By Evan Spicer
Director of Cryptocurrency Investigations
One of the selling points of the blockchain is that each transaction is permanently recorded and can’t be reversed. The purpose is to heighten security, to ensure that people can’t create fake records of financial activity and to increase transparency. The purpose, in essence, is to reduce the likelihood of scams.
However, the fact that transactions can’t be reversed has led to an entirely different problem – it’s relatively difficult to get money back from suspected crypto scams through refunds and chargebacks. In fact, there is no such thing as a bitcoin chargeback – any money that needs to be returned requires an additional transaction.
To make crypto recovery easier, some have proposed making blockchain transactions reversible. This hasn’t been greeted with unanimous approval – far from it. However, There is now a type of crypto coin called Reversecoin that does allow reverse transactions.
Is Reversecoin an outlier or is it an indication of where the blockchain is going?
How Reversible Can Blockchain Transactions Be Used Crypto Scams?
Reversible blockchain transactions can be useful to deal with the after-effects of a crypto scam. Its main benefit is crypto recovery and getting money back once it has been lost.
Reversible charges would bring blockchain transactions in line with credit cards by allowing blockchain chargebacks. For instance, if transactions are proven to be unauthorized, the customers can simply ask that they be reversed.
Through blockchain forensics, people who feel that they have been scammed can help them make the case that they are owed a refund with reversible blockchain transactions. This process can be easier for crypto scam victims.
How Reversible Blockchain Transactions Can Actually Contribute to Crypto Scams
However, there is a darker side to the possibility of reversible blockchain transactions. One of the advantages of the blockchain is that it provides a permanent record of openly displayed transactions. Currently, it’s not possible to falsify financial activity on the blockchain.
If permanent blockchain transactions were supposed to have prevented crypto scams, why are there so many frauds today?
The anonymity of the blockchain has allowed fraudsters to flourish off the radar. Although all of the blockchain transactions can be seen, it takes intensive blockchain forensics to discover who these bitcoin wallets belong to.
What Is the Future of Crypto Recovery?
The debate over reversible cryptocurrency transactions is likely to rage on for some time. On the one hand, the majority of people presumably want cryptocurrencies to be safer. However, people who value the idea of the blockchain as a public and permanent record may not be happy with the proposal to make bitcoin transactions reversible.
However, there is little doubt that reversible blockchain transitions can make crypto recovery easier. This capability combined with blockchain forensics can improve the likelihood of retrieving money from crypto scams.
If you’ve lost money on one of these platforms, seek advice from our experts who will get you started on the road to crypto recovery. We will investigate your case and create an intelligence report that will help authorities track down your cryptocurrency and identify the culprits.