Bitcoin Forum

As we know, there are currently many cases of crypto hacking, especially this often occurs in ERC20-based tokens. So to anticipate this, should Ethereum add the "Frozen Wallet" feature just for certain Adresss to their smart contract? I think this way can prevent the hackers to selling their loot. Although this method will change the crypto vision from "decentralization" to "centralization", but if this method is effective I think it's no matter.

What do you think?

Nah. In the past, I have seen many erc-20 token developers who can lock their tokens and this hasn't been accepted by investors. Developers with the ability to lock tokens were treated as scammers. That's how investors would also treat ethereum devs like Vitalik if they ever implement a "frozen wallet" feature.

I am not sure how feasible this would be. However, they can introduce some kind of lock mechanism for our wallets. Like even if the secret code is leaked to some strangers, this lock should protect the coins in that wallet. Or make sure to have 2FA sort of things for wallets with certain number and above ETHs. or in USD values.

Ethereum can't control tokens issued in it's platform but it does provide them with necessary tools to program themselves according to the need.
Tokens issued in ethereum platform can create the function to freeze accounts with smart contracts and it can be used in the case of large hacks. Disintegrating the hacked token and minting new could be possible.

there would be a reason for investors not to trust the team when they have that feature. i for once would consider my cryptos be lost if i lose the access or hacked by someone. you can't really trust a developer who would add such feature since they can just accuse anyone and lock the wallet. hell they are even postponing to add the tokens to the exchange listing just to hold bounty hunters from dumping and this means they aren't up to pay them for the marketing services they got from the bounty hunters - consider them scam.

No, this is wrong. It will compromise the whole idea of crypto-currencies and the paradigm of your keys = your coins.

I wouldn't give a satoshi for coin where somebody somewhere could decide to lock my own coins.

yes you're right, when there are projects that lock their tokens, many investors blaspheme. what else if there is this feature. there may be many investors who no longer believe in ethereum.

frozen wallet is not a solution. it can't even solve the existing problem. might look good because hacked funds can't be used. but we still don't know who hacked and how to return the funds to the original owner.

Are you sure? what is the advantage of this. just because it can freeze the funds that are on the wallet, then this looks amazing. I think if Ethereum implemented this feature on the platform it would only conclude a new problem.

and I don't agree with this. if indeed they want to implement this feature. why is there a blockchain and decentralization?

nope, not a cool idea

As transactions wouldn't be permissionless anymore, it would just be probably used by governments to pressure anyone having that power to block everything the government wants.
The freedom owning your own coins is the whole basis in this space, if you take it away from someone, someone will most probably take it away from you at some point.

Its going to be the case if a team of a project has the kind of smartcontract. The project being this controlled is not going to be welcomed by the community. XRP being centralize is even opposed by the community even without this freezing feature so you can compare your wallet as a bank account in the real world for they can freeze it when any activity they just suspect.

This is of course cool,but in this case, the ethereum team will have to invite an entire Department to work.After all, who will be engaged in auditing and problem solving?

I do not doubt if Ethereum add any crazy feature like frozen wallet and people who have a minimum common sense will avoid them like a plague as there is no guarantee that my funds will be safe if they add any feature like that and even if without those feature i am not trusting the coin any further because of the developers action in the past and how they are handling the development.

On the one hand, it would be useful. But on the other hand, hardly anyone wants such a function to appear. After all, in cryptocurrency, it is appreciated that each user manages his wallet and his funds. And if someone the third will have to them modicum what the access, then this will cause negative reaction.

This is not something to be accepted by the majority, including myself. This will be used in other events other than hacking in the future, and the result will be very bad. There are privacy tokens like 0x based on Ethereum, how will they keep the project alive? This decision could harm ETH rather than benefit. On the other hand, what should ETH do to the hacking event after the measures have not been taken to counter it?

Not a good one mate, that would surely break the freedom that crypto enthusiasts seek to grant the world in terms of their finances. I think people should learn how to keep safe their funds and also learn how to do stuffs the right way and avoid shortcuts as this always lead to getting scammed. Several documents and guidelines have been provided to guard people from being scammed but the problem is that most people fail to read!

it is not needed. A frozen wallet will only add new problems to ethereum. there are many things that need to be fixed on the ethereum platform, and instead of making this feature better focus on solving very important problems.

That would be against Buterik idea of decentralization, he would be no different from centralized exchange that he hates. It would also be make other projects deter from using their platform because they wouldnt like have their wallets frozen.

It is not a good idea as it can be used in opposite ways also like they will froze some wallets without big evidence.

Though thinking positively, we can say that this is a good strategy to counter all the hackers and froze their loot money but hackers are not that noob to do this kind of mistake as there are plenty of ways to counter it before the address will be flag like they will direct their loot to exchange address and convert it to bitcoin.

