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Author: bixin venntures; Source: bixin Medium; Translation: 0xjs@作 作 作 作 作 作
Foreword
As the early holders of BTC and the firm supporters of BTC, Bixin Ventures has been committed to the development of the BTC ecosystem.We have always believed that we also hope that BTC assets can play a more important role in the excellent DEFI protocols of each chain and produce greater returns.From this perspective, a safe and efficient cross -chain bridge is essential.Therefore, in the earliest rounds of investment last year, we invested DLC.LINK.
With the rise of Ordinals and the continuous expansion of the Bitcoin data stream network on the chain and under the chain, the diversified trend of Bitcoin applications has occurred.Due to the inherent challenges of Bitcoin’s limited native intelligent contract function, Bixin regards DLC.LINK as a strategic solution.The market has a huge demand for security and decentralized Bitcoin substitutes, especially after the FTX collapse, which highlights the risk of centralized infrastructure.DLC.LINK is in line with the vision of Bixin’s safer and more trustworthy ecosystem, and strengthens the role of Bitcoin in various applications.
DLC.LINK technology
How does DLC use Schnorr signature in the Taproot upgrade?
Bitcoin TAPROOT upgrade has introduced Schnorr signatures, which is a safer alternative to ECDSA for creating and verifying keys.Schnorr’s signature has useful linear attributes, allowing multiple transactions by combining public keys and signatures.Discrete log contract (DLC) uses SCHNORR and PTLC. PTLC is implemented through Taproot, so it is already native to Bitcoin.For DLC, there is no need to use L2 or side chain.Instead, DLC is protected by the entire computing power of the Bitcoin network.
In the use of DLC’s loan scenarios, the SCHNORR signature is used for conditional results.The two sides generate a unique key, combine it with the long -term keys to create a “public key”, and prepare signatures for potential results such as repayment or liquidation in advance.Subsequently, the decentralized proofer network used cautious log numbers to unlock the signature signature signature, thereby triggered the contract execution of the contract on the blockchain, thereby confirming the results of the real world.This shows the adaptability, flexibility and security of DLC in practical applications.
How does DLC protect the security of Bitcoin on the protection chain without verification
The cautious log contract (DLC) inherited the security of Bitcoin by eliminating external authenticants and ensured the security of the chain.In the DLC.LINK architecture, the proofer network is an innovative design.The proofer acts as a chain service, actively monitor the blockchain through smart contracts, and publicly announces the DLC incident through JSON.They have proved that the result is usually the value from the data source, usually a smart contract on another blockchain.In order to enhance security, DLC.LINK uses a 5-OF-7 proof signed method to reduce the risk of co-consignment.DLC.LINK Manager contract randomly select the whitelist to trust the choice.Design selection also allows third -party organizations to operate proof nodes to promote decentralization.Distributed proofs can effectively promote DLC creation and signature requests to avoid single -point failures.This comprehensive design not only confirms the integrity, security and flexibility of Bitcoin transactions, but also establishes DLC.LINK as the ideal infrastructure that combines BTC with decentralized finance (DEFI).
How does Frost Pioneer provide high -level security for DLC
DLC.LINK also integrates Frost (Flexible Round-Optimized Schnorr Threshold Signatures, flexible rotation Schnorr threshold signature) to improve security and simplify proof management.FROST’s key “re -sharing function” stands out, supports dynamic management of the proofer network, and allows rapid adjustment without affecting the integrity of the service.When setting or changing the proof, the collaboration key will be generated.This process creates a shared key and separate shard for each proofer.The flexibility of this key generation mechanism ensures that the proofer network can be modified securely later and will not interrupt the service.
During the announcement of the blockchain incident, the coordinator of the proofer will spread the Create-DLC command, resulting in the DLC announcement supported by consensus.Similarly, to close the DLC, the blockchain incident will prompt the coordinator to coordinate the creation of the DLC certificate. The signature of each proof can ensure the security of the contract and the end of the verification.This advanced upgrade has introduced dynamic adjustment functions to the proofer network, which significantly reduces computing complexity and maintains strict security standards.
