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· 18 min read

With 10101 you can use your bitcoin to trade self-custodially and without counterparty risk. This means that you don't have to give us your sats to trade, and that your profit is guaranteed if you make smart decisions. In contrast, when you trade on a central exchange, you have to put money in someone else's wallet, and you have no assurance that the exchange will fulfil their part of the deal.

Simply put, with 10101 your Bitcoin investments are secure. This is possible thanks to Discreet Log Contract (DLC) channels, the topic of this post. In the next sections we will explain how 10101 uses DLC channels to enable self-custodial and counterparty-risk free trading on Bitcoin. We will also touch on the inner workings of the DLC channel protocol.