Kaili Wang noted the Ethereum-based reversible token idea is only a proposal to spark discussions and better solutions. A victim of a cryptocurrency theft would submit an asset freeze request for decentralized judges to approve or reject within two days.
A group of researchers at Stanford University created a prototype to reverse transactions on the Ethereum network. They argued that it could help reduce the impact of the theft of cryptocurrencies.
Kaili Wang, a blockchain researcher at Stanford University, recently shared the Ethereum-based reversible token idea. However, she noted it is not yet a finite concept but a proposal to spark discussions and better solutions.
Kaili Wang Says Decentralized Judges Would Allow Asset Freeze Requests
Wang pointed out that they have seen robberies with clear evidence as the primary attacks. The researcher said that the ecosystem would be safer if there were a way to reverse that crime. She explained their proposal would allow revocations only if decentralized judges approved them.
The proposal, outlined by researchers Kaili Wang, Dan Boneh, and Qinchen Wang, describes new token standards called ERC-20R and ERC-721R. However, Wang clarified that the prototype did not aim to replace ERC-20 tokens or make Ethereum reversible. She pointed out that this standard subscription only allows disputing and possibly restoring the funds shortly after the theft.
According to Wang, a victim of a cryptocurrency theft could submit an asset freeze request to a governance agreement under the proposed token standards. After that, a decentralized court of judges would have to vote within one or two days to approve or reject the appeal.
Both parties might provide evidence for the judges to make a fair decision based on enough information.
Concerning non-fungible tokens, the judges would only need to see who owns the NFT to block the account, making the process easier.
However, freezing fungible tokens under this proposal is more complicated, as the thieves might split the funds between many accounts. They would manage them through anonymity mixers or exchange them for other crypto assets.
Considering that possibility, the researchers created an algorithm to provide a default freezing process to track and block stolen funds. They stated that it ensures enough funds would remain frozen in the account to cover the stolen amount.
Anthony Sassano Thinks Reversals Should Occur at the Level of Exchanges
Many people asked questions, supported the idea, refuted it, or came up with more proposals after Wang shared the above information.
Anthony Sassano, a famous Ether (ETH) bull, did not like the proposal. He told his many Twitter followers that he supported people with new ideas to help Ether but did not see any.
Sassano believes reversal control and consumer protection should be at the level of exchanges and businesses, not blockchains or tokens. He added that doing it at the ERC20/721 level would mean doing it at the base level, which he considers wrong. He concluded that the implementation of end-user protection could occur at higher levels like front-ends.
Meanwhile, Ether is trading at around USD 1,309 and has accumulated a 1.4% loss over the last 24 hours. While its daily trading volume is above USD 13.68 billion, its market capitalization is about USD 365.23 billion, according to CoinGecko.
By Alexander Salazar
