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Mobile Generatoren für Revel Casino

Es wurde bekannt gegeben, dass drei mobile Generatoren am Dienstag im ehemaligen Revel Casino eintrafen, das bereits 2014 geschlossen wurde. Die Stromversorgung der Unterkunft wurde am vergangenen Donnerstag abgeschaltet.

Glenn Straub, der den schwierigen Veranstaltungsort für 82 Millionen US-Dollar gekauft hatte, erklärte, dass die beiden Hauptgeneratoren und ein Backup-Generator innerhalb der nächsten zwei Tage installiert werden und ausreichen werden, um das gesamte Grundstück zu versorgen.

Er wies darauf hin, dass der HQ-Nachtclub nun bereit sei, den Betrieb wieder aufzunehmen

Herr Straub sagte auch, er erwäge, das Resort mit Strom vom benachbarten Showboat zu versorgen . Kürzlich wurde hier online berichtet, dass der Entwickler in Florida am 3. April eines der emblematischen Casinos von Atlantic City von seinem früheren Besitzer – der Stockton University – gekauft hat.

Das 47-stöckige, 710 Fuß hohe Revel Casino wurde bereits 2012 erbaut. Ehemalige Eigentümer investierten rund 2,4 Milliarden US-Dollar in den Bau. Letztes Jahr beantragten sie Insolvenzschutz nach Kapitel 11, da sich die Immobilie nicht als rentabel erwies.

Wie oben erwähnt, hat der Florida-Entwickler Glenn Straub den Veranstaltungsort am vergangenen Dienstag für 82 Millionen US-Dollar gekauft. Nur zwei Tage später stellte ACR Energy Partners, das Unternehmen, das Revels einzige Erdgas- und Stromquelle war, seinen Versorgungsdienst nach mehreren Warnungen ein .

Der Lieferant erklärte seinen Schritt mit der Tatsache, dass er mit Herrn Straubs Polo North Country Club Inc. keine Einigung über die künftige Erbringung seiner Dienstleistungen erzielen konnte .

Dies wiederum führte dazu, dass Stadtbeamte gegen die neuen Besitzer des Casinos Bußgelder in Höhe von insgesamt 5.000 USD pro Tag verhängten, da Revels Systeme zur Brandverhütung und -unterdrückung nicht mehr voll funktionsfähig waren.

Die Feuerwehr von Atlantic City warnte, dass Feuerwehrleute ohne Wasser und Strom nicht in der Lage wären, Notsituationen zu bewältigen

Herr Straub brachte die Angelegenheit nur einen Tag nach der Einstellung der Versorgungsleistungen vor Gericht . Der Richter entschied jedoch nicht zu seinen Gunsten und die Macht wurde nicht wieder eingeschaltet.

Anfang dieser Woche versprach der Entwickler in Florida , ACR Energy zu vertreiben , da sich die Anlage auf einem Grundstück befindet, das jetzt Herrn Straub gehört.

Der Rechtsstreit zwischen dem Versorger und dem neuen Eigentümer von Revel wurde auf Antrag von Timothy Lowry, einem Anwalt von ACR Energy, vor ein Bundesgericht gebracht. Herr Lowry wies darauf hin, dass die Anlagenbesitzer beschlossen, das Casino zu trennen, da Herr Straub sagte, er würde nur für Wartung und Betrieb bezahlen , nicht aber für Strom und Erdgas.

Le prix des bitcoins atteint un nouveau sommet de 16 100 dollars – Le macrocycle est-il confirmé ? (Analyse de la CTB)

Les taureaux Bitcoin sont revenus avec force aujourd’hui et ont propulsé la crypto du haut vers un nouveau sommet de 16 177 $ – un prix jamais vu depuis 2017 ! Le marché mondial de la cryptographie est brièvement remonté au-dessus de 460 milliards de dollars pendant cette flambée, alors que 12 milliards de dollars ont été réinjectés dans l’espace.

