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They Said Bitcoin Can’t Have Smart Contracts. They Were Wrong.

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DLC stands for “Discreet Log Contracts.” They are a type of smart contract protocol built on top of Bitcoin’s blockchain. DLCs allow for the execution of contracts where the outcome is based on real-world events, such as sports events, weather conditions, financial market movements, or any other verifiable data. These contracts are “discreet” because the terms of the contract are kept private between the parties involved and are settled off-chain, meaning they don’t require every transaction to be recorded on the Bitcoin blockchain, which helps in reducing transaction costs and improving scalability. DLCs enable trustless and decentralized betting, derivatives, and other financial instruments without the need for intermediaries.