How to collateralize real Bitcoin on Stacks Dapps?! #7
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A Discreet Log Contract (DLC) is a form of Bitcoin transaction which uses an oracle to execute a smart contract. Essentially, DLCs allow parties to place bets using the Bitcoin blockchain. In order to construct a DLC, two parties lock funds in a multisig address. These funds are only able to be spent when the oracle releases the specified information at a specified time. An oracle for a DLC can be any form of data feed, such as a website’s publication of the result of a sports match, or an exchange’s listing of an asset price... |
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Maybe a solution to write on Bitcoin ledger indirectly is thisway, a DLC-like method...So for example, for locking one's real Bitcoin asset for collateral purposes, you can generate a new multisign Bitcoin address with two signatures: one for the Btc owner and the second for the Stacks contract (role of oracle in DLC) that can read two significant data: Bitcoin txid & conditions written on Stacks collateral smart-contract |
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I was wondering about using of DLC-like method for this purpose... utilizing new Bitcoin upgrade taproot, you can create time-lock contracts on Bitcoin by the benefit of Schnorr signatures...What is really needed in DLCs is oracle data. But we already have access to Bitcoin data natively on Stacks, right?.. Implementing that, and that's sort of time-lock collateralization for users without need of leaving Bitcoin network!
@MarvinJanssen @0xAsteria @friedger @314159265359879
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