Discreet Log Contracts (DLCs) DLCs let two parties bet on real-world outcomes (price, sports, weather) with on-chain settlement, without revealing contract terms on chain. The oracle never knows about the bet; the chain only sees a 2-of-2 multisig + a CET that looks like an ordinary cooperative spend. Original 2017 paper: Tadge Dryja. Modern specs: DLC Specification working group ( ). Core mechanism 1. Oracle setup (one-time): - Oracle has long-term key . - For each event, oracle publishes nonce in advance. - Oracle pledges: when event happens, publishes such that where . 2. Funding (party se…