Hi Stefan,
Tharwat Abdul-Malik

Hello and thanks for your comment!

I don’t think such a scheme is very likely to expose someone like Satoshi. It would, however, expose their ability to spend their coins. The scheme I’m describing does not introduce any necessity for someone to lose the coins they already own — they would simply need to demonstrate their their ownership through a transaction at least once within some period of time. Which, of course, can be automated.

If Satoshi (for example) no longer has the private keys to spend his coins, I doubt he’d mind them being reintroduced into the system. They were already lost to him. And remember, no technical solution must assume that humans are infallible. And in key management, we’ve definitely proven we’re not.

An idea like this is very unlikely to be implemented in Bitcoin due to various reasons, some of which I outlined. But don’t worry — newer generations of cryptocurrencies are coming, many of which will have these kinds of problems in mind from the get-go.

More in my next post.