Malgré la forte pression de vente à ce nouveau niveau, les autres négociants leaders de l’industrie sont très optimistes quant au fait que Bitcoin est officiellement entré dans un nouveau macrocycle. Selon le créateur du modèle populaire de Stock-to-Flow de Bitcoin, PlanB, cette dernière pompe au-dessus du seuil de 16 000 dollars signifie que la CTB est toujours en voie d’atteindre 100 000 dollars par pièce.

Niveaux de prix à surveiller à court terme

Sur le graphique en données de 4 heures de la CTB/USD, on peut voir que l’actif a rompu le triangle haussier ascendant et se retourne actuellement vers l’ancienne résistance et trouve un nouveau support. Il faut espérer que les traders haussiers seront capables de se maintenir à ce niveau et de se recharger avant de lancer un second rallye vers le nouveau plus haut.

Les principales résistances qui entravent actuellement la progression de bitcoin comprennent les 15 970 dollars et la zone de résistance majeure (rouge) entre 16 150 et 16 250 dollars.

Au-delà de ces objectifs, nous avons également de fortes résistances quotidiennes autour de 16 475 $, 16 660 $, et le niveau psychologique suivant à 17 000 $.

Cependant, si les traders haussiers ne parviennent pas à maintenir le soutien actuel et que les prix retombent dans le triangle ascendant, nous nous tournerons d’abord vers le soutien de 15 600 $ pour aider les prix à se maintenir contre une nouvelle baisse. À partir de là, nous avons une zone de soutien plus faible (barre verte) autour du niveau de 15 470 $.

En dessous, nous avons également une deuxième zone de soutien clé autour de 15 145 $ qui chevauche la ligne bleue (50-EMA).

En ce qui concerne le RSI, nous aimerions voir la CTB imprimer un nouveau sommet au-dessus de 65 pour confirmer que le nouvel élan est réel et qu’il ne s’agit pas d’une simple pompe temporaire. Pour l’instant, elle est cassée au-dessus de la résistance à la baisse (ligne jaune) mais commence à pousser latéralement.

Total des capitaux du marché : 461 milliards de dollars
Capital du marché des bitcoins : 293 milliards de dollars
Dominance des bitcoins : 63,6%.

Hash Wars III: clones clone – yet another fork of Bitcoin Cash (BCH)

Almost one fork per year – After the fork between Bitcoin (BTC) and Bitcoin Cash (BCH) in August 2017, then the fork between BCH and Craig Wright’s BSV in November 2018, it is a third “hash war” which looms this November 15. A deep disagreement within the BCH community will cause a further split into two distinct blockchains.

We no longer stop the cloning of BCH: here we are now BCHA and BCHN

The communities in the Bitcoin Profit project seem to agree to disagree. The bone of contention is the implementation of an 8% tax on mined block rewards .

This implementation, scheduled for the fork of November 15, has been very strongly criticized from its first evocations at the beginning of 2020. Although the controversial tax has since been reduced (from 12.5 to 8%), nothing is there. fact: some miners and nodes in the network will refuse this forced taxation.

The two clans are divided as follows.

On the one hand, there is the clan gathered around Bitcoin ABC , whose crypto will be called „BCHA“ . This camp will implement the famous tax, which aims to help the development of the BCH network (well BCHA, we must manage to follow!).

On the other hand, there is the “BCHN” (Bitcoin Cash Node) tribe , led by Roger Ver . They refuse taxation, criticizing in particular the fact that all the withdrawals will go to a portfolio controlled by Amaury Séchet .

Emergency plans created in panic by crypto platforms

The CoinDance site allows you to list by which node software client the last 1,000 blocks on the BCH network were validated . The least that can be said is that taxation is not on the rise at all.

