The under is a direct excerpt of Marty’s Bent Difficulty #1286: “The primary mainnet DLC on Lightning has been executed.” Join the e-newsletter right here.
It has been precisely 11 months and two days since we wrote about discreet log contracts (DLCs) on this rag. For these of you who’re a bit rusty or utterly ignorant with reference to what a Discreet Log Contract is, it’s a particular sort of bitcoin transaction that executes a sensible contract with info offered by an oracle.
For instance, if two folks wish to wager on the end result of Saturday’s NBA contest between the 76ers and Grizzlies they might create a DLC by locking up funds in a multisig deal with, pre-constructing final result transactions — if the 76ers win ship the sats to this deal with, if the Grizzlies win ship the sats to this deal with — and selecting an oracle, an organization that publishes ultimate scores, e.g., Statmuse. The oracle supplies a hash of the end result of the sport. When the sport is over on Saturday the DLC may very well be closed out by the winner of the wager by signing the transaction that strikes the sats within the good contract to their deal with utilizing the hash of the end result offered by Statmuse.
A sports activities wager is however one instance. People may resolve to wager on the worth of bitcoin, the hash price at a sure block peak, the temperature on a selected day, and even create peer-to-peer derivatives just like the crew from ItchySats has completed. If you happen to freaks have been following our protection of DLCs all through the years, you most likely know that your Uncle Marty is fairly bullish in regards to the potential for DLCs to disrupt numerous industries. Nevertheless, up to now, one of many issues limiting DLCs from hitting a important tipping level is the truth that they’ve solely been performed on chain. Contemplating what number of potential functions that would leverage DLCs and what number of finish customers they might probably contact, the considered scaling this use case on chain appears untenable, particularly if one considers the potential of durations of elevated transaction charges that make sure DLCs uneconomical. To me, it is sensible for DLCs to function on Layer 2 protocols, just like the Lightning Community or Fedimint, which have comparatively low cost charges.
Nicely, the Crypto Storage crew introduced that they efficiently opened and closed a Lightning channel with an embedded DLC channel on mainnet. Per their blogpost, it seems to be just like the Crypto Storage crew forked the Lightning Improvement Package so as to add assist for splitting a Lightning channel, which has enabled them to create a DLC channel inside a Lightning channel. From there, they have been in a position to create particular transactions — a break up transaction and a glue transaction — that might allow the completely different events engaged in a DLC to replace the state of their contract inside the Lightning channel and the DLC channel with out giving one of many events an unfair benefit, which was one of many large design challenges that was beforehand unsolved. It is a huge step in the best route.
With that being mentioned, the Crypto Storage crew is warning that this implementation is in its very early days and shouldn’t be thought-about steady. In reality, they warn that you’re more likely to lose your sats should you attempt to execute this on mainnet. Nonetheless, that is unimaginable to see. Shoutout to the Crypto Storage crew and those who helped them out for pushing this ahead.
Slowly however absolutely, as each naysayer on the planet is claiming bitcoin a failed Ponzi scheme, those that acknowledge the revolutionary nature of the protocol are constructing the instruments that make bitcoin extra helpful for people the world over.
Supply: Bitcoin Journal