Layer comparison
Terms used in this lesson
- Oracle
- A system that reports outside information, such as a market price, for use by a protocol.
- DLC
- Discreet Log Contract: a Bitcoin contract whose settlement can depend on an oracle attestation.
- UTXO
- Unspent transaction output: one discrete chunk of bitcoin that can be used as a transaction input.
Experts compare custody, unilateral exit, data availability, capital efficiency, privacy, and failure recovery rather than relying on labels.
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Learn the idea
Layer comparison asks which guarantees remain when coordination fails. Custody asks who can move funds. Unilateral exit asks whether one user can reach Bitcoin without permission. Data availability asks what information must be retained. Capital efficiency, privacy, liveness, fee exposure, and recovery describe other independent trade-offs.
Identify the locked Bitcoin
Name the exact UTXO or bridge custody and the keys or scripts controlling it.
Inspect every idea above to open it.
Channels, federations, rollup-like designs, Ark variants, and other systems have different custody, data, exit, and validation assumptions.
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