Reversible transactions could help solve crypto theft - research

The "opt-in" token standard allows users to report crypto theft to a management contract. The algorithms, in theory, should find illegal transactions and freeze assets.

Stanford University researchers have developed a prototype for "reversible transactions" on Ethereum, arguing that the discovery could be a solution to reducing cryptocurrency theft. In a Sunday tweet, Stanford University blockchain researcher Kylie Wang talked about the idea of reversible tokens. 

"The major hacks we've seen are undoubtedly thefts with compelling evidence. If there was a way to undo these thefts under these circumstances, our ecosystem would be much safer. Our proposal allows the thefts to be overturned only if approved by a decentralized quorum of judges."

In fact, this mechanism is a "short period after the transaction to challenge the theft and possible recovery." 

Both sides of the transaction would also be able to provide the judges with evidence so that they would have enough information, in theory, to make a fair decision.