Discreet Log Contracts
Home » Bitcoin Finance » Discreet Log Contracts (DLC)
A Discreet Log Contract or DLC is a type of Bitcoin transaction that requires an oracle to execute a smart contract. A DLCs allows two parties to place bets using the Bitcoin blockchain as the final settlement. To construct a DLC, two parties lock funds in a multiSig wallet. These funds are only released 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.
The oracle or oracles are specified in the discreet log contract, and once the conditions in both outcome and time are met. The funds will release to one of the parties that took the side of the bet that met the conditions presented by the oracle.
A DLC works by using an oracle’s signature of a certain message as a private key, which allows the winner of the bet to sign a transaction spending the funds the two counterparties committed to the contract at the beginning.
![DLC on BTC](https://thebitcoinmanual.com/wp-content/uploads/2021/08/discreet-log-contract.png)
Share with a friend
If you thought this information was helpful why not share it on your favourite social media network and encourage others to learn more about Bitcoin
The latest news from our blog
![Lightning Network Innovations](https://thebitcoinmanual.com/wp-content/uploads/2024/08/ln-innvations-300x158.png)
![Nicky](https://thebitcoinmanual.com/wp-content/uploads/2021/07/TBM-Nicky-avatar-128x128.png)
17 Exciting Lightning Network Innovations
Lightning Network innovations are popping up left, right, and centre. Without a doubt, Lightning is winning ground in providing fast, low-cost Bitcoin transactions. The Lightning Network
![German Crack Down BTC ATMs](https://thebitcoinmanual.com/wp-content/uploads/2024/08/german-crackdown-atm-btc-300x158.png)
![Che Kohler](https://thebitcoinmanual.com/wp-content/uploads/2021/07/TBM-Che-avatar-128x128.png)
German Authorities Crack Down On BTC ATMs
2024 is the year German authorities woke up and chose violence; it’s been a bit of a brat summer in Bavaria, starting off with the
![Fountain App Adds Nostr](https://thebitcoinmanual.com/wp-content/uploads/2024/08/fountain-app-nostr-300x158.png)
![Che Kohler](https://thebitcoinmanual.com/wp-content/uploads/2021/07/TBM-Che-avatar-128x128.png)
Fountain App Integrates Nostr
Fountain FM was one of the first mobile apps to promote the value-for-value model with a slick UI, providing a built-in custodial wallet for easy