It has to be reversible.
I'm not technical so I can only come up with ideas, but can't the blockchain hold onto the private key of the BTC address where nobody else can see, and use it to unlock it whenever the trader tries to redeem his/her real BTC?
I was imagining a cloakroom type of mechanism, where you hand over the receipt when you go home, and you get your coat back on the way out.
freebie has been playing with this concept for a while for its approach to decentralization of *coin transactions, the technology for this solution does not YET exist, but is theoretically possibly.
this is one of the issues we will be tacking going forward, and would love any suggestions
Okay, now I understand that locking away BTC using the blockchain is theoretically possible, but not practically possible at this moment.
Either way, the current "flooding" of BTC IOU is not an ideal situation.
So, I've given it a thought and came up with another idea.
Let me know what you think.
How about we use proof-of-burn to burn real BTC to allow the blockchain to issue a counterparty-risk-free BLOCKCHAIN.BTC, which is a pseudo-BTC that uses the BitShares Blockchain?