Recoverable Token: Recovering from Intrusions against Digital Assets in Ethereum

Blockchain systems allow storing digital assets in a tamper-proof, consensus-based, append-only ledger in a decentralized fashion, where no single party has full control. A blockchain is an immutable, append-only, log of transactions. Unfortunately, in some cases there is the need to undo transactions that result from intrusions, e.g., when the private keys of a wallet are stolen, when one of the transaction participants does not comply with what was agreed upon, or when smart contract vulnerabilities are exploited by attackers. There are also accidental scenarios, e.g., when private keys are lost leaving the associated digital assets inaccessible. Although there have been a few proposals which allow modifications to the blockchain, they break the basic guarantees they are supposed to provide. We propose an approach for wallet owners to recover from attacks against their digital assets and accidental loss, while still assuring fundamental properties of the blockchain technology. We implemented the mechanism for Ethereum / EVM.