The distinctive feature of blockchain is its tamper-proof and transparent nature. This implies that information on the network is nearly impossible to edit or alter. Therefore, it is crucial to verify data before signing transactions, as once an operation is confirmed and added to a block, it cannot be reversed.
Is it possible to cancel a blockchain transaction? In general, cryptocurrency transactions cannot be edited or modified in any way. However, there is a chance to cancel a transaction before it is included in a block and added to the mempool waiting for its turn.
The confirmation time of a transaction varies depending on the functionality and network load of a specific blockchain. For example, in the Bitcoin network, this could take up to 20 minutes. Transactions may also be “stuck” in the network due to reasons such as insufficient transaction fees, network congestion, attempting to use recently transferred digital assets, or technical issues.
Therefore, the only way to cancel a transaction on public blockchains like Bitcoin or Ethereum is to do so within the window between signing and confirmation in the network.
How can a blockchain transaction be canceled? Canceling a transaction can be challenging as it usually requires specialized knowledge and an understanding of the steps involved in resolving the issue. Some blockchains may have built-in mechanisms for changing transactions. However, success in this scenario depends on various factors like operational status and network type. In private blockchains, canceling a transaction may be easier because the network is centrally controlled, and administrators theoretically have the authority to reverse operations.
Ways to cancel a transaction include using built-in mechanisms, sending a new transaction with the same details but higher fees to “push” the operation, contacting network administrators (for private blockchains), or seeking expert advice. The earlier action is taken to cancel a transaction, the higher the chances of reversing it. If, for some reason, an operation cannot be canceled in time, it may be worth contacting the recipient directly and requesting a refund.
If a user sends cryptocurrency to an invalid address, funds may either automatically be returned or lost forever according to the protocol.
Let’s explore how to cancel transactions in different circumstances.
Canceling a Transaction in MetaMask
In the MetaMask cryptocurrency wallet, there are two ways to cancel a transaction. The first and simplest method is to use the built-in function. To do this, click the “Cancel” button in the transaction window, then click “Submit” to sign the transaction, as shown in the screenshot below.
Another way to cancel an unconfirmed transaction is to send a “blank” transaction to your own address. This process is more complex. Note that each transaction has a unique identifier called a nonce. To cancel a pending transaction, you need to send another transaction to your address, specifying the nonce of the operation to be canceled. This is considered an advanced feature, so you need to activate it in the advanced settings to manage identifiers.
To set a nonce in MetaMask:
1. Click on the three dots in the top right corner, then select “Settings”:
2. Go to “Advanced”:
3. Scroll down and enable the nonce option by finding “Customize transaction nonce”:
4. Afterward, each transaction can be set with a nonce:
To “push” the desired operation, it is crucial to set a higher gas fee. The MetaMask team recommends increasing the fee by at least 30% compared to the previous transaction. Therefore, while the first method requires swift action, it is definitely the better choice!
Canceling a Transaction on the Bitcoin Network
To cancel a transaction on the Bitcoin network, it is usually necessary to check the status of the operation. This can be done in block explorers like Blockchain.com by entering the transaction identifier (TxID) in the search bar.
If an operation has received at least one confirmation, attempting to cancel the transaction is no longer meaningful. However, if the number of confirmations is zero, cancellation can be attempted. Users can choose their preferred strategy:
Replace-By-Fee (RBF) protocol – Allows for replacing the original transaction with a new one by increasing the transfer fee. Not all wallets support RBF, so it is advisable to check the parameters first;
Double-spending – In this scenario, cancellation can be attempted by trying to transfer a similar amount of BTC to your own address. Ideally, miners will process the last transaction. However, it is worth noting that most nodes and cryptocurrency wallets have built-in protections against such operations.
Regarding Canceling Ethereum Transactions
In Ethereum, to cancel a transaction, a new transaction with the same initial data but higher fees is usually created. This approach can expedite the processing of the new transaction while the previous one will not be recorded on the blockchain. Transactions can also be overwritten using a nonce. In this case, users initiate a new operation to their address and specify the nonce of the previous transaction.
In specific cases, smart contracts can be used to cancel transactions. Some contracts include functionality to cancel operations if certain conditions are not met.
Conclusion
Canceling a transaction requires prompt and decisive action. After all, most transactions on popular networks typically occur in real-time and are irreversible. This blockchain method is designed to maintain and enhance the security of decentralized networks.