January 7, 2020 / by Crypto.IQ
Robert Forster has written a new type of Ethereum (ETH) wallet software that uses the Replace-By-Fee protocol to make wallets essentially impenetrable, even if a hacker has access to the private key.
In order to test this, Forster posted the public and private key of an Ethereum (ETH) wallet on Reddit. Typically, if someone has the private key of a wallet it is straightforward and easy to drain the funds out of that wallet. However, when someone tried to drain the roughly $130 out of Forster’s wallet, the funds were instead sent to Forster’s ‘safety’ address.
Essentially, Forster’s wallet software monitors an Ethereum (ETH) address, and if an unauthorized transaction occurs the software immediately creates another transaction for the same funds, except with a higher fee. On the Ethereum (ETH) network, if there are two transactions for the same funds, the transaction with the higher gas costs will be confirmed.
Basically, if a hacker tries to steal any funds out of a wallet that uses Forster’s software, a transaction with higher gas costs for the same funds immediately nullifies the hacker’s transaction.
This new software has been named Blockd, and is available for Ethereum (ETH) and all of the ERC-20 tokens at this time. Technically, it would be straightforward to create such software for Bitcoin (BTC) as well.
All this being said, it is unknown at this time if this software is truly impenetrable to hackers, but it does seem like a much needed extra layer of security at the least.