Can you cancel or reverse a Bitcoin transaction?

a month ago
Bitcoin transaction
Bitcoin transaction

Let's say you've made a mistake and sent your BTC to the wrong address. After googling for a solution and reading FAQ sections on Coinbase and Blockchain, you will most likely decide that your transaction is lost forever. But, in truth, you still have time to reverse it.  

Recently Blenderwallet.io (wallet from the creators of the largest bitcoin mixer) added a new feature - "Transaction discarding" based on RBF(Replace By Fee) protocol. 

Feature of canceling bitcoin transactions
Feature of canceling bitcoin transactions

RBF was created to prevent issues with stuck transactions and as a way out for someone who had sent funds to the wrong address or to scammers.

How does it work? 

Here you can see a Ledger wallet reporting incoming transaction.

Bitcoin transaction in Ledger wallet
Bitcoin transaction in Ledger wallet

And here you can see what happens if you press "Discard transaction" 

Report on the canceled transaction
Report on the canceled transaction

Have you ever seen a cancelled transaction in a blockchain? 

The feature is only just a click away in the blenderwallet.io  interface, so you don't have to be an expert to manage your funds. 

But, like any good technology, RBF has a downside that can be used by dishonest users.

So here’s an important tip: always wait for at least one confirmation of the transaction. 

Canceling a transaction in blenderwallet.io
Canceling a transaction in blenderwallet.io

Here are some excerpts from Blender Wallet FAQ:

  • You can discard an unconfirmed outgoing transaction by replacing this transaction with another one, using the RBF mechanism.
  • Your own address becomes the output of a new transaction, so the funds are returned to you, minus the network fee.

You cannot discard a transaction if:

  • The transaction was not initiated by you, including if the transaction is incoming for you. 
  • It has already been confirmed (has at least one confirmation).
  • The transaction was not marked with the RBF flag or its amount is not enough to increase the network fee.

Discarding a transaction might not succeed like any other RBF replacement. The initial transaction can be confirmed and the new one be rejected, if, for example, the miner takes the initial transaction into the block before the second appears in the network. 

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It's important – you cannot discard a transaction if it has already been confirmed at least once. You can only discard an unconfirmed outgoing transaction.

This feature will help you to manage your funds properly and keep them safe.

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