In light of the recent hack: what does everyone think of the idea of
creating a new address type that has a reversal key and settlement layer
that can be used to revoke transactions?

You could specify so that transactions "sent" from these addresses must
receive N confirmations before they can't be revoked, after which the
transaction is "settled" and the coins become redeemable from their
destination output. A settlement phase would also mean that a transaction's
progress was publicly visible so transparent fraud prevention and auditing
would become possible by anyone.

The reason why I bring this up is existing OP codes and TX types don't seem
suitable for a secure clearing mechanism; Nlocktimed TXs won't work for
this since you can't know ahead of time when and where a withdrawal needs
to be made, plus there's still the potential for key mismanagement; Similar
problems with OP_CHECKLOCKTIMEVERIFY apply too – unless you keep a private
key around on the server which would defeat the purpose. The main use case
here, would be specifically to improve centralized exchange security by
making it impossible for a hot wallet to be raided all at once.


Some existing background:
-- Proposed the basic idea for a time-based clearing house but using
blockchains directly, this is a much better idea than my own. -- My original paper written in 2015 which proposed a
similar idea for secure wallet design but implemented using time-locked
ECDSA keys. Obviously a blockchain would work better for this.

Other -- if the idea has already been brought up by other people, I
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