As can be seen below, 767 of the last 1000 blocks ( more than three-quarters therefore) were mined by nodes with the tax-free implementation of BCHN . Only 8 blocks (or 0.8%) validated a block with the client version of Bitcoin ABC . However, it should be noted that 22.5% of “neutral” nodes have still not chosen their camp.

Breakdown of customer types who have validated the last 1,000 blocks of the Bitcoin Cash network
As we can see on the Bitcoin.com site , the exchange platforms and the various crypto services are a little overwhelmed by so much separatist violence .

Realizing the big problem on the way, crypto exchanges Binance and Huobi, for example, have just announced that they will stop a certain number of services relating to BCH during this stormy transition phase of the hard fork . Binance will more precisely stop these BCH futures contracts in prevention, from this November 9.

On the side of Coinbase and BitGo , the decision is made: the two companies will only keep BCHN type nodes , and will no longer support BCHA after the November 15 fork.

Even if this umpteenth schism now seems inevitable within 10 days of the hard fork , the BCHA clan seems reduced to grief. The latest snub to the minors‘ tax camp would be that BCHN ultimately retains the title of BCH, experiencing the same fate of “forced renaming” of BSV.

IPO in Australia accepts cryptocurrency Tether for the first time

Stax makes it possible: WCA shares can be paid for on the Sydney Stock Exchange (SSX) with Australian dollars and, for the first time, with the stable coin tether.

An initial public offering (IPO) is nothing unusual in itself

It becomes interesting, however, when traditionally securitized securities can also be paid for with tokens instead of just fiat money. This is now possible in Australia. Behind this is Australia’s crypto-friendly capital-raising platformStax. She and her client West Coast Aquaculture Group (WCA) have announced such a project. This is the first IPO in the country to accept a virtual currency as a means of payment.

Investors participating in WCA’s offering can purchase the company’s equity through Tether (USDT) or Australian dollars, as reported in media reportsis called. Since tether, as a stable coin, is naturally subject to slight fluctuations, it was given preference over other crypto currencies such as Bitcoin (BTC) or Ethereum (ETH). The speed was also a decisive criterion. Bitcoin Legacy shares are expected to begin trading on the Sydney Stock Exchange (SSX) around November 19, 2020.

The acceptance of USDT in an IPO is a transformative move in Australia and a significant advance in the adoption of cryptocurrencies in general. It paves the way for the future of the capital markets Down Under. We are democratizing access to a market that has previously been difficult for foreign investors to access, which will only be beneficial for Australian companies in the long term.

IPO is expected to raise at least A $ 5 million

WCA is based in Melbourne and operates one of the largest marine farms in Langkawi, Malaysia. Their main products are live and fresh grouper species. WCA’s clientele includes wholesale and retail customers in Malaysia, Hong Kong and Singapore.

As stated in the IPO’s prospectus, WCA is offering between 10,000,000 and 14,000,000 shares at a price of $ 0.50 each. That is between 8.78 and 11.87 percent of the total available shares. The minimum target is 5 million Australian dollars. WCA chose the Sydney Stock Exchange (SSX) as its trading venue because of the support it gives companies with smaller market capitalizations. The requirements are also generally more transparent and easier to meet. After its IPO, WCA plans to use investments to expand. This includes the purchase of hatchery and rearing facilities in order to further optimize the supply chain for fresh fish. The IPO was led by Agile Legal and STAX to ensure

Il Bitcoin Fund di 3iQ inizia a operare in dollari canadesi dopo un traguardo di 100 milioni di dollari

Secondo un recente annuncio, le Quote di Classe A di 3iQ’s The Bitcoin Fund hanno iniziato le negoziazioni in dollari canadesi alla Borsa di Toronto con il simbolo „QBTC“. L’operazione è stata avviata il 20 ottobre.

Si tratta di uno sviluppo cruciale

Si tratta di uno sviluppo cruciale, la cui importanza è stata sottolineata da Fred Pye, Presidente e CEO di 3iQ,

„Infine, gli investitori canadesi hanno l’opportunità di negoziare il Bitcoin Fund nella loro valuta nativa e attraverso i loro conti dominati localmente, eliminando così i costi interminabili e seppur fastidiosi della conversione delle valute“.

