Cointime

Cointime

Download App
iOS & Android

Revolutionizing Bitcoin DeFi: DLC.Link and Mind Network's Pioneering Partnership Unveiled in #MindChats Episode

Validated Project

The second episode of #MindChats aired on February 2, 2024. This time we had the privilege to host the cofounder and CEO of DLC.Link, Aki Balogh, as our guest. This episode of #MindChats was hosted on X Space by Christian (Head of BD & Marketing at Mind Network). It highlighted how smart contracts are revolutionizing the Bitcoin ecosystem and emphasized the importance of partnership between Mind Network and DLC.Link. They aim to disrupt and revolutionize the DeFi and Bitcoin ecosystems by challenging traditional perceptions. More than 17k people tuned in for the episode within 12 hours.

4:39 Quick overview of DLC (Discreet Log Contracts)

5:50 Bitcoin DeFi ecosystem and trends

11:09 Evolution of DLC

13:49 How does DLC.Link play out in the Bitcoin DeFi world

16:50 What is “Discreet” in the DLC?

19:51 Pros and cons of DLC.Link over alternatives

27:00 DLC.Link Infrastructure

28:50 Use cases and current market interest for DLC

30:00 Potential to use a DLC with Bitcoin and tokenize treasuries

32:00 DLC future prospects

  • To make Bitcoin usable in the DeFi ecosystem, Wrapped Bitcoin (WBTC) was introduced. Here, a depositor takes Bitcoin and sends it to BitGo which puts the token in its vault before issuing an ETH token to allow users access to DeFi services. 
  • But BitGo, a licensed custodian, is a CeFi Institute. So, what if something happens to BitGo, like a regulatory crackdown? 
  • Since BitGo is holding its users’ Bitcoin, it poses a high risk. 
  • To counter this issue, DLC is using a self-custody mechanism, under which a user puts her Bitcoin in a DLC lockbox that only pays out to her. No third-party involvement. No centralized control. 
  • Discreet Log Contracts (DLC) is enhancing Bitcoin’s smart contract capabilities, with its dlcBTC token.
  • It introduces private peer-to-peer financial contracts on the Bitcoin network.
  • Instead of bringing DeFi on Bitcoin, DLC is crafting ways to have Bitcoin in the DeFi ecosystem. 
  • DLC.Link is not a chain. It offers a kind of Bitcoin interoperability without introducing another chain. 
  • It has a partnership with Maple Finance to allow the use of Bitcoin in the DeFi industry. 
  • DLC’s focus is on ensuring confidentiality and MindNetwork’s encryption technologies - FHE+ZKP Data Rollup (MindLake) and FHE Stealth Address Protocol (MindSAP) - will play a pivotal role in this endeavor. 
  • Here, the validator (called Oracle) will not know who the parties are.
  • Oracle just publishes the data and its attestation. Thereafter, the parties grab the data and settle their Bitcoin transaction.
  • Integration of FHE into platforms like DLC.Link will enhance transaction security and confidentiality.
  • FHE allows computation on the encrypted data without decrypting it. It is contrary to traditional encryption schemes, where data needs to be decrypted before any computation can be performed on it. 
  • FHE can be used to decentralize and streamline KYC/AML procedures, adding an additional level of security and confidentiality. 
  • It is distinct from ZK technology for its multiple use cases, especially the possibilities for third-party encrypted computation.

For Mind Network, “Data rights are human rights.” It aims to create an infrastructure for the internet that empowers global citizens to control their data. Mind Network is a Zero Trust layer, securing all transactions in the Web3 world by combining Fully Homomorphic Encryption with Stealth Address Protocol (FHE DK-SAP). It helps Web2 and traditional finance services to enter Web3 while complying with regulators.

Comments

All Comments

Recommended for you

  • Analyst: Bitcoin's recent surge may have given investors a false sense of security

    George Milling-Stanley, Chief Gold Strategist at Dow Jones Global Investment Management, believes that the recent surge in Bitcoin may give investors a false sense of security. Milling-Stanley stated, "Simply put, Bitcoin is an investment seeking returns, which suggests that investors are flocking to Bitcoin for capital gains, not because they see the value or use of Bitcoin." The launch of options based on spot Bitcoin ETFs last week may be related to this, as options allow investors to bet on the price volatility of Bitcoin with less cash instead of buying Bitcoin itself.

  • UK court dismisses Craig Wright's appeal against COPA

    On November 29th, according to BitMEX Research, the UK Court of Appeals has dismissed Craig Steven Wright's (CSW) appeal against the Cryptocurrency Open Patent Alliance (COPA), ruling that he lacked any substantive basis. In the case, CSW also complained that the court had adopted evidence from @lopp (James Lopp), but @lopp did not appear as a witness, which the court found to be unfounded. CSW's attempt to prove his claim as the author of the Bitcoin white paper, Satoshi Nakamoto, has once again been thwarted.

