[solatic]

Will it? Half the point about how blockchains work is that dropping blockchains which are shorter than mainline is standard operating procedure and completely ordinary.

People holding cryptocurrency would notice an illegitimate takeover of the blockchain right away because they'd be trying to spend cryptocoin which, all of a sudden, they no longer have. But regulators aren't trying to tally up business inventory on their own ledger so that they can send it off to other parts of the business and all of a sudden that kind of logistics fails for the regulator because of what you called "funny business". A regulator is a passive observer, and a passive observer can't detect funny business without actively auditing the blockchain against their perceived notion of whether the current state of the blockchain is normative... which is a very difficult problem indeed to do at scale, one which regulators today haven't yet been able to really automate, even with the relative certainty of a database (which a regulator could order regular dumps of, for analysis, if it wanted to).

[MatthewKernerMS]

Caesar consensus, which is referenced in the Coco technical whitepaper, seeks to address the problem you mention.