3iQ è stato il primo gestore di fondi d’investimento canadese a ottenere l’approvazione da parte delle autorità di regolamentazione canadesi per gestire un fondo pubblico Bitcoin Compass e un fondo patrimoniale multi-crypto.

Infatti, il fondo, lanciato il 9 aprile 2020, ha appena superato un importante traguardo di oltre 100 milioni di dollari di capitalizzazione di mercato. Gemini è un sub-custode per The Bitcoin Fund ed è l’unico custode per il 3iQ Global Crypto-asset Fund che investe in Bitcoin, Ether e Litecoin.

Il Valore Patrimoniale Netto per quota per il Bitcoin

Il Valore Patrimoniale Netto (NAV) per quota per il Bitcoin Fund era di 9,24 dollari all’inizio, con lo stesso importo di 14,42 dollari al momento della stampa. In confronto, il NAV del fondo multi-crypto asset fund di 3iQ all’inizio era di $10 nel 2018, con le stesse negoziazioni all’incirca allo stesso valore, al momento della stesura del presente documento.

L’aumento di valore del Bitcoin Fund nell’arco di pochi mesi sembra implicare che la mancanza di diversificazione sia stata favorevole in questo caso. Il successo della strategia del singolo asset arriva sul retro di 3iQ che riceve la ricevuta del Prospetto Preliminare di The Ether Fund dalle autorità di regolamentazione dei titoli in Canada.

Il valore del Bitcoin Fund si basa sul MVIS CryptoCompare Institutional Bitcoin Index (MVIBTC) gestito da MV Index Solutions GmbH (MVIS). Il fondo è stato quotato alla Borsa di Gibilterra alcune settimane fa – una località che può offrire ETF ad un mercato europeo più ampio non appena le normative lo consentono.

Wall St porta PayPal ai massimi storici sulle notizie di Bitcoin

A quanto pare, gli investitori mainstream hanno apprezzato la svolta dell’azienda verso le criptovalute.

PayPal (PYPL) ha raggiunto $ 215,87 il 21 ottobre, pochi dollari oltre il suo precedente massimo storico di $ 212,38, fissato il 2 settembre 2020, secondo i dati di TradingView

Questa azione sui prezzi è avvenuta poco dopo che la società di pagamenti ha annunciato che presto avrebbe incluso risorse crittografiche sulla sua piattaforma. PayPal prevede di integrare le offerte di Bitcoin ( BTC ), Etheruem ( ETH ), Litecoin ( LTC ) e Bitcoin Cash ( BCH ) nella propria rete nel 2021.

Aprendo la giornata di negoziazione a $ 206,20, PayPal è rapidamente salito oltre il suo massimo storico, ma di poco, superando il livello di circa $ 0,14. Successivamente l’asset è sceso più in basso prima di rompere il massimo precedente con convinzione, superando $ 215.

Bitcoin ha anche raccolto i frutti delle notizie di PayPal, raggiungendo brevemente $ 12.900 , un aumento di prezzo di $ 1.000 in 24 ore. Il prezzo è sceso a $ 12.750 al momento della pubblicazione

Tuttavia, non tutti sono colpiti. L’analista di criptovaluta PlanB ha descritto la notizia come deludente in un tweet , sottolineando che i clienti non saranno in grado di trasferire le proprie risorse digitali da PayPal, sulla base di una pagina delle domande frequenti sul sito Web dell’azienda. „Al momento, puoi tenere solo la criptovaluta che acquisti su PayPal nel tuo account“, dice la pagina. „Inoltre, la criptovaluta nel tuo account non può essere trasferita ad altri account su o fuori PayPal.“

PlanB ha riconsiderato il suo sentimento in un tweet di follow-up , notando l’azione dei prezzi di Bitcoin in risposta allo sviluppo, così come il potenziale accesso alla crittografia mainstream che PayPal potrebbe aggiungere.