Figure 1. DLC.LINK technical process
Dlc.link product
DLCBTC
DLCBTC was launched in early 2024. DLCBTC provided Bitcoin’s non -hosting on the Ethereum network by implementing a cautious log contract (DLC), thereby standing at the front of DEFI.Using DLCBTC, the user “self -packaging” deposits and lock the BTC by themselves, and the proofer is protected by the lock mechanism.DLCBTC depositors will not send BTC to DLC.LINK or any third party.
In this pioneering process, users use the DLC.LINK Bridge to lock it safely into DLC to create equivalent DLCBTC tokens.DLC acts as a security password box on the Bitcoin blockchain, and establishes a pre -signed agreement between users and protocols.It is worth noting that the key distribution adopts a 2-OF-2 multiple signature UTXO mechanism, one of which is held by the user, and the other is intelligently distributed in the trusteor node network.
The bridge is not famous for many vulnerabilities.DLC is a unique solution because they solve the problem of cross -chain communication without considering the security problem of the bridge.Unlike bridges such as WBTC, DLCBTC eliminates the demand for intermediary agencies. Instead, it chooses to protect assets through the entire computing power of the Bitcoin network.The DLCBTC V1 was launched in the first quarter of 2024. It will introduce a whitelist access, strict security measures, multi -functional transactions, and seamless integration with the existing DEFI protocol, marking major progress in decentralized financial fields.
We believe that after Bitcoin, the most decentralized network is Ethereum.Therefore, through DLCBTC, we are committed to introducing native BTCs into Ethereum DEFI without constructing another L2 or solution with a smaller scale, unliked and higher risk.The cast DLCBTC tokens can be used as mortgages in famous DEFI platforms such as CURVE and AAVE. Users can actively participate in DEFI activities such as investment, borrowing and hedge.
DLC.LINK’s application in a wider BTC ecosystem
DLC.LINK is a change of power in a wider range of BTC ecosystems. It provides a series of applications through its cautious log contract (DLC).This innovation is of special significance for various entities such as credit trading counters, main brokers, digital asset custodors, exchanges and off -site trading counters.The integration allows the custodian to extend financial services to Bitcoin customers who are self -custody, custody and conditionally determine the transfer of local Bitcoin in real time, and provide borrowing services to the miners and other self -custody Bitcoin customers.
DLC.LINK’s role in decentralized finance is also extensive and influential.Its integration promotes the development of loans and stable currency supported by Bitcoin mortgaged on the chain, and provides an advantage for the lending agreement.In addition, DLC.LINK seamlessly expand its range to cross -chain protocol, thereby realizing the transmission of native Bitcoin span different blockchain.With the popularity of BRC-20 assets, DLC.LINK can promote its transfer to cross-chain bridge.In addition, it also supports ORDINALS transactions and borrowings on the NFT market and other smart contract -based platforms such as OpenSea, so as to achieve new use cases in DEFI.
Figure 2. DLC.LINK is widely used
in conclusion
The reason why Bixin Ventures invests in the early seed wheel strategic investment DLC.LINK is to promote its seamless integration with decentralized finance (DEFI) and solve the challenges facing the Bitcoin ecosystem.DLC has overcome the restrictions on Bitcoin smart contracts, and provides a security alternative with the strong security of Bitcoin.Taproot’s recent enhancement through Schnorr Signatures helps DLC.LINK to establish a proof network, and the integration of FROST has further improved the dynamic management of proofers.DLCBTC meets the growing demand for security and decentralized self -packaging Bitcoin.In addition, DLC.LINK has a broad potential in promoting a variety of products, including self -custody deposits in CEFI and Ordinals cross -chain in Defi.Bixin Ventures’ strategic measures reflect the promise of shaping DEFI in the future, admit that DLC.LINK’s innovation in the encryption field, and foresee that it provides Bitcoin liquidity in the entire encryption ecosystem.
