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Subject: Re: [Bitcoin-development] BIP - Hash Locked Transaction
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--089e014933e6d1ac1304f7e38048
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It is also useful for betting: an oracle will associate a hash with each
possible outcome, and when outcome is know, it will reveal a corresponding
preimage which will unlock the transaction.
This approach has several advantages over approach with multi-sig script:
1. oracle doesn't need to be involved in each specific transaction
2. resolution is same for everyone who makes a bet on a specific event
outcome
3. no need for two-way communication
4. no need for a special protocol: oracle might publish unlocking preimage
on a web page, and participants will manually enter it into their clients
--089e014933e6d1ac1304f7e38048
Content-Type: text/html; charset=UTF-8
Content-Transfer-Encoding: quoted-printable
<div dir=3D"ltr"><div class=3D"gmail_extra">It is also useful for betting: =
an oracle will associate a hash with each possible outcome, and when outcom=
e is know, it will reveal a corresponding preimage which will unlock the tr=
ansaction.</div>
<div class=3D"gmail_extra"><br></div><div class=3D"gmail_extra">This approa=
ch has several advantages over approach with multi-sig script:</div><div cl=
ass=3D"gmail_extra">1. oracle doesn't need to be involved in each speci=
fic transaction</div>
<div class=3D"gmail_extra">2. resolution is same for everyone who makes a b=
et on a specific event outcome</div><div class=3D"gmail_extra">3. no need f=
or two-way communication</div><div class=3D"gmail_extra">4. no need for a s=
pecial protocol: oracle might publish unlocking preimage on a web page, and=
participants will manually enter it into their clients</div>
</div>
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