I don't get it.
I get the fundamentals but it sounds much like a 2/2 multisig. Like a LN channel but with the added risk of third-party oracle. Questions..
Besides:
  1. Collateralizing a loan which generates yield (defi) or a bet that is decided by an oracle. Are there any other use cases? Do DLCs provide covenant infrastructure?
  2. Technically, how would an oracle source data for, for example, a coin flip? This is nothing programmatic? An oracle is basically a human that inputs heads or tails to fulfill a contract which is given to the winner, right?
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Collateralizing a loan which generates yield (defi) or a bet that is decided by an oracle. Are there any other use cases? Do DLCs provide covenant infrastructure?
Yes, is possible generate, but DLCs are early protocol and is necessary add more tools. Thee other use case are 2-of-2 with multisig between channels, open/close channels..
Technically, how would an oracle source data for, for example, a coin flip? This is nothing programmatic? An oracle is basically a human that inputs heads or tails to fulfill a contract which is given to the winner, right?
When you open channel using DLCs for X token, automatically is created a mini market with price about asset.
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I see. That's what I figured. I suppose Oracle's might be live market feeds that further down the line are plugged into BitVM and deliver outcomes.
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BitVM is possible have connections with DLCs, but is necessary this kind orcale stay mature and tested. We're still in early days.
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I think I get what you're saying. It's hard to imagine what this could all look like as time increases. Thanks for your reply!
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You're welcome.Short term BitVM and DLC not happen while long term yes
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