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Bad example. IBAN ( https://en.wikipedia.org/wiki/International_Bank_Account_Num... ) for example has a two digit checksum that prevents this and similar simple typos.
How is it a bad example? Not everyone uses IBANs. And besides, big banks still have to deal with checksum-passing iban typos on a daily basis. IBANs only have two check digits.
Citation needed.
The future of currency ladies and gentlemen. This money is literally gone. Unrecoverable. Like he took the money out to a barrel and burned it. Only he didn't get any warmth out of it in exchange.
> Unrecoverable. I'm not very well versed in this stuff, but surely the tokens he sent are somewhere right. Like if you sent $500k to a bank but put the wrong account number in, the $500k would still go _somewhere_. It might be difficult to recover, but it's not like the money just disappears.
Imagine you ran a private currency called Mate Dollars (M$) for you and your mates to exchange with each other "off grid". You decide to introduce the concept of loans. A transaction which lends 1000M$ to MateA would look like this (in ledger[0] format):
2022-01-30 Loan to Mate A
Accounts:MateA 1000.00M$
Liabilities:MateA -1000.00M$
2022-02-01 Goods
Accounts:MateA -500.00M$
Accounts:MateB 500.00M$
Eventually Mate A will have to pay back his loan because the bank (you) will charge interest on any current liability:
2022-02-30 Loan repayment
Accounts:MateA -1000.00M$
Liabilities:MateA 1000.00M$
Now from inside the system, nothing was ever created or destroyed. But from outside the system (ie. the real world) it looks like money was "created" at "Loan to Mate A" and destroyed at "Loan repayment". From Mate B's point of view, Mate A always had that money. He doesn't know anything about the bank loan.
Between those two transactions, 1000 Mate Dollars existed, but it was just a ghost in the machine.
Replace "you" with Barclays Bank, "Mate Dollars" with Pounds Sterling and "you and your mates" with the public above and you now understand how "real" currency works. 97% of money we use is just a ghost in the machine between a bank creating it via a loan and the borrower paying it back.
So, you see, money appearing and disappearing from thin air is not a feature of crypto at all. It's just an illusion. It's what it looks like to anyone outside of the ledger (ie. everyone except the bank).
The ETH transaction is the equivalent of you (the banker) making a promise to Mate A to keep his money in an account that can never be accessed by anyone, including him:
2022-01-30 Silly transaction
Accounts:MateA -1000.00M$
Dungeon:MateA 1000.00M$
Unlike you, the Ethereum blockchain is incapable of ever breaking this promise.
It's not a great situation that this is possible but you could make a similar error for the same amount of money in your brokerage account and also have no recourse. It could be a typo in the ticker symbol, you could buy an option for the wrong month, you could buy instead of selling, you could enter an extra zero, you could not notice a multiplier for the futures, you could let a physical delivery future expire, etc…
If you buy the wrong asset, you can sell it back and get most of your money back. There is a low friction “undo” button.
No such thing in crypto.
If I was not 100% confident in performing this transaction (which I would never be) I would send $1 as a test before sending the other $499,999. Is there a technical reason preventing one doing a test transaction first?
Even then, whenever you’re dealing with large amounts there’s risk. E.g., early on in Bitcoin’s development a user lost a lot of Bitcoin by making a small test transfer, not realising that the change (their remaining balance) was sent to a new address in their wallet. But they were running a bootable Linux Distro from a CD and didn’t save the wallet back to a USB or other permanent storage. So they’ll never have acce…
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I still don't get WETH. What is the purpose of exchanging ETH, which is a token on the Ethereum blockchain, for WETH, which is also a token on the Ethereum blockchain (with the same nominal value)?
Pretty soon you'll be able to get paid interest on your WETH in WTF. WTF is a meta token based on a smart contract token based on Ethereum. With WTF, you never need to worry about where your money is. You can be assured that 100% of the time you try to redeem it you will stare at your screen for hours going WHAT THE FUCK
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>irregardless Friendly heads up - this isn't a word, and also happens to be one of those slip-ups that people will judge you extra hard for. Say either "regardless" or "irrespective".
It most definitely is a word irregardless of your feelings about it https://www.merriam-webster.com/dictionary/irregardless
It's not a great situation that this is possible but you could make a similar error for the same amount of money in your brokerage account and also have no recourse. It could be a typo in the ticker symbol, you could buy an option for the wrong month, you could buy instead of selling, you could enter an extra zero, you could not notice a multiplier for the futures, you could let a physical delivery future expire, etc…
But it is. If you buy the wrong asset, you can sell it back and get most of your money back. There is a low friction “undo” button. No such thing in crypto.
You can even end up owing more than your whole account is worth if margin is enabled.
In case you’re wondering what happened, from the thread: He sent ETH to the WETH contract, received WETH as expected. Then he wanted to do the reverse and sent WETH, but will not receive anything, because you're supposed to swap your WETH to ETH in exchanges like Uniswap, or call the "withdraw" function in the contract. For contracts that want to only work with ERC-20 tokens, you use WETH, which comes from a contract…
Wait. I'm not letting anyone off the hook for not knowing the above if they put $5 into something, let alone $500k. But even as a coder and someone who was deeply involved in crypto at one point (2011) I find it hard to make heads or tails of wtf this means. All I hear are a lot of acronyms and bizarre edge cases upon edge cases. It sounds like those arguments you'd hear between kids in junior high over magic cards o…
In case you’re wondering what happened, from the thread: He sent ETH to the WETH contract, received WETH as expected. Then he wanted to do the reverse and sent WETH, but will not receive anything, because you're supposed to swap your WETH to ETH in exchanges like Uniswap, or call the "withdraw" function in the contract. For contracts that want to only work with ERC-20 tokens, you use WETH, which comes from a contract…
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If caught quickly enough, like within a day, and the money is still in the receiving account, it is very easy to get your money back. As you say, scammers move money quickly, and they do so to avoid the money being refunded.
> As you say, scammers move money quickly Aren't European bank accounts tied to real world identities?