Circle is researching reversible transactions to help recover funds in cases of fraud and hacking incidents

ChainCatcher news, according to Cointelegraph, stablecoin issuer Circle is exploring reversible transactions to help recover funds in cases of fraud and hacking incidents, a move that seems to contradict the core principles of irreversibility and decentralization in cryptocurrency trading.

Circle President Heath Tarbert revealed to the Financial Times that the company is researching relevant mechanisms to revoke transactions in cases of fraud or hacking incidents while still maintaining the finality of settlement. He admitted that when considering transaction reversibility, he also hopes to maintain settlement finality, which presents an inherent contradiction.

Tarbert also pointed out that although blockchain is often seen as the future of finance, drawing on characteristics of traditional finance can also be beneficial; the current financial system has advantages that blockchain does not possess, and some developers believe that setting a certain degree of transaction reversibility for fraudulent activities, provided there is consensus among parties, is necessary and feasible.