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Circle's technical division presented two projects aimed at combating theft and fraud on blockchains, as well as expanding the use of payments in stablecoins.
The Circle Research team worked on the initiatives together with the Applied Cryptography group at Stanford University.
Experts noted that in the period 2021-2023, as a result of fraud and hacking of financial systems based on DLT technologies, about $10 billion was stolen. The main reasons for user losses were "the irreversible nature of digital assets and the immaturity of smart contract security management."
Also, according to them, the lack of reversibility of transactions hinders the mass adoption by businesses of on-chain payment tools like stablecoins. The possibility of revoking transfers is a key feature of modern payment systems that allow you to return unauthorized lost funds, they stressed.
Based on past research at Stanford and the university group's ongoing collaboration with Circle, the developers have published two new open source projects.
The first is the Recoverable Token standard, which allows you to cancel blockchain transfers using various configurations that are suitable "for both commerce and DeFi scenarios."
The second solution in this direction was the model of "R-pools", which provide insurance and liquidity for the recovery of tokens by their owners.
"Payments in stablecoins are often equated with transactions in traditional card networks, which offer reversible transactions and insurance against fraud. We have long believed that the open and programmable nature of money in digital currencies on blockchains will lead to solutions to these problems," Circle experts said.
In their opinion, the created tools can be adapted "for a wide range of financial and commercial, and not just for retail payments."
Recall that in September, Circle introduced the first development of its technical division-the Perimeter open source protocol for creating tokenized lending markets.
The Circle Research team worked on the initiatives together with the Applied Cryptography group at Stanford University.
Experts noted that in the period 2021-2023, as a result of fraud and hacking of financial systems based on DLT technologies, about $10 billion was stolen. The main reasons for user losses were "the irreversible nature of digital assets and the immaturity of smart contract security management."
Also, according to them, the lack of reversibility of transactions hinders the mass adoption by businesses of on-chain payment tools like stablecoins. The possibility of revoking transfers is a key feature of modern payment systems that allow you to return unauthorized lost funds, they stressed.
Based on past research at Stanford and the university group's ongoing collaboration with Circle, the developers have published two new open source projects.
The first is the Recoverable Token standard, which allows you to cancel blockchain transfers using various configurations that are suitable "for both commerce and DeFi scenarios."
The second solution in this direction was the model of "R-pools", which provide insurance and liquidity for the recovery of tokens by their owners.
"Payments in stablecoins are often equated with transactions in traditional card networks, which offer reversible transactions and insurance against fraud. We have long believed that the open and programmable nature of money in digital currencies on blockchains will lead to solutions to these problems," Circle experts said.
In their opinion, the created tools can be adapted "for a wide range of financial and commercial, and not just for retail payments."
Recall that in September, Circle introduced the first development of its technical division-the Perimeter open source protocol for creating tokenized lending markets.
