What's wrong with DLCFDs? - page 2. | Bitcointalksearch.org

davis196

hero member

Activity: 3164

Merit: 937

Quote from: antidamnation on July 16, 2024, 08:10:35 AM

I recently read about something called DLCFD: Discreet Log Contract for Difference, which aims to stabilize Bitcoin's price. However, I haven't seen much interest in it. Some people have implemented it, like ItchySats, but I don't understand why no one seems to care! It benefits both parties involved—the one betting on the price and the one getting a stabilized Bitcoin. I know there's a trust issue with the oracles, but there are ways to handle that too. Sorry if this is a dumb question, I'm just a newbie trying to figure it all out.

You "read something" but you don't provide link to the source of information. Why?
A contract for a difference(or CFD) is term from the financial markets. Trader A and Trader B make a CFD about an asset with a base price of 100. When the asset price does from 100 to 130, trader A pays 30 units to Trader B. If the asset price drops down from 100 to 70, trader B pays 30 units to trader A. This is the most oversimplified way for me to explain this. It's basically a way for some traders to hedge the risk of drastic price movements. I don't know anything about "discreet log" contracts for a difference and I don't know anything about this ItchySats project. OP, perhaps you could elaborate more on what you know about ItchySats.

Faisal2202

hero member

Activity: 1414

Merit: 513

Payment Gateway Allows Recurring Payments

Quote from: 348Judah on July 16, 2024, 10:38:43 AM

Don't get him wrong OP, what he is trying to let you know is that bitcoin price cannot be stabilized with the use of PoW, same way we cannot change this as well from PoW to PoS, never expect that bitcoin price get stabilize, what we are considering about bitcoin is the fact that it's a volatile digital currency and in this are many getting their own respective opportunities in it for their profitable investment and adoption, no system, network or program that can centralized bitcoin or stabilizes its prize.

You are right it can't be stabilized, as a matter of fact, nothing in the world is stabilized anymore. But some are less volatile while some are more. BTC is highly volatile because its decentralized, and its price is influenced by demand and supply, and the fear and greed among people. If people think its buying time or to fill their bags, eventually its price will increase, and once they think collectively that its selling time the price will decrease.

This factor makes it highly volatile incompared to fiats because the demand and supply of fiats can be managed by the government with certain fiscal policies but some are failed to do that either and there local currency is now out of there hands due to there own vulnerable policies. In short, you will find a lot of fiat currencies as well, which are highly volatile.

348Judah

hero member

Activity: 714

Merit: 521

Don't get him wrong OP, what he is trying to let you know is that bitcoin price cannot be stabilized with the use of PoW, same way we cannot change this as well from PoW to PoS, never expect that bitcoin price get stabilize, what we are considering about bitcoin is the fact that it's a volatile digital currency and in this are many getting their own respective opportunities in it for their profitable investment and adoption, no system, network or program that can centralized bitcoin or stabilizes its prize.

antidamnation

newbie

Activity: 9

Merit: 0

first of, thanks a lot for your reply.

Quote

you can not have smart contracts

So are you suggesting that this whole DLC thing is a scam or something along those lines?

Quote

when it fails

sorry as I said I'm just a newbie trying to figure it. I should probably read a lot more. but I thought there are ways to use multiple Oracles so that doesn't become a nightmare.

and no I don't have anything to do with ItchySats, actually this was my own(possibly terrible) idea, when I searched, that came to my attention.

tranthidung

legendary

Activity: 2310

Merit: 4085

Farewell o_e_l_e_o

Quote from: antidamnation on July 16, 2024, 08:10:35 AM

I recently read about something called DLCFD: Discreet Log Contract for Difference, which aims to stabilize Bitcoin's price.

Bitcoin is a Proof of Work (PoW), mineable blockchain and you can not have smart contracts with interaction of Oracle to stabilize its price. With altcoins, you can but there are complicated mechanism and many factors that can affect the price. Oracle is not like a magic stick to do everything. When it works, you can see it magical but when it fails, you will see nightmare and death spiral too.

Quote

However, I haven't seen much interest in it. Some people have implemented it, like ItchySats, but I don't understand why no one seems to care!

It's my first time I have ever known of ItchSats, is it a project you're working with as a content creator or brand shiller?

Initially I feel it like this, and did not want to reply your post but let's buy benefit of the doubt.

antidamnation

newbie

Activity: 9

Merit: 0

I recently read about something called DLCFD: Discreet Log Contract for Difference, which aims to stabilize Bitcoin's price. However, I haven't seen much interest in it. Some people have implemented it, like ItchySats, but I don't understand why no one seems to care! It benefits both parties involved—the one betting on the price and the one getting a stabilized Bitcoin. I know there's a trust issue with the oracles, but there are ways to handle that too. Sorry if this is a dumb question, I'm just a newbie trying to figure it all out.

Topic: What's wrong with DLCFDs? - page 2. (Read 325 times)