Ethereum Foundation Developer Rejects Blockchain Rollback Post Bybit Hack
Tim Beiko, a leading developer at the Ethereum Foundation, has categorically dismissed the notion of initiating a rollback on the Ethereum blockchain in response to the recent hack of the Bybit crypto exchange. Through a comprehensive post on X, Beiko elaborated on the impracticalities and challenges associated with such an idea.
Challenges of an Ethereum Rollback Explained by Tim Beiko
On February 21, the Dubai-based Bybit exchange experienced what is being described as the largest crypto heist to date, with attackers making off with $1.4 billion in mantle-staked Ethereum (mETH) and other ERC-20 tokens. This incident has sent shockwaves across the cryptocurrency sector, igniting discussions around potential recovery strategies.
Advertisement Banner
One of the proposed strategies under consideration is a rollback of the Ethereum network. Blockchain rollback refers to the process of reverting a blockchain to a previous state, effectively undoing recent transactions, but Beiko argues against its feasibility.
He draws a parallel to a 2010 Bitcoin network incident when Satoshi Nakamoto deployed a software patch to nullify a transaction where a user managed to mint an astonishing 146 billion BTC. At that time, Bitcoin mining efforts were negligible, and the cryptocurrency was valued around $0.07 per coin.
Beiko also recalls a similar event on the Ethereum network back in 2016. A decentralized application (dApp) named TheDAO, which held an estimated 15% of the total Ethereum supply, was compromised by a hacker. Fortunately, TheDAO’s developers had anticipated such a scenario and incorporated a failsafe mechanism that temporarily halted all withdrawals for a month in the event of a breach. This window allowed Ethereum developers to manually update TheDAO’s database through an “irregular state change.” However, this controversial decision led to a split in the Ethereum community, resulting in the creation of the Ethereum Classic chain.
In relation to the Bybit hack, Beiko provides several reasons why a blockchain rollback would be unattainable. First, the Ethereum network did not register any violations of protocol rules since the hack was executed through a compromised multi-signature wallet interface. The custodian erroneously authorized a transaction, culminating in the asset loss. Additionally, the hacker has already started transferring the stolen assets, unlike the TheDAO scenario. Hence, any rollback effort would lead to a relentless chase. Lastly, the Ethereum network’s complexity, with its various bridges and decentralized finance (DeFi) protocols, means that another “irregular state change” could trigger widespread disruptions.
Current Ethereum Price Analysis
At present, Ethereum is trading at $2,754, marking a 2.77% increase over the past day. The cryptocurrency’s current trajectory reflects market activities and investor sentiments.
As the Ethereum community ponders over the implications of the Bybit hack, the complexities of the network’s interconnectedness and the lessons from past incidents provide valuable insights into the challenges of executing a blockchain rollback in today’s advanced crypto landscape.
