Operational & Technical

Can large institutions like Blackrock adopt dlcBTC?

Yes, large institutions can adopt dlcBTC. For those requiring additional control and security, we can facilitate the setup of a private attestor network, allowing them to manage keyshares directly.

What are the smart contract risks associated with dlcBTC?

While DLC Attestors cannot steal BTC, smart contract risks like unlock censorship theoretically exist. We mitigate these risks through rigorous security audits, bug bounty programs, and ongoing monitoring.

Can the DLC oracle be manipulated?

dlcBTC leverages Chainlink's Cross-Chain Interoperability Protocol (CCIP) to securely transfer data and commands between blockchains, ensuring the integrity of cross-chain operations. While dlcBTC itself is designed to be oracle-free, enhancing its security and decentralization, CCIP relies on a decentralized oracle network to securely transfer data and commands between blockchains. However, Chainlink's decentralized oracle network has a robust reputation for security and reliability, minimizing the risks associated with oracle manipulation.

How does dlcBTC handle the onboarding of large Bitcoin holders (whales)?

Whales have two primary options:

• Mint dlcBTC through an existing merchant.

• Onboard as a dlcBTC merchant themselves if they meet the qualification criteria. We carefully vet merchants to ensure they are reputable and capable of serving their clients responsibly.

Can we use a multisig wallet setup for minting and burning dlcBTC?

Yes, a multisig wallet setup is compatible with dlcBTC. This allows for greater flexibility and control, especially for institutions with specific security and operational requirements. We're exploring ways to streamline the whitelisting process for multisig addresses to enhance user experience.

What are the risks for merchants in the dlcBTC ecosystem?

Merchants face reputational and business risks if they fail to return BTC when clients redeem their dlcBTC. This behavior would erode trust, deter future customers, and go against industry best practices. We encourage merchants to act responsibly and uphold the highest standards of service.

Do you use HTLCs?

No, we use PTLCs, which allow for more conditions other than just time.

If dlcBTC depegs, how can the peg be restored?

Market makers can buy dlcBTC and redeem it through other merchants, who may charge a trading fee.

What's the difference between dlcBTC and tBTC?

tBTC uses a custody system with multiple nodes, while dlcBTC is self-custodied and minted by a permissioned set of merchants.

What's the difference between dlcBTC and Stacks sBTC?

Stacks' sBTC focuses on its own ecosystem, while dlcBTC bridges Bitcoin with Ethereum and other EVM chains.

What are the differences between DLCs and atomic swaps?

Atomic swaps are simple exchanges, while DLCs allow for complex conditional logic based on off-chain data.

How are DLCs different from Witness Encryption?

Witness Encryption is a theoretical approach, while DLCs have been developed and tested over several years.

Why is our page not available in certain countries like the USA or those under trade embargoes?

Due to legal and regulatory restrictions, our services are not available in countries where cryptocurrency use is prohibited or where trade sanctions apply. For example, the United States has strict regulations regarding crypto activities, which can limit access to certain platforms. Similarly, countries under trade embargoes or sanctions, like North Korea or Iran, are often restricted to comply with international laws. This is a common practice in the crypto industry, as seen with platforms like Binance and Kraken, which also limit access based on regional regulations and compliance requirements.