The question of whether the ThorChain protocol ought to put a stop to transactions with ties to hacks has set off a row between traders and developers, making the stolen funds an issue of some contention. Traders would have the project step in and do its duty, but the developers take a different view.
Why ThorChain Won’t Block Stolen Funds
Speaking on Unchained’s podcast, they made it clear that ThorChain is built from the ground up as a decentralized system. That design precludes any one party from having the authority to block or censor what goes through it; their technology simply does not permit them to intercede in the event of malicious acts. Should the network be altered, it would demand the agreement of two-thirds of the nodes, something that can take anywhere from three days to a fortnight. In the developers’ estimation, such a protracted procedure is necessary to keep anyone from unilaterally changing things at a moment’s notice, thus upholding the financial freedom and decentralization at the heart of the platform.
Traders Push for Action After Hacks
There is a feeling among some traders that ThorChain should be doing more to keep hackers from making off with stolen money. On Unchained, the argument was made that the project has the means to do so, with tools in place to put an end to ETH or BTC trading and thus put a temporary hold on transactions of those assets. Yet there is frustration over the fact such measures are not being brought to bear when security issues arise. Some point out that while ThorChain did once suspend trading for five weeks, it was done for the good of the project, not for the protection of its users. That kind of precedent leads to a certain amount of skepticism; users are left to wonder if the protocol’s inaction is tantamount to turning a blind eye to bad actors.
The Decentralization Dilemma and Trust Issues
What is at the heart of this debate is a perennial problem for decentralized finance, namely how to reconcile user safeguards with the notion of censorship-resistance. ThorChain’s developers argue that admin keys are merely a stopgap for configuration and do not equate to actual powers of censorship; in their view, to block transactions would be to erode the distinct character of a decentralized protocol. The community is not so sure. A number of traders on Unchained have pointed out that projects which will not step in when theft occurs are putting their credibility on the line. There is a sentiment that if one cannot be sure funds are secure in the wake of a hack, there is little reason to put trust in a platform like ThorChain where bad actors are left to do as they please.
Source — Unchained: https://www.youtube.com/watch?v=IPLfV7vuwpU
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