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Add "Stabilizing bitcoin value" page - #1067
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rabbitholiness
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rabbitholiness
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Looks good to me. Didn't find anything to nitpick on. I also checked all the links on the page. 👍
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@sbddesign may I ask you for your review on this one, since you wrote the original draft? |
bonomat
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bonomat
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Nice write up and thanks for mentioning 10101 :)
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| - The oracle goes down, so the smart contract no longer knows what the real-world price is. A default path in the DLC must be exercised and the user reclaims their original quantity of bitcoin but loses the price stability. |
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As long as Robert and Alice cooperate they don't need the oracle. The oracle is only needed if the two do not cooperate.
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I would also mention that to mitigate the risk of having the oracle going down, it is possible to have a quorum of oracles.
As for the risk of exchange rate discrepancies between the different sources used by these oracles, it is also possible to average them out.
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That's interesting. I assumed the process was fully automated based on the oracle data, but sounds like the oracle is there for conflict resolution.
So what's the process for Robert and Alice to cooperate on this? One of them requests a "closing" of the contract with a specific outcome, and the other has to agree/sign?
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So what's the process for Robert and Alice to cooperate on this? One of them requests a "closing" of the contract with a specific outcome, and the other has to agree/sign?
Yes exactly. We call it collaborative close. In general it behaves similar to how lightning resolves HTLCs:
Look, I know the secret, I could go on-chain and get the money from the HTLC ... or, we could resolve this off-chain vs. Look, the oracle would say price is X, I could go on-chain and get the money ... or, we could resolve this off-chain.
Obviously, if the oracle is not there anymore, a non-cooperative party could keep the money hostage or say you have to go on-chain... and if then there is still on oracle, a refund would come into play and both parties would get their money back.
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I updated the text (not where you left the comment, but a bit further up the page where oracles are first described). Thanks for the input.
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| - [Tokens](#tokens) | ||
| - [Synthetic currencies](#synthetic-currencies) | ||
| - [Discrete Log Contracts (DLCs)](#discrete-log-contracts-dlcs) |
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There is one more category which you could write about: Stable Channels see Tony's tweet here: https://x.com/tonklaus/status/1743179494524121559?s=20
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Thank you. I'll open that up as a separate issue once this PR is merged.
Co-authored-by: Philipp Hoenisch <philipp@hoenisch.at>
…m/BitcoinDesign/Guide into feature/stabilizing-bitcoin-value
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I made a few copy tweaks based on feedback, and also updated from master. Ready for another review. Thanks in advance. |
Adds a new page to the How it works section about stabilizing bitcoin value relative to other currencies.
🙅Check the preview🙆
Closes #866