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August 3, 2022

Details on The Failed $350k ETH Transaction

Transactions made via a blockchain are remarkable for being irreversible. While most of the time this functionality might be helpful, it can sometimes become problematic. For example, a recent development reveals that $350,000 (or around 216 ETH) was spent on transaction fees, and the transaction ultimately failed.

The address that paid the significant transaction fee is connected to the recent Nomad bridge attack, which deleted nearly $200 million from the protocol, according to blockchain explorer Etherscan.

The sending party transmitted a very modest amount of Ether to the receiving address on Monday, as shown in the picture above, however, the transaction eventually failed.

While the network presently uses a Proof-of-Work (PoW) consensus mechanism, Ethereum (ETH) has not yet migrated to the Proof-of-Stake (PoS) consensus mechanism. The speed at which transactions are handled—only 30 transactions are executed in a second—is a significant drawback of the PoW technique.

A user who wants to speed up a transaction may do so by adding gas, which raises the transaction price that must be paid. The user will always lose access to that cash if they incorrectly set the amount spent as the gas charge. In the aforementioned transaction, the sender (Nomad hacker) probably injected gas to expedite the transaction, spending close to 216 ETH in the process.

While it is true that blockchain transactions cannot be undone, it is also important to remember that block miners get fees as incentives. Therefore, if a strategy is made to recover the $350,000, Etherscan will be used to get in touch with the transaction’s miner as the fee was awarded to block 15259103.

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It’s interesting to note that in September 2021, it was reported that a transaction in which a transaction fee of $23.5 million was paid was reimbursed to the sender after the miner was contacted.