PlanB è noto nel settore delle criptovalute per il suo modello stock-to-flow che prevede che il prezzo di Bitcoin potrebbe superare i $ 100.000 per moneta.

Bitcoin touches the $12,900 while PayPal proves that the cryptos are ready for everyone

Wednesday saw further rises after conflicting reactions to PayPal’s decision, which in 2021 will support four cryptocurrencies

On October 21, Bitcoin (BTC) peaked at $12,865 after news on PayPal that the payments company will support cryptocurrency continued to push the markets.

Daily overview of crypto markets

BTC’s price approaches 2019 highs

Cointelegraph Markets, Coin360 and TradingView data confirmed Bitcoin’s best day for over a year, with gains of 7% in 24 hours.

At the time of writing, a few hours after arriving at $12,400, BTC/USD exceeded $12,500 to meet resistance just under $13,000.

BTC/USD time chart
BTC/USD time chart. Source: TradingView

As reported by Cointelegraph, starting next year PayPal plans to support Bitcoin and three altcoins: Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).

Reactions continue to emerge, showing heterogeneous feelings in the crypto sector. Some analysts criticise the company for not giving potential investors the freedoms associated with normal crypto wallets.

PayPal aims to provide crypto-currency custody services, but will impose limits on how funds can move to and from its products.

„So, this news about PayPal is all hot air, just entries in a central PayPal database, nothing to do with Bitcoin,“ replied the PlanB analyst.

Anyway, the impact on market sentiment became apparent immediately after Reuters broke the news, with Litecoin leading the altcoin in terms of rises, earning 11.1% to $52.30.

Tokenized Bitcoin on Ethereum and Tron: DeFi adaptation explodes

Bitcoin vs. Ethereum: Which Miners are ahead?

In the wake of the recent hype of decentralized finance projects (DeFi), the tokenization of Bitcoin on Tron and Ethereum is progressing inexorably.

Bitcoin is rapidly establishing itself in the DeFi sector. In the last two months alone, more than $900 million worth of Immediate Bitcoin app has been transferred to Ethereum Blockchain through the Wrapped Bitcoin (WBTC) tokenization protocol. Overall, the amount of bound Bitcoin on the Ethereum network has increased by 900 percent in the last two months.

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With WBTC, users can exchange BTCs for wrapped Bitcoin, an ERC-20 token that is coupled to Bitcoin. Similar to Tether (USDT), which is linked to the US dollar, the WBTC token represents the current Bitcoin exchange rate.
Wrapped Bitcoin booming in the Ethereum DeFi sector

This gives Bitcoin Hodler access to the diverse DeFi ecosystem. In addition, tokenization enables the Bitcoin network to scale, since Bitcoin on Ethereum can take advantage of all the benefits of an ERC-20 token.

In addition, WBTC is currently the fifth largest DeFi protocol and accounts for almost ten percent of the capital deposited on the Ethereum block chain.

DeFi Pulse Ranking

In the first half of 2020, the number of Bitcoin bound on the Ethereum network grew from 4 million dollars to 36 million dollars. The DeFi hype in the third quarter, significantly demonstrates the extreme increase in demand in the DeFi sector.

Furthermore, the hype about tokenized Bitcoin has benefited tokenization protocols such as Ren (REN). Ren’s Virtual Machine (VM), which was launched at the end of May, now comprises more than $300 million of tokenized Bitcoin. Over the same period, the REN exchange rate has increased by approximately 180 percent.

Tron DeFi project takes part in the hype about tokenized Bitcoin

Tron CEO Justin Sun has made several recent attempts to attract investors to Tron’s DeFi sector. On September 16th, Tron announced that community-driven DeFi protocol Sun (SUN).

