How Can a Smart Contract Be Designed to Handle a User’s Failure to Reveal Their Committed Transaction?

A smart contract can be designed to handle a non-reveal by implementing a time-lock and a dispute resolution or penalty mechanism. After a set time-out period, if the reveal has not occurred, the contract can automatically 'revert' the committed funds back to the user (minus a penalty) or 'slash' the staked collateral.

It can also allow a third party to submit a proof of non-reveal to trigger the penalty, ensuring the system remains responsive and does not lock funds indefinitely.