The financial losses caused by human errors when transferring Bitcoins to the wrong wallet addresses might finally become a thing of the past.
The Israeli-based blockchain startup Kirobo announced this week that it has created the technology allowing to cancel the wrong Bitcoin transaction.
The feature called “Retrievable Transfer” protects users from sending their cryptocurrency to the wrong hands, whether by mistake or due to malicious activity. According to the company:
We believe that an additional technological leap can close this gap and remove the weak spots that still prevent mass adoption.
How does the service work?
The startup, that aims to make blockchain as simple and secure as online banking, claims to solve the irreversible transaction problem. Their protection solution works as the third layer of verification to cryptocurrency transactions on Bitcoin and Ethereum networks.
According to the company, the new layer of protection allows to prevent the losses caused by human errors as well as by the intentional changes made by third-party attackers.
Reportedly the new technology provides both sender and the receiver with the unique and matching code, which has to be entered by each of them in order to receive funds. This means that the sender may retrieve funds if the receiver cannot submit the right code, which was sent to him by phone, text message, or any other form after the sender’s funds were deducted from his balance and appeared on the blockchain network. As the company states:
Until the right code is provided, the sender can cancel and retrieve the transaction.
Reportedly, Kirobo will have no ability to influence the transactions as it does not hold the user’s private key and has no access to any of their passwords. As it is known, the platform has been audited by the cyber intelligence company Scorpiones Group and is supported by Israel Innovation Authority.
Human errors are the common ones as the vast majority of crypto wallet addresses contain a long string of numbers and symbols, that requires checking details several times when transferring.
The decentralized nature of digital currencies does not allow recovering or canceling transactions once they are done. This means that if the funds are sent to the wrong address, the only way to retrieve them is by contacting the receiver and relying on his goodwill to return the assets.
Since such mistakes make cryptocurrency transactions stressful, the industry is already adopting innovative solutions that enable usernames to replace full-length cryptocurrency addresses and simplify the process.