What if we combine this idea with 2 of 2 multisig, and multisig address for each deposit?
1. User want to deposit a BTC in bitshares blockchain.
2. he generate a public key with bitshares wallet, where private key is stored into blockchain with our brand new "Enigma: Decentralized Computation Platform".
Even if all witnesses collude, this doesn't matter, because..
3. user generate own public and private key. He use his public key and key provided by bitshares network, to create a bitcoin 2 of 2 address.
4. he deposit bitcoins, and now bitshares netowork now, that bitBTC can be created with 100% collateral in real BTC
.
5. when user want to withdraw his bitBTC and turn them into real BTC, he has to initiate this with bitshares wallet.
6. proper amount of bitBTC are destroyed, and then and only then bitshares network signs transaction.
7. user have to sign this withdraw with his private key.
Previously I had an idea, that private keys, could be spread among all witnesses. This actually would almost not make a difference, because even if the witnesses collude, they cannot do nothing without second private key, which user has. With this approach problem is with situation, where witness actually has a second private key, because he made a deposit. In that case, he could withdraw bitcoins, without destroying bitBTC.
So, if witnesses can together sign a transaction, without knowing a 1st private key, which were used, this would mean, that ... this could work?