We Study Billionaires - The Investor’s Podcast Network BTC018: Bitcoin Smart Contract w/ Discrete Log Contracts featuring Pierre Rochard & Ben Carman (Bitcoin Podcast)
Mar 24, 2021
Pierre Rochard, a Bitcoin expert and advocate for discrete log contracts, and Ben Carman, a contributor to Bitcoin innovations, delve into the fascinating world of Discrete Log Contracts (DLCs). They explain how DLCs differ from other smart contracts and their significant implications for the Lightning Network and Ethereum. The duo discusses the role of Oracles in DLCs, the rising costs of Bitcoin, and how these contracts can revolutionize transaction efficiency. Their insights illuminate the future landscape of Bitcoin and smart contracts.
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DLCs Explained
- Discrete Log Contracts (DLCs) automate the mechanics of derivative contracts like futures.
- They determine payouts based on underlying events, focusing on information like price rather than moving the asset itself.
Recent Breakthrough
- DLCs were theoretically possible earlier, but recent cryptographic advancements made them practical.
- Adapter signatures on ECDSA, discovered by Tadge Dryja and Lloyd Fournier, enable cleaner DLC implementation.
Scalability Debate
- Ethereum smart contracts offer broader functionalities but suffer from scalability issues and high gas fees.
- Bitcoin's DLCs prioritize efficiency, potentially avoiding similar scaling problems as adoption grows.