- Stanford University has made a new proposal to freeze illegal profits from crypto assets.
- The reversible transactions on Ethereum will help in this process.
- The proposal states that the opt-in token standards of ERC-20 and ERC-721 tokens are going to change to ERC-20R and ERC-721R.
To overcome the cyber attacks on digital assets and to recover funds that were mostly stolen in 2021, nearly $14 billion, Stanford University came up with an innovative proposal. Recently, Stanford University conducted a lot of research on how to protect crypto assets from cyber attacks. On September 25, Kaili Wang, one of the researchers, came up with the idea of a “reversible transaction” on Ethereum crypto assets.
“It is just a proposal to provoke decisions and even better solutions from the blockchain community.”
Wang stated that the main aim of the proposal is neither to shift ERC-20 tokens nor to make Ethereum assets reversible; it is about the opt-in standard for storing cyber attack transactions on the web.
“The major hacks we have seen are undeniably thefts with strong evidence. If there was a way to reverse those thefts under such circumstances, our ecosystem would provide a much safer and more secure platform. Our proposal allows reversal only if approved by a decentralized quorum of judges.”
The proposal also included that if a user was hacked and their assets were stolen, then the user could submit an application to the authorities to freeze the crypto assets. On the basis of both sides of the transaction details, the decentralized judges can make a fair decision on seizing the assets. The decision could be taken within one or two days by the judges.
But there is a concern in the proposal that freezing non-fungible tokens (NFTs) are a difficult step because the attackers can shift the stolen assets among various accounts and mix them with other crypto exchanges by using the tool cryptocurrency mixers. To resolve the issue, the researchers at the university came up with the idea to only freeze the “tracing and locking of stolen funds”.
Kaili eth stated that “ The transaction will be frozen for up to three days before it becomes irreversible.”
To combat this continuous increase in attacks on virtual assets, countries like Japan and Switzerland have recently introduced certain types of regulations on crypto assets. Most recently, the United Kingdom added regulations to freeze and recover stolen funds.
Source: https://www.thecoinrepublic.com/2022/09/26/a-new-proposal-for-reversible-ethereum-transactions-by-stanford-university/