Researchers claim that this could be a solution to reduce the consequences of the theft of cryptocurrencies
Stanford University designed and prototyped ERC-20R and ERC-721R tokens to support reversible Ethereum transactions, blockchain researcher Kylie Wang wrote in a blog post. She and her colleagues, Dan Bone and Qingchen Wang, have been working for several months on new standard tokens, which allow for a short time (up to 3 days) after a transaction to challenge it and, possibly, restore the status quo.
Under the proposal, if funds are stolen from a user, they can submit a request to freeze those assets. The decentralized court will then approve or reject the request. Both parties to a transaction can provide evidence for judges to make a fair decision.
In the event of NFT being stolen, the process will be simple as judges will have the ability to block the account of whoever currently owns the NFT. With regard to cryptocurrencies, the ability of an attacker to separate assets and pass them through mixing services complicates the process of transaction reversibility.
To prevent this, the researchers developed an algorithm that provides a “default freeze process for tracking and blocking stolen funds.” They note that this ensures that sufficient funds are blocked to cover the stolen amount.
The development is currently under discussion. The researchers claim that it can be a solution to reduce the consequences of numerous thefts of cryptocurrencies. They lead the discussion and accept additional proposals from the blockchain communities.
In just three summer months, as a result of hacks, hackers stole more than $446 million worth of cryptocurrencies. In August, the loss from 18 attacks on crypto projects amounted to $208.5 million. attacks, $227.76 million was stolen.