I like this proposal - it's simpler than ours and the stateless design is really elegant.
But it's not flexible enough for our use case. Two main concerns:
1. Doesn't support imported wallets
2. No good UX if passkey is deleted. User would have to create a new passkey/wallet, then decide how to transfer funds - consolidate all UTXOs in one transaction and lose privacy? Or transfer UTXO by UTXO and lose funds to fees?
But it's not flexible enough for our use case. Two main concerns:
1. Doesn't support imported wallets
2. No good UX if passkey is deleted. User would have to create a new passkey/wallet, then decide how to transfer funds - consolidate all UTXOs in one transaction and lose privacy? Or transfer UTXO by UTXO and lose funds to fees?