110 / Discreet
A new primitive to use Bitcoin across other networks using oracles with limited abilities.
Episode notesEdit these notes…
- DLC community Telegram: XXXXX link
- With @AkiBalogh
- In management consulting, finance, AI SEO content
- Vision for a multichain world
- The tech primitive came from @tdryja
- DLC is a IF-THEN-ELSE machine for choosing BTC outputs
- Input from Alice, then lock it. Oracle runs, sends back to Alice. Use this for bridging to another network.
- Versus competition
- Comparing to bridges (“multi key wallets :-)”)
- Comparing to HTLC like Lightning channels
- The benefit of DLC is the very simple outcome
- Bitcoin security model “Fort Knox holding gold, good for good, bad for liquidity”, ETH model “locked in a house, but windows are open, but you know your neighbors”
- Although Bitcoin is the largest digital asset, it cannot be used in DeFi without first transferring it to a custodian or a bridge. However, custodian failures and bridge hacks have led to over $140Bn in losses.
- http://DLC.Link utilizes Discreet Log Contracts, invented at MIT by the co-creator of the Lightning Network, to provide a trustless bridge to DeFi on Ethereum without centralizing or pooling assets.
- We will be launching dlcBTC, a non-custodial wrapped Bitcoin, in April 2024. dlcBTC lets Bitcoin holders earn yield on their BTC in popular DeFi protocols like Curve and AAVE.
- Will’s DLC explainer: the oracle in a Discreet Log Contract (DLC) essentially determines which execution path the contract takes by signing a particular outcome. The oracle does not execute the contract itself nor handle the funds; it merely provides the information that activates one of the prearranged paths in the contract. This design limits the oracle’s role to that of an information provider, reducing the trust required in the oracle’s actions regarding the contract’s execution
- Monodraw software: https://monodraw.helftone.com/