Usually, Bitcoin is not considered the most reliable or best for carrying out self-executing payments with conditions. These are popularly known by the term smart contracts. However, it is known to facilitate the most basic programmability which enables users to utilise features which include facilities, such as, time locks and multisig schemes. However, most of the competitive projects, such as Ethereum, Ethereum Classic or Qtum are expected by users to offer more support for carrying out advanced applications.
Although, these assumptions are being nullified by the questions which have appeared into the scene as an outcome of the new research which has been taking place in this market for a long time. For instance, a new project is being led by a mathematician from Blockstream, Andrew Poelstra, puts the magic of cryptography to use which allows them to move smart contracts off the grid from the chain which also provides leverage over Bitcoin’s security without using any sort of additional support for smart contracts associated with the Bitcoin protocol. It is currently known by the name, ‘Scriptless Scripts’.
Using the similar concept and ideology from the project, ‘Scriptless Script’, as mentioned above, there is another similar facility who are initiating their plans to deploy similar facilities for the smart contracts which belong to Bitcoin. This facility is popularly known by the name Discreet Log Contracts, which is shortly known as DLC. This project has come into existence due to the effort and creativity implemented by one of the writers who was involved in the writing of the original white paper for the Lightning Network, known as Tadge Dryja. This individual was presented at the latest Scaling Bitcoin Stanford. DLCs were able to interpret insurance companies which were supported by blockchains, contracts for future and dollars that were pegged with coins and far more topics.
These smart contracts generally, turn out into a phenomenon, popularly known as ‘bets’. For instance, if an individual wants to secure himself against the odds of not being able to travel as there is a probability of a pilot strike which might happen. If the person places a ‘bet’ that there will be a pilot strike and in a turn of event, it happens, the person will win the ‘bet’ and receive payments similar to an insurance payout. On the other hand, if the opposite happens, the ‘bet’ will be lost by that particular individual. As a result, they will lose out on the bet and have to pay similar to the case of an insurance down payment.