Why are smart contract transactions irreversible?
Asked 4 years ago
What happens if you engage in a P2P transaction and mistakenly transfer the wrong amount? The what? How are you supposed to reverse the transaction and get your money back?
Jeramiah Evans
Wednesday, March 23, 2022
Generally, smart contracts are irreversible since there is no third party to verify transactions. But because they are accessible, traceable, and immutable, this irreversibility can be overturned. Consider the DAO hack of 2016, for example. The DAO community voted unanimously to reverse Ethereum’s transaction history till the day of the attack, prompting a hard fork and a reversal of Ethereum’s smart contracts.
Besides, smart contract dispute resolution tools are built on dApps that solve P2P transaction disputes, like the Kleros ADR.
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