4 posts tagged with "dlc"

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.

This is the third and last part of the series on how to bring DLCs to Lightning. Check out the first two blog posts if you haven't already.

• Part 1: A quick overview of Lightning, Adaptor Signatures and DLCs.
• Part 2: Discusses an approach of expanding the commitment transaction with a custom output.

In part 3, we are going to show you how 10101 is utilizing virtual channels to bring DLCs to Lightning.

In the first part of this series, we provided an overview of Lightning, Adaptor Signatures and DLCs. If you need a refresher, you can find it here.

In part 2, we will now delve into the approach of expanding the commitment transaction with a custom output. This was our first attempt at bringing DLCs to Lightning.

At 10101 we are working on extending the Lightning network to support DLCs, allowing Bitcoiners not only to pay and receive payments, but also to trade right from their channels.

In this series of blog posts, we will delve into how 10101 brings DLCs to the Lightning Network. The series will consist of three parts:

• Part 1: A recap on Lightning and DLCs.
• Part 2: Exploring the incorporation of a Custom DLC Output on top of the Lightning commitment transaction.
• Part 3: Discussing the integration of a Virtual DLC channel alongside the Lightning channel.