Ethereum Rollback: $1.5B Hack Raises Complexity

On February 21st, the cryptocurrency exchange Bybit suffered a significant hacking incident, resulting in a loss of approximately $1.5 billion. In response to this event, Ethereum core developer Tim Beiko addressed the possibility of reverting the Ethereum network to its pre-attack status. However, Beiko indicated that from a technical standpoint, such a restoration is nearly impossible. Unlike the infamous TheDAO hack of 2016, this breach did not contravene Ethereum’s protocol rules. Implementing a rollback could trigger widespread, complex consequences far exceeding the initial damage incurred by the hackers.

Industry experts echoed Beiko’s sentiments. Anthony Sassano, for instance, highlighted that the intricate structure of the Ethereum ecosystem makes any straightforward rollback impracticable. Representatives from Yuga Labs cautioned that the financial implications of such an action could dwarf the estimated losses. Bybit’s CEO, Ben Zhou, remarked that any decision regarding a rollback would necessitate community consensus, underscoring the collaborative nature of the blockchain ecosystem.