SUN serves as a governance token for the creation of new mining pools and is the center of the DeFi ecosystem of the Tron block chain.

Similar to Uniswaps UNI tokens, SUN can be minted by providing liquidity. Since a few days it is possible to mine SUN tokens using tokenized Bitcoin.

According to a medium post of the Tron Foundation, the SUN token will also serve as a „transit center“ for block-chain-wide transactions in the future.

Bitcoin on the Tron block chain

Since Tron released its TRC-20-bitcoin on September 30, total committed capital has already exceeded $20 million.

The trend toward Bitcoin tokenization is advancing at a rapid pace. Until a few years ago, probably few would have suspected that this would partially solve the scaling problem of Bitcoin over a second-layer network.

Nevertheless, there are some risks involved in tokenizing Bitcoin on a different block chain.

Hvordan Chainlink (LINK) nå kan bevise $ 1 milliard innpakket Bitcoin på BitGo

Blockchain agnostisk protokoll og desentralisert oracle-leverandør Chainlink vil nå bli brukt av crypto depottjeneste BitGo for å gi verifiserbart bevis på sistnevntes $ 1 milliard verdt av Wrapped Bitcoin i lagring, i henhold til en utgivelse.

Flyttet er enda et høyt profilert partnerskap for Chainlink den siste uken alene, etter at det kunngjorde utviklingen med Theta Network og Blockstack tidligere.

Chainlink er $ 1 milliard bevis

I et blogginnlegg sa BitGo at over 1 milliard dollar låst i form av WBTC – et ERC20-token som representerer underliggende Bitcoin – viste at etterspørselen etter kryss-kryptokapital innen DeFi var „veldig reell.“

For å ytterligere skalere WBTCs pålitelighet og støtte den økende etterspørselen, sa BitGo at de ville samarbeide med Chainlink-teamet for å „effektivisere revisjonsevnen til WBTC-reserver.“ DeFi-applikasjoner kan nå motta definitivt bevis på kjede om full støttet sikkerhet i WBTC, bemerket firmaet.

„Denne romanen bevis på reserve er mulig på grunn av Bitcoin-nettverkets åpenhet, gjennomsiktigheten fra BitGo og det meget sikre desentraliserte orakelnettverket som Chainlink driver,“ forklarte BitGo.

„BitGo har tatt i bruk Chainlink’s Proof of Reserve-mekanisme. Nå, live på testnet (og snart mainnet), muliggjør denne Chainlink-funksjonaliteten desentraliserte applikasjoner på Ethereum. ”

Firmaet la til at farten hjelper til med å automatisere byrden med å revidere BTC-verdien som deponeres av BitGo på en pålitelig og sensurbestandig måte, som „fjerner behovet for å stole på manuelle off-chain-prosesser som å lese revisjonsrapporter.“

Hvordan bevis på reserver fungerer

Bevis for reserver fungerer som følger: Chainlinks orakler oppdaterer kontinuerlig og gir informasjon om WBTCs reserver på forespørsel, som kan brukes av andre DeFi-applikasjoner på Ethereum.

Smarte kontraktsapplikasjoner på Ethereum kan deretter spørre om bevis for reservekontrakt for øyeblikkelig å verifisere at hver WBTC-mynt er fullt støttet av en lik reservebalanse på BTC i BitGos depotadresse på Bitcoin-blockchain, forklarte BitGos leder for produktet Kiarash Mosayeri i innlegget.

WBTC Proof of Reserve-referansekontrakten bruker et desentralisert Chainlink-orakel for å sjekke saldoen på BitGos WBTC-forvaringslommebøker hvert tiende minutt (gjennomsnittlig tid mellom Bitcoin-blokker), bemerket han og la til:

„Hver gang et avvik blir oppdaget utover en bestemt definert terskel (f.eks. 1%), vil Chainlink-orakler skyve en oppdatering på kjeden til referansekontraktene med den nye saldoen.“

En slik mekanisme gjør det mulig for BitGo å påviselig bevise sine massive reserver, noe som igjen bidrar til å tiltrekke seg nyere kapital, regulering og sårt tiltrengt kapitalstyring til det spirende kryptorommet.

