The Dawn of Bitcoin Betting Contracts
In a groundbreaking move, two crypto aficionados have placed a bold $10,000 bet on the outcome of the U.S. presidential election using Bitcoin’s newly introduced discreet log contracts (DLCs). This unexpected twist in the world of cryptocurrency highlights the intersection of politics and digital assets—a match made in virtual heaven!
Meet the Betters
In one corner, we have Nicolas Dorier, the self-titled savior of BitPay and mastermind behind BTCPay. In the other corner, Chris Stewart, the brains behind Suredbits, who’s not afraid to put his Bitcoin where his mouth is. Their wager? Who will emerge victorious in the 2020 presidential election: Donald Trump or Joe Biden? The stakes are high, and the Back-and-Forth Banter? Off the charts.
How It All Works
So, how does this digital betting work? The duo used a DLC framework which allows participants to secure a bet that hinges on a future event. Once the election dust settles, a third-party oracle—known as the Outcome Observer—will step in to sign off the results, with either Dorier or Stewart walking away with a shiny Bitcoin. It’s a bit like high-stakes poker, but in the world of crypto, where the cards come loaded with programming magic.
What Happens if There’s a Twist?
Now, if a third-party candidate swoops in and steals their glory? No problem! Thanks to some crafty coding from Dorier, both parties are entitled to full refunds. In the event that the oracle pulls a Houdini and disappears right before the outcome is revealed, they even have signed refund transactions ready for execution in March 2021. Talk about being prepared!
Stewart’s Vision for Bitcoin’s Smart Contracts
There’s a prevailing sentiment that smart contracts are primarily the domain of Ethereum and co., but Stewart argues otherwise. He asserts that Bitcoin has powerful primitives that can hold their own in this arena. “We don’t need to concede any territory to Ethereum,” he says, embodying the classic Bitcoin ethos of security over complexity.
Bitcoin’s Future: Slow and Steady Wins the Race?
As the podcaster Marty Bent underscores, this development represents a significant moment in Bitcoin’s history. He emphasizes that while some criticize Bitcoin for being sluggish in its evolution, this cautious approach has led to opportunities that are now coming to fruition. DLCs may very well be the ‘killer application’ that Bitcoin enthusiasts have been waiting for without even realizing it. The story doesn’t end here; it’s just beginning, and many are left wondering: What’s next in the world of Bitcoin and smart contracts?
