5 Reasons Why Transaction Rollbacks on the Blockchain Must Be Activated

Sometimes, the blockchain security and encryption may be a challenge too. Peradventure some things happened on your blockchain and you wish to reverse the processes; would it be possible? Can you successfully rollback transactions on the blockchain? The answer is a “yes” as much as it is a “no”! Blockchain transactions can be rolled back. Though, it may not be easy to do so. Yet, it is achievable.

The blockchain is a shared, secure and public ledger that records transactions permanently in blocks. These blocks are units of the blockchain that largely depend on prior blocks – although they are distinct – before they can be accepted. When the blocks have been verified by solving a very complex mathematical equation, then they will be accepted and a new block will be formed.

This new block so formed usually memorizes all the things that happened few minutes before it was formed. It also contains a record of an amount of transactions that happened before as well as a reference to the block immediately before it. In addition, it also stores the solution to the difficult mathematical question it solved. Thus, it is quite difficult to reverse the processes – rollback – in this case. In fact, to rollback a process will require that many others are reversed.

Notwithstanding, the transparency which the blockchain offers makes it possible to trace transactions, and view the node that initiated them. It also makes it possible to see how they were validated. If this is the case, then it shouldn’t be wrong to call for a rollback – though some hardliners insist that transactions on the blockchain should remain unchanged. Blockchain is certainly safe; therefore, allowing a rollback shouldn’t be seen as a threat.

Compelling Reasons

There are some transactions which may be conducted in error. It will result in a great loss if such transactions can’t be reversed. For example, if a person sends Bitcoins or other coins or tokens to the wrong wallet by error; it should be an irreversible loss. Nobody wants to watch his money burn while he just stands and can do nothing about it. So, it is beneficial to be able to rollback transactions. Some of the things that may require a transaction rollback are:

1. Sending Coins or Tokens to a Wrong Token Wallet

It is possible to make mistakes when sending tokens or coins to a wallet. If you do not copy the wallet ID correctly, or you paste a different wallet ID; such may happen. When this happens, then you may have lost your assets forever. However, rollback makes it possible to get your tokens back. To achieve this, there would be a need to get more than 51% of Bitcoin nodes to agree that the transactions didn't happen.

This would also be easier if it wasn’t a cross transaction, e.g. from the Bitcoin blockchain to the Ethereum blockchain. So, it is advisable to avoid such transactions except when necessary. Nevertheless, be calm when you’re in such a situation. It will be rolled back as long as majority of the systems or nodes within the network agree that it wasn’t a real transaction. Also, sufficient details should be provided to persuade the nodes in a system to effect such.

2. Ability to Trace a Fraudulent Activity and Correct it

Peradventure a fraudster managed to gain access to your account. This is quite impossible with blockchain though. However, if it happens, blockchain keeps a record of every transaction that is carried out in it making it very easy to be traced. Once you have traced it, if you can provide sufficient information about the fact that the transactions are not legal, then you can convince the miners to roll back the blocks.

If a rollback was possible, you would not have to make “once and for all” mistakes on blockchain currencies and regret it forever. You would not be defrauded and be able to do nothing about it. Instead, you would be able to track the fraudulent activity on the blockchain and correct it by rolling the transactions back.

3. Using a Wrong Wallet Address

It can happen that you have been using the wrong address for your transactions. All the coins and tokens that you taught would have been secured in your wallet have probably being going into another’s wallet. In the real sense, nothing can be done about this. It is lost and lost forever. The only way you would ever be able to access it is if you can access the pseudo-recipient.

This is quite difficult on the blockchain too since wallet addresses do not have any personal information linked with them. However, if you get lucky and are able to contact the person, then you can plead with such a person to help. Imagine if the rollback was possible, life would have been so easy for you. You would simply provide necessary evidence and convince miners to rollbacks.

4. Loss of Private Keys

This is one of the deadliest things that can happen to a person’s account. Losing your private keys can be compared to losing your signature and account details to people. They would just take advantage of that and steal your money. Not to talk of the private key that can’t be changed for any reason. Once it has been nabbed by some thief, then they would also have equal rights and access to your account.

A rollback would have helped out here. One would have been able to trace transactions, reverse them; and possibly send your retrieved coins or tokens to a newly created wallet. It would be better to create a new wallet because the private key is permanent. The fraudster would still gain access to it.

5. An Invalid Transaction

It is possible that you carry out a transaction which you did not originally intend to. It is also possible that you may have performed the wrong transaction. E.g. you sent 100 Bitcoins instead of 10 Bitcoins which you intended. A transaction rollback would help to rectify the problem. It will trace the transaction, necessary agreements would be made and your coins will be yours again.

There is no doubt that enabling transaction rollbacks will help to put an end to missing crypto and loss of value around the world.

Gb Adolph Obasogie is a keen follower of all things crypto. He is a member of the Information Systems Audit and control Association and a Chartered Accountant.