Is it Possible to Reverse Transactions on the Ethereum Network?

Once confirmed on the Ethereum Blockchain, cryptocurrency transactions cannot be canceled or reversed. This is because Ethereum was designed to be immutable in the first place. However, the new Ethereum token standards make this somewhat possible.

Immutability means that the information in a dataset cannot be changed. This prevents a centralized authority from manipulating, altering or censoring data, thanks to Blockchain. It is interpreted as a way of approaching decentralized operations. It also ensures data integrity, which is a requirement for building efficient data storage platforms. Since data cannot be changed, new data is simply added to existing ones. The whole process also becomes faster. Since data is permanently stored on the blockchain, transaction histories are open. The disadvantage is that it is impossible to undo a transaction. For example, if you sent your crypto to the wrong wallet address because of a typo or because you fell for a scam, it is impossible to change it. So the financial losses are permanent in this case. However, with the new token standards, this situation has been slightly relaxed. This will be very beneficial for investors.

New Token Standards

First of all, it should be noted that there is no universal method yet. However, proposals using different approaches are helping the market. One approach is rICO, developed by Fabian Vogelsteller. According to it, initial cryptocurrency offerings (ICOs) become reversible. RICO gives cryptocurrency investors the option to reserve cryptocurrencies for a period of time. If buyers change their mind during this time, a new possibility is provided. Accordingly, the tokens can be returned. The reversible ICO can be used as a powerful protection against scams that occur during project launches. However, it does not work to reverse individual transactions. Another approach is to extend existing token standards so that they can handle reversible transactions. Token standards are a set of rules. They are also a blueprint that developers can use to develop new tokens, cryptocurrencies or NFTs. This makes tokens created by different projects compatible with each other and with Ethereum wallets like MetaMask. The most widely used Ethereum token standards are ERC-20 and ERC-721. Developers use ERC-20 to create fungible tokens, or cryptocurrencies. ERC-721 is used to create non-fungible tokens, or NFTs. An example of a token standard extension for irreversible transactions is the ERC721 Refundable Standard, which was introduced to enable refundable NFTs. It was developed by Elie Steinbock, Amir Hagafny and the CryptoFighters team. This new standard grants new rights to NFT buyers. The most important of these rights is the possibility to demand a refund within a certain time frame. Given how prevalent fraudulent projects are in the NFT industry, ERC721R is an important development. Source: nfxhaber.com Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!