1/ Self-Custodial Bitcoin Escrow 🤯
Xverse partners with @DLC_Link to offer crosschain apps using Bitcoin.
How? Discreet Log Contracts (DLCs) enable trustless Bitcoin DeFi in 4 ways 🧠🧵
2/ 1️⃣Facilitates Non-Custodial Escrow Functionality
Funds are held in decentralized multisig UTXOs on-chain, preventing mismanagement of the underlying BTC collateral = BTC in escrow.
3/ 2️⃣Minimizes Online Attacks
Participants’ addresses are locked and cannot be changed. 🔒
If the oracle is hacked, the user’s BTC can only go to one of the original participants. The DLC provides a cryptographic guarantee that real BTC is locked.
4/ 3️⃣Eliminates Central Points of Failure
Unlike custodial options, DLCs hold BTC collateral across multiple escrow accounts = no central point of failure. Bitcoin is kept on-chain throughout.
5/ 4️⃣Provides Bitcoin Base-Level Security
@DLC_Link is built on Bitcoin, meaning all applications, assets, and transactions inherit Bitcoin’s base-level security.
The funds escrowed into a DLC are UTXOs that live directly on Bitcoin’s ledger.
6/ This means that collateral held through DLC.Link’s platform is still controlled no differently than regular Bitcoin balances are controlled within Xverse.
7/ @DLC_Link designed a decentralized network of oracles that listen to events from numerous other blockchains, which leverages the trustless and decentralized nature of the greater blockchain ecosystem. 🕸️🦾
8/ Wen live? Very soon.⏳In the meantime we invite you to join our Twitter space with Xverse and @DLC_Link teams.
🎙️Bring your questions for the Q&A!
https://twitter.com/i/spaces/1YqJDoXNAvAGV
9/ Bullish to read more?
🔎 Here’s a thorough look at the protocol:
https://www.xverse.app/blog/4-ways-dlc-links-bitcoin-oracles-enable-bitcoin-defi