DLCs On Lightning And Bitcoin Smart Contracts - Bitcoin Magazine

[ad_1] <div>The beneath is a direct excerpt of Marty's Bent Concern #1286: “The primary mainnet DLC on Lightning has been executed.” Join the publication right here.<div class="m-detail--body-item m-detail--body-item-inline"><figure class="l-inline tml-image m-detail--tml-image--inline" itemscope="" itemtype="http://schema.org/ImageObject"><phoenix-picture><a><picture class="is-waiting-to-load"><source type="image/webp" sizes="(min-width: 1240px) 700px, (min-width: 675px) 620px, calc(100vw - 40px)" data-srcset="https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_380/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.webp 380w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_620/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.webp 620w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_1240/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.webp 1240w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_700/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.webp 700w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_1400/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.webp 1400w"><source sizes="(min-width: 1240px) 700px, (min-width: 675px) 620px, calc(100vw - 40px)" data-srcset="https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_380/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.png 380w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_620/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.png 620w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_1240/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.png 1240w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_700/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.png 700w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_1400/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.png 1400w"><img class="m-detail--tml-image m-image" alt="The first successful discreet log contract has been executed on the Lightning Network by creating a new type of transaction when opening a Lightning channel." decoding="async" src="https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_700/MTk0MTE1NjkxNDEyOTg5NjE3/dlcs.png" height="1570" width="1544" srcset="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" itemprop="contentUrl url"/></source></source></picture></phoenix-picture><figcaption>Transaction graph displaying how the DLC was executed</figcaption></figure></div><div class="m-detail--body-item m-detail--body-item-inline"><figure class="l-inline tml-image m-detail--tml-image--inline" itemscope="" itemtype="http://schema.org/ImageObject"><phoenix-picture><a><picture class="is-waiting-to-load"><source type="image/webp" sizes="(min-width: 1240px) 700px, (min-width: 675px) 620px, calc(100vw - 40px)" data-srcset="https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_380/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.webp 380w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_620/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.webp 620w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_1240/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.webp 1240w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_700/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.webp 700w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_1400/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.webp 1400w"><source sizes="(min-width: 1240px) 700px, (min-width: 675px) 620px, calc(100vw - 40px)" data-srcset="https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_380/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.png 380w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_620/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.png 620w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_1240/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.png 1240w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_700/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.png 700w, https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_1400/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.png 1400w"><img class="m-detail--tml-image m-image" alt="The first successful discreet log contract has been executed on the Lightning Network by creating a new type of transaction when opening a Lightning channel." decoding="async" src="https://bitcoinmagazine.com/.image/c_limit%2Ccs_srgb%2Cq_auto:good%2Cw_700/MTk0MTE1NjkxOTQ5OTI1ODkz/dlc-tldr.png" height="732" width="1504" srcset="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" itemprop="contentUrl url"/></source></source></picture></phoenix-picture><figcaption>by way of Crypto Storage</figcaption></figure></div><aside class="m-in-content-ad-row l-inline mm-in-content-ad-row--in-content not-size-b not-size-c not-size-d" data-ad-group="in_content-0"/>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 fully ignorant with reference to what a Discreet Log Contract is, it's a particular kind of bitcoin transaction that executes a wise contract with info supplied by an oracle.For instance, if two individuals 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 handle, pre-constructing end result transactions — if the 76ers win ship the sats to this handle, if the Grizzlies win ship the sats to this handle — and selecting an oracle, an organization that publishes last 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 could possibly be closed out by the winner of the wager by signing the transaction that strikes the sats within the sensible contract to their handle utilizing the hash of the end result supplied by Statmuse.<aside class="m-in-content-ad-row l-inline mm-in-content-ad-row--in-content not-size-a not-size-b not-size-c" data-ad-group="in_content-0"/><aside class="m-in-content-ad-row l-inline mm-in-content-ad-row--in-content not-size-a not-size-b not-size-d" data-ad-group="in_content-0"/><aside class="m-in-content-ad-row l-inline mm-in-content-ad-row--in-content not-size-a not-size-c not-size-d" data-ad-group="in_content-0"/><aside class="m-in-content-ad-row l-inline mm-in-content-ad-row--in-content not-size-b not-size-c not-size-d" data-ad-group="in_content-1"/>A sports activities wager is however one instance. People may determine to wager on the value of bitcoin, the hash price at a sure block top, the temperature on a selected day, and even create peer-to-peer derivatives just like the group from ItchySats has completed. In case you freaks have been following our protection of DLCs all through the years, you in all probability know that your Uncle Marty is fairly bullish concerning the potential for DLCs to disrupt a lot of industries. Nevertheless, so far, one of many issues limiting DLCs from hitting a crucial tipping level is the truth that they've solely been carried out on chain. Contemplating what number of potential functions that might 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 intervals of elevated transaction charges that make sure DLCs uneconomical. To me, it is smart for DLCs to function on Layer 2 protocols, just like the Lightning Community or Fedimint, which have comparatively low cost charges.Effectively, the Crypto Storage group introduced that they efficiently opened and closed a Lightning channel with an embedded DLC channel on mainnet. Per their blogpost, it appears just like the Crypto Storage group forked the Lightning Improvement Package so as to add help for splitting a Lightning channel, which has enabled them to create a DLC channel inside a Lightning channel. From there, they have been capable of create particular transactions — a break up transaction and a glue transaction — that may 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. This can be a huge step in the appropriate path.<aside class="m-in-content-ad-row l-inline mm-in-content-ad-row--in-content not-size-a not-size-b not-size-c" data-ad-group="in_content-1"/><aside class="m-in-content-ad-row l-inline mm-in-content-ad-row--in-content not-size-a not-size-b not-size-d" data-ad-group="in_content-1"/><aside class="m-in-content-ad-row l-inline mm-in-content-ad-row--in-content not-size-a not-size-c not-size-d" data-ad-group="in_content-1"/><aside class="m-in-content-ad-row l-inline mm-in-content-ad-row--in-content not-size-b not-size-c not-size-d" data-ad-group="in_content-2"/>With that being stated, the Crypto Storage group is warning that this implementation is in its very early days and shouldn't be thought of secure. The truth is, they warn that you're more likely to lose your sats when you attempt to execute this on mainnet. Nonetheless, that is unbelievable to see. Shoutout to the Crypto Storage group and people who helped them out for pushing this ahead.Slowly however certainly, 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.</div> [ad_2] <a href="https://news.google.com/__i/rss/rd/articles/CBMiU2h0dHBzOi8vYml0Y29pbm1hZ2F6aW5lLmNvbS90ZWNobmljYWwvZGxjcy1vbi1saWdodG5pbmctYW5kLWJpdGNvaW4tc21hcnQtY29udHJhY3Rz0gFYaHR0cHM6Ly9iaXRjb2lubWFnYXppbmUuY29tLy5hbXAvdGVjaG5pY2FsL2RsY3Mtb24tbGlnaHRuaW5nLWFuZC1iaXRjb2luLXNtYXJ0LWNvbnRyYWN0cw?oc=5">Source link </a>