Instead of cold storage a lockdown mode address or Frozen Storage address could be added to bitcoin.

This is how it would work.

If person A wants their coins locked down more secure than cold storage they simply generate an address which has a special prefix on it (maybe the number 4 which would mean segwit + frozen storage).

Anytime a transaction is sent from an address with this prefix on it they can be a delay of time i.e: (3 days) before the miners mine it and give it a confirmation.

This way if attacker gets Person A's private key and attempts to steal their coins A can veto the spend before 1st confirmation as they will be able to detect it and the transaction will be reversed and not mined. They will have 3 days or so to detect it too.

If attacked and person A reverses the payment, the attacker may attempt transfer again or reverse A's attempts to transfer coins out of their locked storage and end up in vicious cycle where the coins can't be spent by either party resulting in a stand-off / DOS.

If this occurs an annual or 6 monthly hard fork can correct the issue by:

Person A legally applying for it, proving they are the true owner and generating a new address where the coins in stand-off will be moved to.

The fact these hard forks are scheduled and occur rarely will minimize disruptions.

Miners can confirm the reversals given are correct by confirming the details from both the bitcoin.org site and the results of court decisions on government websites. These sites will have to be as secure as humanly possible.

A bad actor can not abuse this because:
1. These occurrences will be rare.
2. The changes made will be verifiable.
3. There will be time to confirm everything from the update sent out to the validity of the changes made.
4. Only coins proven to be in a lockdown mode/frozen storage address AND are in a standoff for more than 12 months will be changed.
5. Other safe coins put into lockdown mode can be transferred to a new lockdown mode address before 12 months to prevent any bad actor abusing this system as then it won't ever be considered for changes.

Decentralization/Mining concerns:
1. Miners should be paid a fee for the hardfork update for each tx by those whose coins entered into a standoff.
2. Miners would not be incentivized to mine a lockdown mode address early as they could earn more in the event of a standoff and they will earn an tx fee anyway once the time delay expires.
3. Prevention of abuse prevents any harm to decentralization.
4. Having to move coins from one lockdown mode address to another before 12 months does not mean now we have to do this to prevent a bad actor from abusing this system, it actually means we now have a way to prevent any bad actor from stealing our coins which is more secure and cheaper than hardware wallets and more secure than paper wallets.
5. If a rogue miner confirms the transaction before the delay period the other miners can check this and reject adding it to the blockchain before the delay period has expired.

Benefits of doing this:
Ultra secure.
Solves custody problem which paves the way for bitcoin ETF approval by SEC.
Eliminates problem of hard forks taking back coins from legitimate users who unknowingly purchase stolen cryptocurrency from an attacker.
Even if private key is obtained coins are still safe.
Exchanges could offer users ability to store majority of their coins in this mode improving security and seriously minimizing damage from attacks that somehow manage to get an exchanges cold wallet private key.
Cheaper than hardware wallet, many people can not afford hardware wallets and if bitcoin is truly to become global reserve currency costs of securing coins must come down.
More secure than hardware wallet, if someone steals your hardware wallet or recovery seed they still won't be able to steal your coins provided you have a backup.

Why is this more secure than cold storage:
A hardware wallet or recovery seed can be stolen, PIN can be stolen too via monitoring software/hardware.
A hardware wallet or recovery seed can be forcefully removed from you and you can be threatend to reveal your PIN to an attacker.
A paper wallet can be stolen or forcefully removed from you.
A paper wallet's keys would eventually be stored on a system that is impossible to 100% verify the clean state of. (Even a clean install does not mean a clean state, they are many ways a computer can be compromised.)
TEMPEST attacks(leaks of emanating emissions) are theoretically possible on both paper wallets and hardware wallets without adequate shielding installed and tested.
Shielding from these attacks may be inadequate.
Even when adequately shielded it is not 100% known if they exists unknown or non-public ways to still be able to read this emissions.
User mistakes happen too in any step of a security process.
Hardware wallets can suffer from attacks on firmware, on chip etc... all that may be needed is physical possession without needing PIN.
Insider attacks are still possible.
Some form of 2FA before sending a transaction is not as secure as frozen storage/lockdown mode because the 2FA device can be compromised or stolen.

NONE of these security concerns exist with frozen storage/lockdown mode.

How could this be used:
Well basically some of your coins would be in cold storage, some in frozen storage/lockdown mode and some for use on your phone or on LN or in a wallet where an exchange/website manages the security of the funds.

If someone attempts to steal coins then it simply wont happen, this will shutdown the majority of stealing/hacking of peoples crypto.


This situation would be a rare occurrence as coins located at lock down mode addresses would be unlikely to be attacked.


edit: please read entire thread as more concepts added later

edit:
i was in such a rush when i wrote this all..

it should also be noted that in decentralization/mining concerns section:


"4. Having to move coins from one lockdown mode address to another before 12 months does not mean now we have to do this to prevent a bad actor from abusing this system, it actually means we now have a way to prevent any bad actor from stealing our coins which is more secure and cheaper than hardware wallets and more secure than paper wallets."

this manual transfer before 12 months is actually not neccesary to prevent abuse because as described in the "A bad actor can not abuse this because:" section

4. Only coins proven to be in a lockdown mode/frozen storage address AND are in a standoff for more than 12 months will be changed.

so this is not a concern and means less to worry about when implementing this

edit:
it should also be noted that initially just the bitcoin etf account awaiting approval by the SEC needs this special feature as it does bring complications of application process for hardfork in the ultra rare situation that this is needed.

instead of a legal/court process it could be just an online application process and only a court decision given there are 2 or more people claiming legitimate ownership of the coins (this is extremely extremely unlikely as the attacker probably won't file for ownership or be prepared to identify themselves via legal means as they would risk prosecution).

hope that helps...

edit: rememember read entire thread so you understand thoroughly the concept

edit: please if voting NEVER state reasons why