Smart Contract Is Deployed On Bitcoin Mainnet
A smart contract has been deployed on the Bitcoin mainnet, once again questioning the assumption that self-executing contracts are only possible on platforms like Ethereum.
Two Bitcoin engineers created the smart contract and tied in 1 Bitcoin in a bet to see who will become the next US president.
Dorier, the developer of BTCPay, made the bet using a DLC about the next winner of the 2020 Presidential Election in the United States: Donald Trump or Joe Biden.
Speaking of the bet, Dorier tweeted:
The bet is built into a smart contract and has Outcome Observer acting as a third-party oracle. It will automatically execute once the race for the White House is finalized, said Stewart.
And speaking of Bitcoin’s smart contract capabilities, Suredbits founder Stewart said:
‘I don’t think [Bitcoiners] need to concede that territory to Ethereum. There are plenty of powerful primitives in Bitcoin that allow you to do advanced applications with Bitcoin.’
What is a DLC Smart Contract?
Until now smart contract technology has been more akin to platforms like Ethereum, but work on adding smart contract technology to Bitcoin has been ongoing thanks to Suredbits.
A DLC allows two or more parties to enter into a smart contract agreement. They are a new type of smart contract which limit the information gained and influence of oracles, and they run on the limited scripting system present in Bitcoin, without the need for more complex languages such as in Ethereum.
‘A very important moment in Bitcoin history’
Prominent Bitcoiner, Marty Bent has been discussing the progress, calling it ‘a very important moment in Bitcoin history.’
Speaking on his popular podcast Tales From The Crypt Bent said it was a ‘massive’ moment for Bitcoin.
The renowned Bitcoin maximalist, went further saying, DLCs were the best form of smart contracts, claiming they would scale much better due to the scarce block space needed than those on competing blockchains.
‘DLCs may be the least appreciated killer application of Bitcoin out there right now,’ said Bent. ‘It will be very interesting to see the types of applications that begin to proliferate as more people come around to this type of smart contract.’
And Bent believes the technology will advance quickly as wallet software will become available to anyone who wants to construct DLCs.
Slowly but Surely for Bitcoin
Many have criticized Bitcoin in the past for being too conservative. Its slow but steady and security first focus has led many detractors to berate Bitcoin.
Vitalik Buterin decided to create Ethereum because Bitcoin ‘couldn’t handle complex smart contracts’. Roger Ver was the most vocal, as always, during the block-size debate and decided to help launch BCash because according to him and the bigblockers ‘Bitcoin can’t scale.’
But Ethereum and BCash have little and no credibility, as investors and knowledgable insiders understand the importance of security and decentralization.
Slow and steady is proving to be the most successful way of building decentralized, self-executing contracts, especially when they’re built on a platform of value.
For a new economy, security is crucial, so slow and steady is critical. But as we see, with the right minds working on Bitcoin, slow and steady is proving to be a race winner.
Author: Pablo Clarke
How do you make money with Bitcoin?
There are many ways to make money with Bitcoin. The most obvious way is to mine Bitcoin. Bitcoin mining is the process of verifying transactions, and helping to secure the Bitcoin network. Bitcoin miners are rewarded with bitcoins for their work.
Can I get into Bitcoin with no money?
Absolutely! Bitcoin is like other investments and currencies. If you have some money to invest, you can make more faster by buying Bitcoin. You can lose more faster, as well if you don’t know what you’re doing. But if you don’t have any money to invest you can earn free bitcoins from playing games, learning about cryptocurrencies, or offering your skills for Bitcoin.
Why should I buy Bitcoin?
People who understand Bitcoin buy Bitcoin because it is a peer-to-peer money that nobody can manipulate. It’s all set in the Bitcoin codebase which is secured by hundreds of thousands of computers all around the world. Bitcoins can be sent by anybody and no third party is need to verify the transactions, and nobody can stop Bitcoins being sent. There are many more reasons why people buy Bitcoin, and a deeper dive before doing so is recommended.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.