Recent Ethereum news has seen the network witnessing a major crisis just a day after the Bybit hack.
The heist saw hackers, allegedly linked to North Korea, steal over $1.46 billion worth of ETH.
More importantly, these unfortunate circumstances have created discussions around Ethereum initiating a possible hard fork.
This is to recover the stolen funds carted away by the hackers. However, some crypto analysts and CEOs of businesses have argued differently.
They have opined that rolling back the chain would undermine Ethereum’s claim of decentralization.
Meanwhile, others strongly affirm that it is necessary to prevent hackers from profiting from the large amount of stolen funds.
The Challenge With Ethereum Rolling Back the Chain
Rolling back the blockchain is no small decision. If Ethereum tries to initiate a hard fork, it would mean tampering with the transaction history to delete the stolen funds from the hackers’ wallets.
Notably, this is not uncommon, as Ethereum previously did this in 2016 after the DAO hack, which resulted in the Ethereum Classic (ETC) split.
Nevertheless, many have pointed out that doing it again could raise serious concerns about Ethereum’s credibility.
Critics argue that if transactions can be reversed, Ethereum is not genuinely decentralized.
For example, crypto analyst Will Reves states,
“The ability to roll back the chain is a critical feature of Ethereum. There is no better time or way to demonstrate this key differentiator to keep faith in the ecosystem.”
Still, others suggest that it is proof that Ethereum functions more like a conventional financial system where a select few make decisions.
Meanwhile, a known Bitcoin maximalist, Samson Mow, has been vocal about rolling back the chain.
In a series of posts since the incident happened, he has been pushing for rollback. He posted,
“I fully support rolling back Ethereum so the stolen ETH can be returned to Bybit.”
In addition, he also commented that the stolen funds might be used to fund North Korea’s nuclear weapons program.
This is because the Lazarus group, known to be the agents behind this heist, has been said to be a tool in the hands of the North Korean government.
On the other hand, some think Ethereum should not back down to its principles. For more context, crypto influencer Sina said,
“Ethereum is toast. They can roll back the chain and destroy what is left of the decentralization claim or allow North Korean bad actors to keep $1.4 billion of ETH and unleash an eternal internal battle.”
Ethereum News: Implications of a Possible Hard Fork
A hard fork would have long-term consequences for Ethereum. Firstly, it could lead to another chain split, just like in 2016.
If a large portion of the community disagrees with the rollback, they might continue using the existing chain, creating another Ethereum Classic-like situation.
Secondly, it could set a dangerous precedent. If Ethereum fork to recover stolen funds, it opens the door for future interventions.
According to Arthur Hayes, former BitMEX CEO, “If the community wanted to do it again, I would support it because we already voted no on immutability in 2016. Why not do it again?”
This view suggests that Ethereum has already compromised on decentralization, so another rollback would not be shocking.
Also, the decision could have legal consequences. If Ethereum allows the hackers to keep the funds, regulators like the U.S. Treasury’s Office of Foreign Assets Control (OFAC) might intervene, given the alleged ties to North Korea.
Analyst Matt Kritter stated,
“If Vitalik and the Ethereum Foundation do not push through a hard fork to defund these North Korean hackers, they need to be held responsible for aiding and abetting global terrorism.”
Ethereum Foundation and Recent Backlash
The Ethereum co-founder Vitalik Buterin and the Ethereum Foundation are under immense pressure.
Ethereum news reports suggest they are set to vote on whether to proceed with a rollback or find alternative measures.
The backlash has been intense, with critics questioning Ethereum’s commitment to decentralization.
A viral post by an X user summarized the dilemma: “Vitalik announced that the ETH Foundation will vote tonight on a chain rollback or deleting the hackers’ ETH supply from circulation. Let’s make communism great again.”
Now, if Ethereum rolls back, it risks losing trust. It may face regulatory action and the community’s wrath if it does nothing.
Either way, Ethereum is at a crossroads, and whatever decision is made will shape its future.
The post Ethereum News: Hard Fork Advocacy Growing, Possible Scenarios appeared first on The Coin Republic.
The Coin Republic – Read More