DeFi on Bitcoin: the new route to decentralised finance

Is DeFi also possible on Bitcoin? Discrete Log Contract (DLC) could represent the first step towards a truly decentralised and peer-to-peer finance

Over the last few months there has been a growing hype in the world of DeFi, i.e. „Decentralised Finance“, a fairly generic concept in itself, but one that has been used very intensively for the promotion of various projects on Ethereum. Decentralised finance, however, is by no means a new phenomenon; on the contrary, one could argue that it is even older than centralised finance, as historically most financial exchanges took place without intermediaries. Suffice it to say that for millennia, value has been exchanged all over the world simply using gold coins, without financial intermediaries or central banks, and that most loans were peer-to-peer within households or local communities.

In the modern era, however, partly with the aim of achieving higher performance and efficiency and partly due to progressively stricter regulations, financial exchanges have become increasingly centralised, both with the advent of central banks and the evolution of commercial banks and the development of payment intermediaries. In fact, Bitcoin was born as an attempt to reverse this trend, eliminating the need to rely on trusted third parties to manage our economic interactions and exploiting the state of the art of cryptography to be able to exchange value securely even with strangers.

As a result of Bitcoin’s success, many people have begun to look for ways to manage even more complex financial transactions in a decentralised manner, with the aim of being able to replicate all the activities of traditional finance without the need for intermediaries. It was with this objective in mind that Ethereum was promoted and developed, which sought to offer advanced smart contracts using a more generic and less specialised transaction scripting language than Bitcoin’s, thus creating its own ecosystem which then adopted the term „DeFi“ for the marketing of many of its projects.

However, what was developed on Ethereum was achieved with trade-offs that were in some ways very limiting. First of all, Ethereum’s choice to keep all the logic of smart contracts on the blockchain with global consensus immensely limits the scalability of the system, making it increasingly difficult for users without high-performance hardware to validate the Ethereum blockchain without having to rely on external services, and increasingly expensive, in terms of fees, to execute contracts with complex conditions. Furthermore, by keeping all the data for the execution of contracts in a public ledger, the level of confidentiality for users is obviously very low, which makes the system less attractive for those who need privacy (e.g. a company that does not want its competitors to know what derivatives it is exposed to).

Fortunately, while many projects were born on Ethereum, other working groups have invested time and resources to build, in parallel, a more scalable and confidential smart contract infrastructure, working directly on Bitcoin, which is a cheaper blockchain to validate and with a more security oriented approach to innovation. Although some people criticize the Bitcoin ecosystem for this excess of prudence and slowness in innovation, in recent years it is undeniable that the technological infrastructure built on it has grown immensely. Just think of the enormous progress on Lightning Network and Sidechain, the less appreciated but equally important tools for developers like Miniscript and the many ambitious projects under development, such as RGB to enhance tokens on Bitcoin and Statechain to further improve scalability complementary to the Lightning Network.

However, the most relevant development for the DeFi and smart contract world on Bitcoin is undoubtedly the Discrete Log Contract, or in short DLC, proposed for the first time in a 2017 paper by Thaddeus Dryja (also author of the first paper on the Lightning Network). The term refers to discrete logarithms which, without going into too much technical detail, are the basis of the elliptical curve cryptography used in these special smart contracts. What is more important, however, is what they allow. In fact, DLC smart contracts allow two or more counterparties to make generic bets whose result will be determined by an oracle (i.e. data source), without this oracle ever knowing the existence of the bet and how the data it provides about events in the real world will affect the execution of the contract.

