The question of rolling back the Ethereum network has been buzzing in the crypto community, and now, Tim Beiko, a lead developer at the Ethereum Foundation, has stepped in to clear the air. Think of this as your “Explain Like I’m 5” (ELI5) breakdown from Beiko himself, explaining why hitting the rewind button on Ethereum is simply not an option.

A Trip Down Memory Lane: Rollbacks in Crypto History

So, why are we even talking about rolling back Ethereum? Well, the recent whispers started after the massive $1.4 billion Bybit hack. When over 401,000 ETH vanished on-chain, some influential figures in the crypto world began suggesting a drastic measure: halt the chain and reverse those transactions.

But is this rollback idea something new? According to Tim Beiko’s X post, it’s not. He took us back to the early days of Bitcoin in 2010, when a software glitch led to the accidental creation of 184 billion Bitcoins in block 74638. Back then, fixing it was relatively straightforward for Satoshi Nakamoto; a simple software update was all it took.

Ethereum itself has faced this before. Remember TheDAO hack? This Ethereum protocol was hit hard, with hackers making off with about 15% of all the ETH it held. Fortunately, a built-in security feature at the time froze withdrawals for 30 days. This crucial window allowed Ethereum’s developers to actually rollback the chain, effectively creating a brand new, unaffected chain.

As Tim Beiko reminded us, this newly created chain became what we know today as Ethereum, while the original, rolled-back chain continued on as Ethereum Classic.

So, Why Can’t We Just Rollback Ethereum Now?

Beiko explains that reversing the recent hack on Ethereum isn’t as simple as hitting “undo.” He emphasizes the sheer complexity of today’s Ethereum network compared to the early days of Bitcoin. Back in 2010, Bitcoin was still in its infancy, with limited use and a price tag of just $0.07. In contrast, Ethereum now underpins a vast, real-world economy, powering countless transactions and applications daily.

Beiko stresses that attempting a rollback now would send massive shockwaves through the entire Ethereum ecosystem, causing widespread disruption. Furthermore, he highlights that, as suspected, the Lazarus Group, believed to be behind the hack, has already moved the stolen ETH, making a reversal even more complicated.

Unlike the situation with TheDAO, rolling back transactions now is fraught with complications. Beiko also reminds us of a past attempt to rollback Ethereum in 2018 related to issues with Parity’s multisig wallet. Even though that incident involved over 500,000 ETH, the Ethereum community couldn’t reach a consensus on a rollback, demonstrating the inherent difficulty in such a drastic action.

What About the Upcoming Ethereum Pectra Upgrade?

Although Tim Beiko didn’t directly mention it in his explanation, it’s worth noting that Ethereum is gearing up for the Pectra upgrade, expected to launch in April. This significant upgrade, which has been in the works for over a year, is actually scheduled to move into its testing phase very soon.

Some in the know are wondering if all this talk of a chain rollback could throw a wrench in the Pectra upgrade plans. While the official Ethereum roadmap is still on schedule, the crypto community’s reaction to the recent hack and the missing funds is a situation that still needs to be addressed.