- Two crypto enthusiasts recently decided to make a bet, and they used Bitcoin’s blockchain to do so.
- The pair decided to bet about who the winner of this year’s US Presidential Election will be.
- To pull the bet off, they will use an oracle as an Outcome Observer, who will determine the victor.
The Bitcoin network has just witnessed its first-ever discreet log contract (DLC) only yesterday, September 8th. The new development, reported by a podcaster Marty Bent, represents a massive achievement for Bitcoin, and it is likely to be remembered as a very important moment in the project’s history.
The year 2020 has been extremely political. Politics was found everywhere — in the global pandemic, the protests across the US, quarantine, and pretty much every other aspect of life this year.
With that in mind, it should not be surprising that two crypto enthusiasts decided to make a Bitcoin bet regarding politics by using a smart contract.
One of the enthusiasts is known as Nicolas Dorier, who used a DLC to make a bet regarding the US presidential Election of 2020.
I just entered in a bet via a DLC (with adaptor sig) with @Chris_Stewart_5 on the US elections.
He used https://t.co/mkXCUrNHLH
I used https://t.co/wgh1tP17i4 (not ready for others but me yet, will brush up this week and next week + vid) https://t.co/CKclefvG1F
— Nicolas Dorier (@NicolasDorier) September 8, 2020
How did They Handle the Betting?
According to Dorier’s announcement, he made a bet against the founder of Surebits, Chris Stewart. Meanwhile, the two used a third-party oracle to act as the Outcome Observer.
The move is quite interesting, and it will see the Outcome Observer broadcast a signature that one of the participants will be able to use to settle the bet, once the election is finalized. Stewart explained that Nicolas will receive 1 BTC if Trump ends up the victor of the election. Meanwhile, Stewart will win the coin if Biden ends up the next US President.
When the election is finalized, the @OutcomeObserver will broadcast a signature that either I or Nicolas can use to settle the bet.
– If Trump wins, Nicolas will receive 1BTC
– If Biden wins, I will receive 1BTC
– If an "other", outcome happens we will be refunded— Chris Stewart (@Chris_Stewart_5) September 8, 2020
Of course, the two have also taken into consideration the possibility of a third-party candidate winning, in which case they will receive full refunds. Even if something were to happen to the Oracle, they will receive refunds in March 2021.
While products like these are more at home on Ethereum and other similar networks, the fact that someone finally found a way to pull it off on Bitcoin’s blockchain is an important moment for BTC. Not only that, but it might be the beginning of a new trend of betting on Bitcoin. It certainly does confirm that the coin’s evolution and development is nowhere near being over.
