How to Cancel a Cryptocurrency Transaction

One of the distinguishing features of the blockchain system is that once data is recorded in the open ledger, it cannot be changed or edited. This feature fosters trust between users and decentralized trading platforms, while also preventing fraud.

But what if you need to cancel a transaction after it has been added to the block for a valid reason? In some cases, this is indeed possible. Today, we’ll discuss these exceptional circumstances.

Can Crypto Transactions Be Canceled?

Generally, no. The blockchain is designed so that once a transaction is published, neither users nor intermediaries can alter it.

The practical way to cancel a transaction after its initiation is to intercept it before it is recorded in the blockchain.

After creating a transaction and setting a fee, it is sent to the mempool for processing. Here, it can remain for up to 20 minutes, depending on the blockchain’s current load. During this time, users might be able to cancel it.

Several factors affect the transaction processing speed besides network load:

• Low transaction fee
• Attempt to use recently transferred digital assets
• Technical failures

These issues can cause a transaction to “hang” before being added to the block, providing a real opportunity for cancellation.

How to Cancel a Transaction in the Network?

To cancel a transaction, users need specialized technical knowledge and skills, making it a challenging task for beginners. In such cases, consulting professionals is recommended.

Here are ways to cancel a blockchain transaction:

1. Using built-in network mechanisms. Some blockchains have special features allowing users to cancel erroneous operations. For example, MetaMask offers a “Cancel” button in the transaction window. However, this is not always straightforward — success depends on the transaction status and network type.

2. Sending a new transaction with a higher fee. By sending a new transaction with identical details but a higher fee, it can “push” the original transaction in the queue. Miners prioritize transactions with higher fees as they directly earn from them.

3. Contacting the network administrator in private blockchains. Private blockchains have centralized management, and issues can theoretically be resolved through a controlling entity. However, this method is not foolproof, as the administrator’s power is limited and might not override blockchain conditions.

How to Cancel a Bitcoin Transaction

First, check the transaction status via Blockchain.com using the transaction ID. If the transaction has been confirmed by even one network participant, further cancellation attempts are futile. If it is still awaiting confirmation, there is a chance for success.

Users can use these strategies:

• Replace-By-Fee (RBF). This method involves creating a new transaction identical to the old one but with a higher fee. This incentivizes miners to process the new transaction faster. Note that not all wallets support RBF.
• Double Spend. This involves sending an identical amount of Bitcoin to your address to try canceling the original transaction. If lucky, miners might process the last transaction. Most network nodes and crypto wallets have built-in protections against such operations.

How to Cancel an Ethereum Transaction

Canceling an Ethereum (ETH) transaction can follow the RBF principle used in Bitcoin by creating an identical transaction with a higher fee for faster processing.

The nonce feature can also help. This involves rewriting the transaction by sending an identical one to your address, retaining the identification number. In extreme cases, smart contracts might help cancel a transaction in Ethereum. If the contract conditions are violated, they have the right to annul it.

Conclusion

Although blockchain generally does not allow transaction cancellations after publishing, there are several ways to achieve this. They all hinge on the ability to “intercept” the transaction between its signing and network confirmation.

In Bitcoin and Ethereum, this can be done, with Bitcoin (BTC) being somewhat easier due to its slower transaction processing speeds. This foresight from developers has left a small “window of opportunity” for users needing to cancel transactions.

You might like our articles “The Evolution of Digital Transactions: Devices and Systems in Wallets” and “Must-Watch Crypto Projects for Summer 2024”.

The easiest way to buy, sell or exchange coins is to use SimpleSwap services.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.