Reversible USDT transactions on Ethereum and Tron network

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Can crypto transactions be reversed?

The question of whether cryptocurrency transactions can be reversed or not has been and will always be asked. This question is not asked simply due to curiosity, but a higher percentage of the time is due to funds being sent to a wrong address. Even the 'non-newbies' and 'experts' can mistakenly send funds to wrong recipients due to not double checking the addresses before hitting the 'send' button.

Unlike in bank transfers, where a sender may complain to the bank and the recipient will be contacted/ account will be frozen and amount received will be force-reversed in the case of a non-compliance from the receiver, the answer to the above question is 'NO'. Transactions in Bitcoin, and other cryptocurrencies are designed to be irreversible.

With the long string of Alphanumerical characters in crypto addresses, the chances of sending funds to a wrong address in very high and mostly inevitable. A mistake in a single character in the address means that the cryptocurrency being sent will be permanently lost in the block and cannot be recovered.

For it to be recovered, half the miners (50%) have to agree that there is an error and reverse it accordingly. Unfortunately, this is also impossible due to the hundreds of thousands of miners around the world. It will be impossible to get them all to agree. You wouldn't even be able to contact them in the first place.

USDT transactions are reversible

USDT (US Dollar Tether), a stable coin which is pegged to a dollar is heavily centralized in opposition to other cryptocurrencies which are decentralized. This means that the governing bodies are in control of your funds and can monitor and control 'where and what' your money 'goes and does'.

Unlike other cryptocurrency transactions that cannot be reversed in the events of an incorrect recipient address, transactions in USDT can be reversed. USDT transactions on the Tron and Ethereum network can be frozen and reversed using smart contracts which allows tokens to be frozen, destroyed, issued, and sent.

Therefore, funds which were either sent to wrong addresses or stolen can be recovered on the Tether blockchain.

The reversibility of transactions on stable coins may seem like an advantage from the perspective of the situation discussed above, yet it defeats the purpose of cryptocurrency in the case of anonymous peer to peer transfer.

The features of USDT was created so the governing bodies can be compliant with requests from law enforcement agencies. This means that there is no privacy and the users do not have 100 percent control of their funds.

This is cryptocurrency defeated.

Permit me to quote a statement by @scottcbusiness in his article (How Safe Are Stablecoins Part 1 – Fiat-Collateralized Coins). "One of the things to understand about stable coins that are heavily centralized like USDT aka tether is that they have 100% control over all of the funds with way more over reach than any bank of the Federal reserve could have".

Conclusion

Transactions in cryptocurrencies like Bitcoin and many others cannot be reversed due to their decentralized nature. On the other hand, USDT transactions can be reversed and is not designed to be decentralized.

Though this seems like a good thing in the case of lost or stolen funds, you have reasons to be scared because it means that users do not have overall control of their funds and their transactions can be monitored, controlled and questioned.

In a few days, I will be writing extensively on how the reversibility of USDT transactions eliminates anonymity in peer to peer electronic payment, thus defeating the purpose of cryptocurrency.

This article is written for entertainment and educational purpose only. If you find any part of it offensive or an infringement on copyright, do not hesitate to contact me on the matter.