[dlc-dev] DLC Messaging and Networking

Thibaut Le Guilly thibaut at cryptogarage.co.jp
Tue Mar 29 03:25:31 CEST 2022


Hi Matt,

Thanks for the answer and clarifications!


> I agree that there should be some type of bulletin board style server
> where offers are published. It seems to me that using IRC servers might be
> the most effective place for this to exist.
>
> Financial contracts such as options, futures, etc. require quick price
> discovery, especially in an often volatile market like Bitcoin. I find it
> difficult to imagine price discovery of these types of contracts occurring
> over a P2P network like Lightning being viable.
>
> Using an IRC server introduces a centralized point of failure, however it
> is easy for clients to have fallback servers in case one server goes down.
> The JoinMarket coinjoin protocol uses IRC and has several fallback servers
> [1].
>

I think indeed a bulletin board will be necessary for some applications,
but I also feel like some others might work without. My personal preference
would be for a protocol that can easily adapt to different use cases, e.g.
both work for more centralized and decentralized sharing of information.
That way decisions on which path to follow can be done at a higher level.
That said it's just my opinion and if most people think IRC is the way to
go it might be fine.


> Note, IRC should only be used for Step 1, since accept and sign messages
> would easily exceed the 512 char limit.
>
Thanks for clarifying.


> As Thibaut mentioned, Atomic has been experimenting with using IRC for
> price and node discovery (mostly for initial communication with a market
> maker) [2].
>
> We decided on using a new message type called `OrderOffer` which is simply
> a `DlcOffer` without funding inputs (to avoid giving away privacy of utxos
> on a public bulletin board). It is currently susceptible to a spam of
> offers from a malicious party, so some type of blacklisting system would
> likely need to be put in place.
>

It feels like several teams are coming up with a similar approach, it would
be really nice to see some convergence here in the specs. It doesn't feel
to me like there are a lot of big decisions to be made (not considering
spam) so maybe someone should just go ahead and write something down.

Cheers,

Thibaut
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