U.Today - The RippleX engineering team yesterday a significant update to the XRP Ledger, aiming to bring a heightened level of trust and safety to digital asset transactions.
Known as the Clawback feature, this will be part of a proposed amendment, XLS-39, to the ledger's existing infrastructure.
As the name suggests, this feature allows businesses that issue digital tokens or assets to take back those assets under special conditions, such as when an account is lost or when fraud is detected. In simple terms, it adds a layer of safety by giving the issuer more control over their tokens after they've been distributed.
The Clawback feature aims to balance the needs of both the issuer and the token holder. For example, if you own tokens and get locked out of your account, the business that issued those tokens could use Clawback to move your tokens to a new, secure account. This adds a safety net for users, helping prevent the loss of assets.
This feature could be particularly useful for financial institutions and other regulated businesses. It offers an additional tool to meet increasingly strict rules around online security and trust. In cases of fraud or other malicious activities, issuers can swiftly take action by reclaiming the assets, reinforcing trust and integrity within their ecosystems.
The Clawback feature is optional and must be specifically activated. It also can't be applied to XRP, the digital currency native to the . Once activated for certain assets, the setting is permanent and cannot be undone.