Circle is exploring reversible transactions to help recover funds in cases of fraud and hacking.

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

Circle President Heath Tarbert revealed to the Financial Times that the company is researching relevant mechanisms to reverse transactions in cases of fraud or hacking, while still maintaining settlement finality. He admitted that when considering transaction reversibility, they also hope to preserve finality, and there is an inherent contradiction between the two.

Tarbert also pointed out that although blockchain is often seen as the future of finance, it can be beneficial to draw on features from traditional finance; the current financial system has advantages that blockchain does not yet possess. Some developers believe that, provided all parties agree, introducing a certain degree of transaction reversibility to combat fraud is both necessary and feasible.