Israeli startup Kirobo has announced the launch of an “undo transaction” button for Ethereum (ETH) blockchain transactions.
Previously available exclusively for Bitcoin, the feature is now open to ETH transactions as of Nov 12, to be followed later by ERC-20 token transfers.
According to the Israeli government-backed company, the feature will eventually include protection against sending funds to smart contracts that do not accept deposits. Such transactions previously resulted in an irretrievable token loss.
It happened again, one small mistake and over $1million was lost in one moment of inattention?
Do you really think this is how a normal financial system should look like?Stay tuned#bitcoin #ETH #crypto #kirobo
Someone just lost $1,134,905 28,050.04 AAVE https://t.co/ITHGJPBvy7
— KIROBO (@KIROBO5) October 28, 2020
Disrupting the Accidental Token Burn
According to Kirobo, the feature is now available to ETH holders using MetaMask and WalletConnect using a process that closely resembles that of its popular bitcoin transaction solution.
Users must enter a unique password when sending ETH to an address. Unless the recipient’s address enters the same password, funds are not released from the sender’s wallet.
In the event that a wrong password or no password is entered, the sender is able to retrieve their funds at the touch of a button. In so doing, the solution eliminates the common problem of locking funds permanently in erroneous smart contracts.
It also protects users from inadvertently burning their ETH tokens by accidentally sending them to the infamous 0x0000000000000000000000000000000000000000 address, which now contains more than $500 million worth of lost ETH and ERC-20 tokens.
Kirobo claims that the solution provides protection against man-in-the-middle attacks because hackers cannot access the ETH funds without the corresponding password. It also says that it does not hold custody of user tokens at any time, for added trustlessness.
Ethereum (ETH) Scaling to Benefit
Speaking about the solutions’ potential to help Ethereum scale as it becomes crypto’s De-Fi hub, Kirobo CEO Asaf Naim said:
“The use of our logic layer finally eliminates the need to send a test transaction, sharply reducing the level of anxiety users feel when transferring funds to a third party. Kirobo supports the principle of decentralization and gives users the same peace of mind that comes from sending funds between banks. Actually, it’s superior since – as we know – funds in crypto wallets cannot possibly be frozen.”
The exploding popularity of De-Fi protocols has resulted in daily Ethereum transaction volumes exceeding 1 million, which is more than three times that of bitcoin.
According to Kirobo, this solution will assist greatly in scaling Ethereum as the company seeks to create layers on popular blockchains that protect transactions from human error and make them as secure as anything traditional finance has to offer.