Discreet Log Contracts are an old concept in this space at this point, proposed by Thaddeus Dryja (co-creator of the Lightning Network protocol) in 2017. DLCs are a smart contract structure designed to address three issues with contract schemes prior to the proposal: firstly the scalability of the smart contract itself, which required larger on-chain footprints for a larger set of potential outcomes; secondly, the issue of getting data external to the blockchain “into the blockchain” for contract settlement; and lastly, the privacy of users of the smart contract.
The basic scheme is very simple, two parties create a multisig address composed of the two of them, and choose an oracle. After doing so, they create a set of Contract Execution Transactions that interact with the oracle. Say the oracle is announcing the price of bitcoin, and the participants are betting on the price of bitcoin, what the oracle does is publish a set of commitments to the messages it will sign in order to
We współpracy z: https://bitcoinmagazine.com/technical/dlcs-evolving-to-meet-institutional-needs
