Unfiltered

Why Can’t You Reverse Stolen Bitcoin?

Blockchain or going DLT (distribute Ledger Technology) is super cool. It is the most happening and hot thing in tech. This started with Nakamoto’s Bitcoin roughly a decade ago.

This cool technology means new possibilities like using money generated on computers just like using cash, but doing a lot more than what cash can do.

But, on the flip side having a blockchain system also means that there is no centralized authority who holds all the records or have all the power. One cannot alter any particular record without a consensus of the majority. This majority consists of a large and insane pool of miners.

This clearly means that the wallet addresses cannot be deleted and transactions cannot be altered.  The system is trust-less, this means run by and built on decentralized consensus.

Because voting for each heist is not possible, it is almost impossible to vote and to reverse your crypto funds back to you once they are effectively stolen from you.

However, since all transactions made on the blockchain are public so anyone can verify transactions, to combat this lack of anonymity, the identities of the transactors are anonymous. The anonymous owners of the asset or coin, are unknown to the miners. This complicates the reversal process making it highly impossible to rescue the stolen money and to return it back to the rightful owners because, finding out the rightful owner is now possible in the status quo, as the records consist of numbers to represent people, not names.

In other words, new records can be added by all, but existing records cannot be modified by anyone. No centralized authority means there is no one to process any change. One spent, the money is gone. To distinguish if the money was spent willfully or somebody stole it can not be proved unless it is a hackers work.

But, even if the malicious activity is flagged, it can not be returned to the person whom it rightfully belonged to.

This means that as important as buying cryptos, it is to keep them safe. For example by performing a reputation check by typing the website name in a search engine in combination with the search term “scam.” This can lead to negative reviews and truth about it.

You can also try this scam test. It walks you through things like how to check website ranking history, how to inspect website registry history etc.

Khunsha Javed

A Filmmaker, PR enthusiast & Editor of BlockPublisher-Unfiltered. I like things that make my brain tingle. Email: khunsha@blockpublisher.com or editor.unfiltered@blockpublisher.com

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