2 ms·

Blockchain newb question. Would it be possible to add protection to a protocol so that when a theft occurs, the stolen tokens are erased/burned/retrieved and a

Blockchain newb question. Would it be possible to add protection to a protocol so that when a theft occurs, the stolen tokens are erased/burned/retrieved and a credit for the stolen amount is automagically credited to the wallet from which the tokens were taken?

danielvf 5y ago
Yes. The USDT and and USDC stablecoins do this. Competent attackers immediately trade these for other currencies that can't do this. Newb attacker don't, and loose those funds back to the projects.
manquer 5y ago
If you are building a truly distributed blockchain that is decentralized then very hard to do. Building consensus to classify some trades as theft is hard to do in-band. Even if do build such a workflow in the chain, how do you get everyone to agree ? Distributed consensus will take lot more time than attacker quickly making trades and moving the coins across multiple chains etc. If you centralize this action and have few people decide ( as has happened in some coins in the past) it is no longer a decentralized system.