The idea of an Ethereum network rollback following a major hack at the Bybit crypto exchange has been categorically dismissed by Tim Beiko, a leading developer with the Ethereum Foundation. Beiko, using a detailed post on X as a platform, laid out the reasons why such a proposal is not just impractical, but also impossible. This rebuttal is of significant importance given the magnitude of the recent Bybit hack, which is the largest in the history of crypto and has led to various discussions on potential recovery channels.
Why a Rollback of the Ethereum Blockchain is Unrealistic: Insights by Tim Beiko
The crypto industry was rocked on February 21, when cybercriminals stole $1.4 billion in mantle-staked ETH (mETH) and other ERC-20 tokens from Dubai-based exchange, Bybit. One of the potential recovery routes that emerged in subsequent discussions was the idea of a blockchain rollback. In essence, this involves reversing the blockchain to a previous state to essentially erase recent transactions.
Historically, this idea harkens back to a 2010 incident involving the Bitcoin network, when Satoshi Nakamoto deployed a software patch to invalidate a transaction in which a user had minted 146 billion BTC. Beiko, however, was quick to point out that at the time, Bitcoin mining was still in its nascent stages and the flagship cryptocurrency was hovering around $0.07.
Fast-forward to 2016, and a similar situation arose with Ethereum when a dAPP called TheDAO, which held approximately 15% of the ETH supply, was compromised. TheDAO’s developers had fortunately included a failsafe that froze all withdrawals for a month in case of a hack, allowing Ethereum’s developers to manually update TheDAO’s database through an “irregular state change”. However, this decision resulted in a sharp division within the Ethereum community, culminating in a hardfork that birthed the Ethereum Classic chain.
Applying this context to the Bybit hack, Beiko asserts that a blockchain rollback is virtually impossible. Primarily because the Ethereum network’s protocol rules were not breached – the hack was executed through a compromised multi-sig wallet interface where the custodian mistakenly signed off on a fraudulent transaction. Moreover, the stolen funds are already on the move, making the chase potentially endless. Most importantly, the Ethereum network is far too complex and interconnected now, with multiple bridges and DeFi protocols in place. Another “irregular state change” could potentially trigger a catastrophic ripple effect across the entire network.
Current Market Status of Ethereum
As it currently stands, the price of ETH stands at $2,754, reflecting a 2.77% rise over the previous 24 hours. The daily chart shows ETH trading at $2,756 | Source: ETHUSDT chart on Tradingview.com.
FAQs
What is a Blockchain Rollback?
A blockchain rollback is the process of reverting the blockchain network to a previous state, essentially undoing recent transactions.
Has a Blockchain Rollback Ever Been Done Before?
Yes, there have been instances of blockchain rollback, most notably in the Bitcoin network in 2010 and the Ethereum network in 2016.
Why is a Blockchain Rollback not feasible for the Ethereum Network now?
A blockchain rollback for the Ethereum network is considered unfeasible due to the complexity and interconnectedness of the current network. Any sudden changes could potentially unleash a domino effect, causing severe disruptions across the platform.
What was the Impact of the Bybit Hack on the Crypto Market?
The Bybit hack, labelled the largest in crypto history, led to widespread discussions on security and recovery measures in the crypto industry. It has also influenced the price and market dynamics of various cryptocurrencies.
