R\/721R to support reversible transactions on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw\">#Ethereum<\/a>.<\/p>\n<p>See post &amp; :<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/38Hs0F9goU\">https:\/\/t.co\/38Hs0F9goU<\/a><\/p>\n<p>\u2014 kaili.eth (@kaili_jenner) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/kaili_jenner\/status\/1573727505491673088?ref_src=twsrc%5Etfw\">September 24, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>However, Wang <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/kaili_jenner\/status\/1574208667137744896\">clarified<\/a> that the prototype was not to replace ERC-20 tokens or make Ethereum reversible, explaining that it is an opt-in standard that &#8220;simply allows a short time window post-transaction for thefts to be contested and possibly restored.&#8221;<\/p>\n<p>Under the proposed token standards, if someone has their funds stolen, they can submit a freeze request on the assets to a governance contract. This will then be followed up by a decentralized court of judges that need to quickly vote \u201cwithin a day or two at most\u201d to approve or reject the request. <\/p>\n<p>Both sides of the transaction would also be able to provide evidence to the judges so that they have enough information, in theory, to come to a fair decision. <\/p>\n<p>For NFTs, the process would be relatively straightforward as the judges just need to see \u201cwho currently owns the NFT, and freeze that account.\u201d <\/p>\n<p>However, the proposal admits that freezing fungible tokens is much more complicated, as the thief can split the funds among dozens of accounts, run them through an anonymity mixer or exchange them in other digital assets. <\/p>\n<p>To counter this, the researchers have come up with an algorithm that provides a \u201cdefault freezing process for tracing and locking stolen funds.\u201d <\/p>\n<p>They note that it ensures that enough funds in the thief\u2019s account will be frozen to cover the stolen amount, and the funds will only be frozen if \u201cthere\u2019s a direct flow of transactions from the theft.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Gonna mass-address other comments:<br \/>&#8211; If you think this is an incomplete solution, you&#8217;re entirely correct. Our paper provides some pieces of the puzzle (focuses on the mechanics), but we mention many open questions surrounding decentralized gov. That space needs work.<\/p>\n<p>\u2014 kaili.eth (@kaili_jenner) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/kaili_jenner\/status\/1573935469238403072?ref_src=twsrc%5Etfw\">September 25, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Wang\u2019s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> post generated a lot of discussion, with a mixed bag of people asking further questions, supporting the idea, refuting it or putting forward ideas of their own. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>UK gov&#8217;t introduces bill aimed at empowering authorities&#8217; to &#8216;seize, freeze and recover&#8217; crypto<\/em><\/strong><\/p>\n<p>Prominent Ether (ETH) bull and podcaster Anthony Sassano wasn\u2019t a fan of the proposal, tweeting to his 224,300 followers that \u201cI&#8217;m all for people coming up with new ideas and putting them out into the ether but I&#8217;m not here for TradFi 2.0. Thanks but no thanks\u201d <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I&#8217;m all for people coming up with new ideas and putting them out into the ether but I&#8217;m not here for TradFi 2.0<\/p>\n<p>Thanks but no thanks <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/pdSIB5Ib05\">https:\/\/t.co\/pdSIB5Ib05<\/a><\/p>\n<p>\u2014 sassal.eth  (@sassal0x) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/sassal0x\/status\/1573856159252914177?ref_src=twsrc%5Etfw\">September 25, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Discussing the idea further with people in the comments, Sassano explained that he thinks that reversal control and consumer protections should be placed on the \u201chigher layers\u201d such as exchanges, and companies rather than the base layer (blockchain or tokens), adding:<\/p>\n<blockquote><p>\u201cDoing it at the ERC20\/721 level would basically be doing it at the &#8220;base layer&#8221; which I don&#8217;t think is right. End-user protections can be put in place at higher levels such as the front-ends.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/reversible-transactions-could-mitigate-crypto-theft-researchers\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Reversible transactions could mitigate crypto theft \u2014 Researchers &#8220; Stanford University researchers have come up with a prototype for \u201creversible transactions\u201d on Ethereum, arguing it could be a solution to reduce the impact of crypto theft. In a Sept. 25 tweet, Stanford University blockchain researcher Kaili Wang shared a run down of the Ethereum-based&#8230;<\/p>\n","protected":false},"author":1,"featured_media":496037,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvNTA2MzQ3MGYtMzU0Ni00ZGI3LThjOGUtYmM5M2NjOTAyOTQ4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74932,74891,88698,74892,74880,61514],"class_list":["post-496036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-crimes","tag-ethereum","tag-stanford-university","tag-tokens","tag-transactions","tag-research"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/496036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=496036"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/496036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/496037"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=496036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=496036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=496036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}