However, Ethereum (ETH) mining pool Sparkpool has now indicated that the user is getting back a good portion of the ETH that was mistakenly sent. Via a tweet on March 11, the mining pool indicated published details or the refund.
In February, an ethereum user mistakenly paid 2,730 ETH worth about $365,800 in today’s price as miners’ fees while making a transaction on Ethereum. The user must have confused the space for miners’ fee for that of the transaction amount hence the heavy fees.
When sending ether, a user is required to send a network fee or miner fees normally collected by the miners who add the transactions to the block they are mining. Users are encouraged to send higher gas fees for their transactions to be processed faster since miners will give it more priority.
However, the fee sent the ethereum user last month was abnormally huge. According to crypto news outlet Coindesk, Sparkpool said it received an email from an unnamed user on Feb. 25 regarding the incident. The sender who represents a blockchain firm in South Korea claimed they mistakenly added the 2,100 ETH fee
Meanwhile, Sparkpool already froze the payout of the huge miners reward as it suspected it could be an error from a user.
After the user confirmed the wallet address by sending a small transaction to Sparkpool, negotiations ensued and the user agreed to split the fund with the mining pool. He reportedly sent a transaction with the message,
“Thank you SparkPool and your miners for helping us to recover our loss, we are willing to share half of 2,100 ETH with the miners to thanks the miners’ integrity.”
The 2,100 ETH mining fee represented the largest of the three transaction fees sent to the miner. According to data form ethereum block explorer Etherscan, Sparkpool has returned 1,050 ETH to the sender.
Mistakes on public blockchains like ethereum can be fatal as they are irreversible. If, for instance, a user sends ETH into an invalid address, it gets lost. This brings up thoughts of the Parity Wallet incident where a user mistakenly converted the wallet library into a smart contract and deleted it causing wallet users to lose 513,774 ETH (valued then at $152 million).
As Smartereum reported, the CEO of Parity technologies Jutta Steiner has said that such error will not be possible after Ethereum’s latest hardfork. While making a case for the reversal of the ‘Parity freeze’, Steiner explained that a feature known as Create 2 was programmed in the ethereum blockchain to prevent a repeat of that or similar incident.
Blockchain like EOS, however, allows for such transactions to be reversed. The blockchain has courted a lot of criticism due to the power of its governance committee to reverse transactions and freeze accounts.
At the time of writing, ether is trading at $136 to the USD slightly down from its price at the start of the week, according to ETH USD charts on Tradingview. ETH has failed to break the $400 mark after several attempts in the past few days.
Observers are wondering, when will ETH go back up, while others are asking how low will ethereum go. Let us know your take in the comment section below.