Wat?
I'm pretty sure that discrete log contracts have more use cases than just gambling, considering that the oracle can determine the signature in any way they'd like, and not leave it up to a random number generator of sorts.
How does the oracle go about to calculating the signature? Does it have a script of its own in, possibly, a UTXO of the multisig address?
Topic: [INFO - DISCUSSION] DLC (Discreet Log Contracts) (Read 143 times)
Honestly that just seems like escrow that on-chain doesn't look like escrow due to the usage of Schnorr signatures? Because what the oracle does, does not seem to be much different from a classical escrow with a 2-of-3 signature scheme, with a rather arbitrary broader definition of what the escrow/oracle does (ie. both escrows and oracle functionally merely decide to whom the money goes).
From my understanding one of the main differences between a traditional multisig escrow and DLCs is that in DLCs the oracle doesn't need to know (and probably can't know if no party directly tells them) who has taken which position of the contract. The oracle doesn't even need to know that someone has taken a position as it only provides a signature from a nonce, not involving any public key from the contractors. This makes it more private.There may also be legal differences: an escrower has control over funds, while an oracle, as it doesn't need to know the public keys, has not (so it is not necessarily a "crypto-assets service provider").
Again from my layperson's point of view, however, from a trust perspective there could be an attack equivalent to an escrow where one of the parties cooperates with the escrower to scam the other party. The cooperating party simply tells the oracle which position it took and bribes it. Of course the oracle can also take positions on a DLC platform and then manipulate the result.
Honestly that just seems like escrow that on-chain doesn't look like escrow due to the usage of Schnorr signatures? Because what the oracle does, does not seem to be much different from a classical escrow with a 2-of-3 signature scheme, with a rather arbitrary broader definition of what the escrow/oracle does (ie. both escrows and oracle functionally merely decide to whom the money goes).
I might be missing something tho.
To be fair they do address this issue and having the outcome determined by a off-chain source seems to be the whole point of DLCs.
I might be missing something tho.
Anyways, if the data feed is going to be determined by humans, there will be ways to manipulate the outcome. So the data feed needs to come from a source difficult to manipulate like a blockchain.
To be fair they do address this issue and having the outcome determined by a off-chain source seems to be the whole point of DLCs.
So it is good for gambling and trading methods which are no different than gambling.
This could be useful in many ways, one coming to mind is escrow, one could send some altcoin to an altcoin address and the txid in that blockchain could be used as the data feed for the oracle to release the funds to the borrower.
Though maybe this is already a thing?
Anyways, if the data feed is going to be determined by humans, there will be ways to manipulate the outcome. So the data feed needs to come from a source difficult to manipulate like a blockchain.
This could be useful in many ways, one coming to mind is escrow, one could send some altcoin to an altcoin address and the txid in that blockchain could be used as the data feed for the oracle to release the funds to the borrower.
Though maybe this is already a thing?
Anyways, if the data feed is going to be determined by humans, there will be ways to manipulate the outcome. So the data feed needs to come from a source difficult to manipulate like a blockchain.
since i have found nothing through the search function on this topic here, i hereby open a discussion and information thread about the dlc topic
in addition to the above explanation of what a dlc actually is, i would like to present you with a few slides that visualize the whole process again
currently the following 2 projects use the dlc's: https://atomic.finance/ and https://10101.finance/
Quote
A Discreet Log Contract (DLC) is a form of Bitcoin transaction which uses an oracle to execute a smart contract. Essentially, DLCs allow parties to place bets using the Bitcoin blockchain. In order to construct a DLC, two parties lock funds in a multisig address. These funds are only able to be spent when the oracle releases the specified information at a specified time. An oracle for a DLC can be any form of data feed, such as a website’s publication of the result of a sports match, or an exchange’s listing of an asset price.
https://river.com/learn/terms/d/discreet-log-contract-dlc/in addition to the above explanation of what a dlc actually is, i would like to present you with a few slides that visualize the whole process again
currently the following 2 projects use the dlc's: https://atomic.finance/ and https://10101.finance/
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