[dlc-dev] DLCs and chainsplits

Chris Stewart chris at suredbits.com
Thu Aug 18 13:40:52 CEST 2022


Hi everyone,

There were some interesting conversations happening on twitter around
Bitcoin and chainsplits. I was talking with roasbeef about LN and
chainsplits[1], and that got me thinking about DLCs and chain splits.

It seems that DLCs are safe across chainsplits UNLESS the contract is
dependent on the token that is a part of a chainsplit.

Imagine you have a DLC based on the BTCUSD market price for 1 year. In
month 6, bitcoin undergoes a contentious soft fork that results in two
blockchains.

Now the oracle has to figure out _which_ market price to attest to,
bitcoin1 or bitcoin2.

DLCs based on blockchain tokens should probably have a "chainsplit" clause,
so the oracle can accurately attest to the "real world" state, and then the
counterparties of the DLC can specify where they want coins going in that
situation.


[1] - https://twitter.com/roasbeef/status/1559977910772965377
[2] - https://twitter.com/Chris_Stewart_5/status/1560227084131336194
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