Ethereum: Why isn't transaction replacement supported? - F.I.S.A.R. A.P.S.

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Ethereum: Why Reversal Isn’t Supported

The Ethereum community has long been discussing the possibility of replacing traditional transactions with new ones that are more efficient and effective. However, one of the main features that prevents this from happening is called “reversal.”

Reversal refers to the process of creating a new transaction that replaces an existing one on the blockchain. It’s similar to how a website’s lockout system works, where if you try to log in again after you’ve been locked out, your account becomes inaccessible until you fix the problem.

Ethereum’s reversal is implemented using a mechanism called “sequence numbers.” When the same sender creates two transactions, they have different sequence numbers. However, there’s a bug: when one of these transactions is processed and confirmed, its sequence number becomes higher than the other transactions.

This means that if we were to create new reversal transactions for existing ones, it would be impossible to chain them together in a sequential manner. The reason for this is simple: the large sequence numbers make it impractical to predict which one will come first and why.

Another problem with replacing traditional transactions is that the current Ethereum consensus algorithm (Ethash) is designed to prioritize block order based on block height rather than chronological order. This means that if we were to replace all existing transactions in a given block, there would be conflicts between them and the new ones.

To illustrate this concept, let’s look at an example:

Suppose we have two transactions, A and B, with sequence numbers 1234567890 and 9876543210, respectively. If we were to replace transaction A with a replacement transaction C (which has the same sequence number as A), conflicts would arise because block C is processed after blocks D and E.

In summary, while Ethereum’s sequence number mechanism allows for some degree of transaction replacement, there are fundamental limitations that prevent this from happening on a large scale. The current consensus algorithm prioritizes block height over chronological order, making it difficult to consistently link change transactions.

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