  • Binance will delist Gifto (GFT) spot trading pairs

     Binance has announced that deposits for Gifto (GFT) have been suspended as of November 29, 2024 due to potential security issues with the GFT smart contract. Binance may reopen GFT deposits if they deem it safe to do so, but will not issue any further announcements. Binance has decided to delist and cease trading for all Gifto (GFT) spot trading pairs on December 3, 2024 at 08:00 (UTC).

  • Japan's Financial Services Agency warns 5 unregistered overseas cryptocurrency exchanges

    On November 29th, according to CoinPost, the Japanese Financial Services Agency issued warning letters to five unregistered overseas cryptocurrency exchanges. These exchanges include KuCoin, bitcastle LLC, Bybit Fintech Limited, MEXC Global, and Bitget Limited.

  • Stablecoin issuance protocol usdx.money completes $45 million in financing

    On November 29th, stablecoin issuance protocol usdx.money completed a $45 million financing round, bringing the project's valuation to $275 million. NGC, BAI Capital, Generative Ventures, UOB Venture Management, and others participated in the funding, with some investors contributing through warrants. Existing supporters of the project include Dragonfly Capital and Jeneration Capital.

  • Russian President Vladimir Putin officially signs digital currency tax law

    Russian President Vladimir Putin has signed a law regulating the taxation of digital currencies. According to the law, digital currencies are recognized as property. This also applies to currencies used for foreign trade payments within the experimental legal framework (EPR) in the field of digital innovation. Mining and sales of digital currencies are exempt from value-added tax. Operators of mining infrastructure must report to the tax authorities issuing cryptocurrencies for using their services. Failure to submit such information on time may result in a fine of 40,000 rubles. In terms of personal income tax, digital currencies obtained through mining will be classified as physical income (usually used when goods or services are paid for instead of currency). The value of the income currency will be determined based on market quotes. Such income will be subject to progressive taxation, taking into account tax deductions for mining costs. At the same time, the acquisition, sale or other circulation of digital currencies will be subject to two-stage personal income tax rates (13% for income up to 2.4 million rubles, and 15% for income exceeding this amount). They will be included in the same tax base as securities, bank deposits, and other sources of transaction income. As for corporate income tax, digital currency mining will be subject to the standard tax rate (25% from 2025 onwards).

  • Taiwan forces cryptocurrency providers to register for anti-money laundering

    after authorities imposed fines on two cryptocurrency exchanges for related violations, Taiwan, China has advanced new anti-money laundering (AML) regulations for cryptocurrency businesses. On November 27, the Financial Supervisory Commission (FSC) announced that the upcoming registration requirements for anti-money laundering for cryptocurrency exchanges would be postponed from the previous deadline of January 1, 2025 to November 30. According to previous notices, virtual asset service providers (VASPs) that have not registered with the government may face up to two years imprisonment or a maximum fine of NT$5 million (US$155,900).

  • Supreme People's Procuratorate: Enhance the ability to combat money laundering crimes using new technologies and products such as virtual currency

    newly revised "Anti-Money Laundering Law of the People's Republic of China" will come into effect on January 1, 2025. The Secretary of the Party Group and Procurator-General of the Supreme People's Procuratorate, Ying Yong, emphasized the need to strengthen cooperation to combat money laundering crimes, accurately grasp the provisions of the revised anti-money laundering law on improving the scope of upstream money laundering crimes, and implement the anti-money laundering law and the criminal law's provisions on "money laundering" in a comprehensive manner. Accurately apply the "Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Application of Law in Handling Criminal Cases of Money Laundering," deepen the three-year action to combat and govern illegal money laundering crimes, punish money laundering and related crimes in accordance with the law, enhance the ability to combat money laundering crimes using new technologies, products, and businesses such as virtual currencies, and form a joint force to combat money laundering.

  • Hong Kong Central Bank to Subsidize Companies Issuing Tokenized Bonds

    Hong Kong Monetary Authority (HKMA), Hong Kong's central bank, has launched a program to subsidize part of the cost of issuing tokenized bonds in order to encourage more tokenization in its capital markets.

  • Gitfo: GFT token contract has been leaked and investigation is ongoing

    Gitfo posted on X platform stating that the GFT token contract has been leaked and more GFT tokens have been issued, reminding the community to be aware of the serious security incident involving the GFT contract. Currently, investigations are ongoing and the severity of the situation is being understood, with necessary measures being taken. It is reported that Gitfo has requested all exchanges listing GFT to stop trading the token and is working to resolve the issue.

Daily Must-Read

Popular Activities

Delysium $AGI & AI Private Yacht Party

Delysium $AGI & AI Private Yacht Party

March 27 - March 27
Seoul

Popular Tags

Cointime
News
Contents
RSS
Company