Now, to better understand how this mechanism works, let us try to see a practical example. Let’s assume that Alice and Bob want to bet 1 BTC on the outcome of the US elections in November, with Alice betting on Trump and Bob betting on Biden’s win. To create the contract first both parties put the collateral of 1 BTC each in a multisig address 2 of 2, of which they control one key each. From this address three transactions will be created: one to a smart contract that can be unlocked by Alice if the oracle certifies that it has won Trump, one to a smart contract that can be unlocked by Bob if the oracle certifies that it has won Biden and one that sends back 1 BTC each if the oracle does not certify either.

But how can the oracle certify within a smart contract without being aware of the existence of the smart contract itself? The innovation brought by DLCs is precisely in exploiting a cryptographic trick within the elliptical curves used for digital signatures in Bitcoin, which allows the oracle to treat the signature of a message by the oracle (where the message would be the output of the bet, „TRUMP“ or „BIDEN“), as if it were a private key that can in turn sign the transaction that unlocks the funds to the winning side.

This way, if Alice wins Trump, she can unlock the funds using her private key plus the oracle signature of the „TRUMP“ message to sign the transaction; if Biden wins, Bob can do the same using his private key plus the oracle signature of the „BIDEN“ message. If, on the other hand, the oracle disappears, or is unable to sign either output because the election result remains disputed and there is no obvious winner, Alice and Bob can take back the collateral put in the contract with the refund transaction.

This is clearly an extremely simplified explanation that omits several mechanisms necessary to mitigate some malicious behaviour that the two parties might undertake in particular situations, but it is still sufficient to understand the potential of this scheme.

In fact, beyond betting on political or sporting events, DLCs can also be used to create real financial derivatives where the object of the bet can be the price of an asset (e.g. Alice and Bob bet on the bitcoin price at the end of the year) and the outputs can be not only binary but also granular, through the preparation of hundreds of different payouts for hundreds of different price ranges for the future BTC/EUR rate, thus creating very censorship resistant futures, confidential and with an extremely reduced need of trust towards third parties. Precisely with regard to the problem of the trust also, to mitigate the risk that an oracle makes an incorrect reporting on an event, it is possible to rely on several oracles, so that the payout between the two parties is distributed according to the average prices reported by the various oracles.

Last but not least, DLCs are also compatible with the Lightning Network, at present only within bidirectional channels but, thanks to the next evolutions of LN (i.e. payment points), it will also be possible to routing economic relationships regulated by contracts of this type, thus allowing to obtain great scalability and reduced costs.

The first experimental DLC was performed in 2019 between CryptoGarage and Blockstream, who bet on BTC’s future price by creating a forward peer-to-peer contract. Subsequently, other companies and researchers began to experiment, working on shared formal specifications and implementing DLCs in some open source bitcoin libraries. But what will probably unlock the potential of DLCs for good is the next soft fork on Bitcoin, which will introduce a new type of digital signature called Schnorr and the new Taproot smart contract scheme. These innovations will significantly increase the complexity of creatable contracts without increasing the size of their settlement transactions.

It is important to note that what distinguishes Bitcoin’s approach to smart contracts more than the Ethereum approach is the fact that Bitcoin holds most of the complexity at the application level: it is the clients who will have to store the transactions for all possible contract outputs in the user’s local memory, thus using the blockchain only for the final settlement of the winning outcome. On Ethereum, on the other hand, smart contracts are executed in their entirety on the blockchain with global consensus, thus limiting their future development and users‘ ability to carry out independent auditing of the system due to the excessive amount of data to be validated.

DLCs are the first step in creating truly decentralised and peer-to-peer finance, where it will be possible to engage in arbitrarily complex financial relationships with untrustworthy counterparties without having to switch from traditional finance gatekeepers. It is important to keep in mind that building the technological infrastructure to make this possible without compromising the decentralisation of the system is an enormous undertaking, which will require years of work and the allocation of many resources to finance its development, but the way to create a real alternative finance is now marked.

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