Blockchain networks have made borderless transactions of digital coins effortless and fast and users can now send funds to any part of the globe without any account verification or third-party approval. However, one of the major setbacks of electronic transfer of digital currencies is that they are prone to human errors, malware, and security breaches that can result in immediate loss of funds that cannot be replaced by any means. This is one of the reasons why crypto users often hesitate to make digital transactions and this can affect the entire blockchain community. This is where ‘Kirobo’ fits in.
Meet Kirobo, an Israeli startup company that has launched a new tool called the “undo transaction” button for Ethereum (ETH) transactions on 12th November 2020. The tool was first available only for Bitcoin transactions but from 12th November it can be used for ETH and later for ERC-20 tokens as well. The tool has been exclusively designed for blockchain users to protect them from irretrievable loss of digital funds. Kirobo aims to create logic layers for blockchain transactions for safe and secure online banking for its users irrespective of human errors.
Furthermore, Kirobo is supported by the Government of Israel and is a branch of the Israel Innovation Authority and has recently been audited by “Scorpiones Group”, a leading cybersecurity firm that makes it all the more authentic.
Limitations of Blockchain Digital Transactions
Digital transactions like trading, sending, or receiving cryptocurrencies might have gained popularity over the years but is subject to various limitations. Let us have a look.
- Though bitcoin and Ethereum transactions have increased massively it has also resulted in a huge backlog of digital transactions and the confirmation of transactions may take hours or even days. This does not necessarily mean that your funds are lost but the transactions ask for multiple confirmations and this may be hectic for merchants.
- Blockchain transactions are anonymous. This anonymity may give rise to complications that may be difficult to handle.
- Transactions are irreversible. Once a transaction is issued, the amount is deducted from the wallet and the money can never be retrieved in case you give the wrong address.
- Blockchains are not entirely immutable. It has been found that hackers and infiltrators can do malicious activities that can result in the repetition of a transaction or ‘double spending’.
- Most of the transactions are uninsured that is your funds are not insured against theft, technical defaults, or other unknown reasons.
How does Kirobo Work?
Kirobo’s “undo button” for ETH is quite similar to the RBF (replace-by-fee) protocol developed for bitcoin users. Kirobo is supported by MetaMask wallet and WalletConnect users. In the past, many Bitcoin users have used the RBF protocol to confirm “double-spending” in exchange for higher fees and this activity has raised quite a controversy. RBF’s ‘double-spending’ has resulted in massive theft and loss of funds for users.
On 12th November, Kirobo announced the “undo button” feature that allows “retrievable transfer” of funds. This means, that individuals who have sent funds to the wrong address can now recover their lost funds.
So, how does it work? Kirobo has created a new protection layer for the safety of ETH transactions.
- First, for every transaction, a code is generated. This code is sent to the recipient through a text message or the phone. The recipient has to enter the correct code to finalize the transaction and to receive the funds.
- Secondly, the ‘fund retrieval’ policy or the ‘undo button’ system allows the sender to cancel the transaction and retrieve the funds into the wallet at any time. However, this can only happen if the recipient has not entered the code.
Benefits of Using Kirobo
- Kirobo has no access to user’s private information or funds.
- Kirobo allows fund retrieval even if the system servers are down.
- The platform has been audited by the Israel Innovation Authority and other external cybersecurity firms.
- Funds in crypto wallets cannot be frozen. So Kirobo provides security to online transactions and relieves the stress and anxiety of crypto users.
- The rising popularity of DeFi protocols has increased ETH transactions to more than 1 million which is thrice the transaction of Bitcoin. Kirobo will help in seamless transactions and safeguard the interest of crypto merchants. Kirobo also aims to expand its services to other popular blockchain networks in the future.