Ethereum community split over reversible transactions proposal
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The Ethereum community has expressed widely differing opinions on whether implementing reversible transactions is a step forward.
An important part of cryptocurrencies is the irreversibility of transactions. While proponents of reversible transactions point to improved security, opponents argue that under this proposal, Ethereum mirrors the banking system it claims to oppose.
Stanford University researchers implement reversible Ethereum transactions
On September 24th @kalli_jennerStandford Blockchain Researcher, tweeted about the benefits of reversible Ethereum transactions and said the concept could mitigate the harm caused by theft.
He spoke of a “quorum of judges” to monitor and approve withdrawal requests, which he believes would make the ecosystem much safer.
In this system, victims report stolen funds and request that they be frozen. A freeze means funds cannot be transferred out of their current address.
Judges will decide based on preliminary evidence whether or not to freeze the funds. In the case of the former, the next step involves a trial where both parties present evidence to support their respective cases.
At the heart of this proposal are the new ERC-20R and ERC-721R token standards, which work with a governance agreement to implement the will of the majority of judges.
@kalli_jenner mentioned that the above is a first working model and is asking for community feedback to improve the proposal.
The ETH community is divided
In support of reversible transactions, the co-founder of Azra Games, @tjboudreaux, said the concept makes sense because it promotes certainty with blockchain users. However, he urged to investigate the management model in more detail to ensure that the most appropriate one is used.
Fading around undoable transactions.
How many of you with an empty wallet would ever risk your mortgage being on the chain after that?
More governance and security models need to be explored if we are ever going to see certain asset classes on the chain.
— tjboudreaux.eth (5555) (@tjboudreaux) 25 September 2022
However, many people have expressed concern, especially since Ethereum’s centralization and censorship issues have come to the fore with the recent Proof-of-stake transition and the Tornado Cash crisis.
@MonetSupply implicit reversible transactions would blur the lines between cryptocurrency and the banking system, adding that the process “fundamentally breaks” DeFi’s advantages, such as fast settlement and features such as atomic swaps.
Hammering home the focus/control point, @griffds linked Ethereum to the World Economic Forum and hinted at a secret connection between the two.
On more concrete matters, @FatManTerra expressed concern about the “decentralized justice system” model, arguing that they are prone to corruption and manipulation by founders and early adopters.