Settlement of DLCFD
On December 17th, 2020, Roman and I (Nadav) entered into a special kind of Discreet Log Contract (DLC) called a Contract for Difference (CFD), or Discreet Log Contract for Difference (DLCFD) for short. Roman entered into the CFD with $22.80 …
Settlement of Volatility DLC
On December 4th, 2020, Chris and I (Nadav) entered into a Discreet Log Contract (DLC) speculating on the BTC/USD price. Specifically, I took the position that over the course of a week the price would move significantly, up or down, …
Settlement of Election DLC
On September 8th 2020 Nicolas Dorier and I (Chris Stewart) entered into a Discreet Log Contract predicated on the outcome of the US presidential election. I wagered 0.6 BTC on “Democrat_win”, while Nicolas Dorier wagered 0.4BTC on “Republican_win”. The total …
Discreet Log Contracts Part 2: How They Work [Adaptor Version]
In our last Discreet Log Contract post, we explored the problems faced by most existing smart contracts as well as what Discrete Log Contracts (DLCs) are at a high level. In this post we will detail what exactly what it …
Transferring In-Channel Lightning DLCs
Transferability of Discreet Log Contracts (DLCs) is of major interest due to the capital inefficiency inherent to contracts which do not rely on custody or counter-party trust. In other words, DLCs require all parties to lock up the maximum collateral …
DLC Key Management Pt 3: Oracle Public Key Distribution
Discreet Log Contracts enable non-custodial speculation directly on top of the bitcoin blockchain. When protocols are non-custodial, it’s important for users to understand how private keys are handled for the duration of their interaction with the protocol. This blog post …
DLC Private Key Management Part 2: The Oracle’s private keys
Oracle Private Key Management Discreet Log Contracts enable non-custodial speculation directly on top of the bitcoin blockchain. When protocols are non-custodial, it’s important for users to understand how private keys are handled for the duration of their interaction with the …
DLC Private Key Management Part 1
Discreet Log Contracts enable non-custodial speculation directly on top of the bitcoin blockchain. When protocols are non-custodial, it’s important for users to understand how private keys are handled in the protocol. With DLCs, there is the potential for millions of …
Schnorr Applications: Scriptless Scripts
In this post we continue our survey of Schnorr-enabled schemes and their applications to Bitcoin by exploring the exciting world of Scriptless Scripts which are enabled by a signature scheme called Adaptor Signatures. I will note that while it is …
Discreet Log Contracts in VR!
This weekend Ben gave a talk at Reckless VR about the Basics of DLCs. He talked about a wide range of topics related to DLCs from the oracle problem, to how DLCs work, and even about what it takes to …