That means the developer will add a backdoor to create that feature, and this idea has already implemented by bancor platform. But this must behold by the trusted person because that feature can be used for a criminal to steal the amounts that already in the account. I think if this is not the best way and we can try another way that's better than create a frozen feature. It's just like give a backdoor to the blockchain.

When that feature will be having a vulnerability and so many hackers will be targetting it. That idea is so far from being a secure idea. You should think about another possibility too because blockchain is running by so many people. That must be based on the community's decision to consider if that is worth to add the frozen wallet feature or not. The implementation must be done through the EIP.

A good solution, but some ERC20 based projects can already partially lock their own tokens so that when the airdrop or bounty distribution does not occur the price drops excessively.
But many investors are disappointed if their tokens are in lock like that, not according to what they invested. But it can also if the Frozen Wallet is used appropriately for the sake of tackling excessive crypto hacking.

Indeed there will be many pros and cons that emerge. As the owner of the wallet we will feel our assets monitored by a third party, but on the other hand this will be very useful if there is hacking our wallet. As a user, you must take good care of your private key and do not allow it to be accessed by others. If someday a frozen wallet will be applied, there must be some rules that must be changed so as not to harm anyone.

I agree with this. Though it has a good purpose in terms of avoiding hackers but it is still hard to let the money be locked by developers. Though adding additional security features like another private keys besides to opening the wallet it would be seemed over loaded but still hackers could make it through. Besides as you stated it would break the nature of crypto currency and user won't feel safe monitored by other party.

ethereum is already heavily centralized so there is no worries there and you can add any feature that you think requires centralization without any problem. but the real question in my opinion should be about whether this is going to fix anything or will it only postpone the inevitable. for example if the hacker has the ability to dump the token then adding the frozen wallet feature only delays the dump unless you want to burn the coins for good so that nobody can EVER spend them which is not the case with any token.

Of course before the developer goes on that action then they will be the one who think if it was be the good one to do for the sake of their customer or the user.

How about if their adding some security on the wallet not just easily open by private key because it just easy to copy and paste it when someone do lost it.

Recently, Vitalik Buterin conducted a survey on Twitter, I am interested in the community how much money should have been stolen by hackers so that the community agreed to roll back the network.
He was criticized, because this does not comply with the principles of cryptocurrency and blockchain. In my opinion, exchanges should better monitor their security in order to prevent hacker attacks.

Like you said, this would turn it from "decentralized" to "Centralised" because the whole point of a decentralised Currency is to remove the powers from one person or a group of persons and put it in the hands of the people, if one person or a group of persons has the authority to freeze the assets in any wallet if their choice then it wouldn't be a fair system, would it? And if you put it in the hands of everyone, people would start locking the wallets of anyone they hate just for the fun of it, this is not fair too.

I think it will cause new problems. what if the developer uses a frozen wallet to lock one of investor wallet that has many tokens. wouldn't this be a big problem, it might reduce trust in the ethereum platform.

and we know that hacking problems usually attack large coins like bitcoin. so frozen wallets don't really matter for erc20 tokens. I see a lot of negative things from the positive side if this is applied on the ethereum platform.

This is not a good feature for Etherium because there are a lot of victims who will fall for it too, especially those who only get some ETH from the hackers. If the hacker will send some ETH on your wallet on the purpose of diversifying his loots to mislead the authority? Imagine what would be your situation in that scenario and also let's say, you're holding a massive amount of ETH too. that's a lot of complicated explanation right? The only best way to prevent the hackers from getting the funds of the innocent investors is, to let them study security and measures on how to protect their crypto assets from hackers.

It depends on the level of damage that would have been done to the cryptocurrency in the wallet before you can even get the chance to activate the frozen option, and don’t also forget that these hackers are also professional hacker, they follow every details and every move of all the people that are working to secure the crypto space and its wallet, and as these people advances in security, so the hackers also advance in hacking system also.

If Ethereum add that option to their wallet, hijacker may have taken control of all the login detail and move the money out before report of such hacked wallet could even get to them, except it is their own personal wallet that has been hacked which will send a distress signal to them immediately.

I think this is stupid because I am a supporter of a decentralized cryptocurrency, because for this it was created so that no one could control anything, and all these innovations in which centralization is present spoils the whole industry, so ladies and gentlemen, let's try to use decentralized more often products of the cryptocurrency industry so that it continues to develop further.

I would like labeling those wallets of hackers/scammers, "scam wallet address".

This is way better than the suggestion of OP, imo. There should be a voting process on this and once it has reached its threshold, many newbies will avoid being scammed again if they are checking out the ETH addresses before sending.

frozen wallet is a setback for the ethereum platform. this will only reduce the level of trust in platforms and projects in the ethereum network. investors will be afraid to hold tokens, because devs could without any reason freeze his wallet. maybe this is good for hackers, but this will only cause new problems

I agree if there is this feature. With so many hacking going on, at least the hacker doesn't enjoy the theft token. If this happens. maybe hackers will rethink to steal tokens in other people's wallets because at the end they can't sell them or transfer them until there is a legal decision