Upgrade In Cryptocurrency Technology To Aid Recovery Of Frozen Ethereum In Parity Wallet

ethereum ecosystem

Within the past year, Ethereum has become the second most valuable digital currency after Bitcoin. Over $62 million worth of Ethereum were lost in 2017. More than 500,000 Ethereum stored in wallets developed by a blockchain software firm, Parity became frozen. This incident resulted from the exploitation of the software used to store tokens in the Parity wallet by a hacker.

Create2 Upgrade To Aid The Recovery Of Frozen Ethereum In Parity Wallet

The Parity CEO, Jutta Steiner, revealed on the latest episode of Fortune’s “Balancing of Ledger” that the lost funds can be recovered. The CEO disclosed that last week’s Ethereum hard fork, Constantinople, could restore the frozen digital currency. This improvement in Ethereum blockchain includes CREATE2 upgrade.

Previously, Parity developers had argued for an upgrade of the Ethereum blockchain without success. The advancement would have helped to recover the lost cryptocurrency. With the implementation of the hard fork, Steiner is hopeful that the issues with the Parity wallet will be resolved.

According to Steiner, CREATE2 would have prevented the loss of the funds if it had existed when the incident occurred. She pointed out that the upgrade will bring about changes on the Ethereum blockchain. However, she insisted that the hard fork is the right step to take in restoring the frozen Ethereum.

Meanwhile, the Web3 Foundation, a cryptocurrency fundraiser is conducting a second token sale. The value of the initiative for this fundraising could be $1billion. Parity’s Polkadot project benefits from the Web3 Foundation. However, Steiner confirmed that the intended recovery of the lost fund will not affect the fundraiser.

The Ethereum funds lost to Parity was as a result of a bug in Parity crypto wallets. The coded smart contract used to store tokens in these wallets was incorrect. This defect allows hackers to freeze or make tokens held in the affected wallets immovable. Though the software company attempted to fix their wallets, they failed to eliminate the flaw from the system. However, Parity argues that the funds were “frozen” and not “lost.”

How to unfreeze the funds became an issue. The creation of a hard fork on the Ethereum blockchain appears to be the only way to fix the problem. The upgrade will bring changes in the operations on the Ethereum network. Through the changes on Ethereum network, Parity Technologies hope to reclaim the funds frozen due to the coding error.

Ethereum (ETH) Price Today – BTC / USD

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ethereum
Ethereum(ETH)
$147.46
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Previously, the digital company sought the support of those who run the Ethereum network for an upgrade. The firm expected that this change will enhance the functioning of the Ethereum platform. Besides reclaiming the frozen funds, the upgrade will secure the system against further exploitation by hackers.

Parity Technologies insisted that a hard fork on Ethereum blockchain is the only possible path tot to restoring the frozen fund. The company promises to make the funds accessible to the user through this “rescue operation.” Finally, the recent upgrade of the Ethereum network will help Parity to reclaim the funds.

Though the upgrade comes with changes on the Ethereum platform, it will restore millions of dollars to users. The Constantinople hardfork is Parity’s weapon in achieving a successful “rescue operation”

Do you think the rescue operation will be successful? Comment below.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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