USDC Stablecoin Issuer Circle Examines ‘Reversible’ Blockchain Transactions
The post USDC Stablecoin Issuer Circle Examines ‘Reversible’ Blockchain Transactions appeared on BitcoinEthereumNews.com. Update, Sept. 25, 9:52 am UTC: This article has been updated to include comments from Andrei Grachev, founding partner at synthetic dollar protocol Falcon Finance. Circle, the world’s second-largest stablecoin issuer, is reportedly examining reversible transactions to help recover funds from fraud and hacks, which appears to counter one of crypto’s founding principles: That transactions are final and beyond centralized control. Circle president Heath Tarbert told the Financial Times on Thursday that the company is examining mechanisms that could allow transactions to be rolled back in cases of fraud or hacks, while still maintaining settlement finality. “We are thinking through [. . .] whether or not there’s the possibility of reversibility of transactions, right, but at the same time, we want settlement finality,” Tarbert told the FT. “So there’s an inherent tension there between being able to transfer something immediately, but having it be irrevocable […].” Clash with crypto ethos Supporters of reversibility argue it could help scam victims and bolster mainstream trust in stablecoins. Still, the idea challenges the decentralized model that underpins crypto, where transactions are permanent and immune from unilateral changes by issuers or validators. Cointelegraph has asked Circle for comment on the details of transaction reversibility and the parameters that would be used to decide on reversals. Related: Ethereum bulls tout supercycle, but Wall Street is skeptical Despite the centralization risks, transaction reversibility proved useful when decentralized exchange Cetus was exploited for over $220 million worth of digital assets on May 22, of which validators managed to freeze $162 million. A week later, Sui validators approved a governance proposal to return the frozen $162 million to Cetus. The Sui community passed a vote for frozen Cetus funds. Source: Sui While some decentralization advocates criticized validators’ ability to freeze the funds, other industry watchers praised the rapid response as a step…
The post USDC Stablecoin Issuer Circle Examines ‘Reversible’ Blockchain Transactions appeared on BitcoinEthereumNews.com.
Update, Sept. 25, 9:52 am UTC: This article has been updated to include comments from Andrei Grachev, founding partner at synthetic dollar protocol Falcon Finance. Circle, the world’s second-largest stablecoin issuer, is reportedly examining reversible transactions to help recover funds from fraud and hacks, which appears to counter one of crypto’s founding principles: That transactions are final and beyond centralized control. Circle president Heath Tarbert told the Financial Times on Thursday that the company is examining mechanisms that could allow transactions to be rolled back in cases of fraud or hacks, while still maintaining settlement finality. “We are thinking through [. . .] whether or not there’s the possibility of reversibility of transactions, right, but at the same time, we want settlement finality,” Tarbert told the FT. “So there’s an inherent tension there between being able to transfer something immediately, but having it be irrevocable […].” Clash with crypto ethos Supporters of reversibility argue it could help scam victims and bolster mainstream trust in stablecoins. Still, the idea challenges the decentralized model that underpins crypto, where transactions are permanent and immune from unilateral changes by issuers or validators. Cointelegraph has asked Circle for comment on the details of transaction reversibility and the parameters that would be used to decide on reversals. Related: Ethereum bulls tout supercycle, but Wall Street is skeptical Despite the centralization risks, transaction reversibility proved useful when decentralized exchange Cetus was exploited for over $220 million worth of digital assets on May 22, of which validators managed to freeze $162 million. A week later, Sui validators approved a governance proposal to return the frozen $162 million to Cetus. The Sui community passed a vote for frozen Cetus funds. Source: Sui While some decentralization advocates criticized validators’ ability to freeze the funds, other industry watchers praised the rapid response as a step…
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