Mr Hearn's secure-ID scheme similarly relies on a block chain and on rewarding miners who keep it up to date. An identity would be established by performing a transaction in which no Bitcoins are transfered from the owner to another named party. Instead, the owner would donate a sumsay, $200 worth of Bitcoinsthat the first miner to approve a block with this transaction in it would get as his mining fee. (Since the winning miner is always revealed at random, the owner cannot simply redirect the virtual cash back into his account.)
So is this ID only usable with parties who have seen the "sacrifice transaction" publicly announced on the network?, otherwise couldn't the id seeking person just make a deal with some miner or pool to not announce this transaction, mine it and get his $200 back minus a fee for the miner.