Discreet Log Contract (DLC)
Smart Contracts● Common
A smart contract protocol enabling conditional Bitcoin payments based on real-world events without revealing contract details on-chain. Uses oracle attestations with adaptor signatures so the oracle's signature on an outcome automatically enables spending the correct contract branch.
Technical Notes
Oracle pre-commits to nonce R = k·G for each possible outcome. Parties create adaptor signatures for each outcome. When oracle signs, reveals s = k + H(outcome)·x, completing the adaptor. Oracle never sees the contract or knows funds depend on their attestation. Enables betting, insurance, derivatives on Bitcoin.
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Visibility: Public
Created:1/3/2026by System