This proposal aims to achieve security similar to federated sidechains and offers additional benefits to privacy and smart-contract-patching. The author of the proposal suggests that this approach would be useful for distributed exchanges. However, a concern was raised regarding how an escrow would know if a contract state is old and the operation is disallowed, without using a consensus mechanism like a blockchain. The example provided was a group of participants playing poker where one participant loses all their funds and presents an old contract state and a signed message following the contract rules to the escrow.