DLC stands for Discreet Log Contracts. These are a type of smart contract designed to facilitate trustless and private transactions. They rely on cryptographic techniques to ensure that the terms of the agreement can be executed without revealing sensitive information.DLCs allow parties to create a contract based on the outcome of an external event, such as a sports match or a price change of an asset. The contract is established between two parties, each of whom deposits funds. The outcome is determined by an oracle, which is a trusted source of information.What makes DLCs appealing is that they do not require the parties to reveal their private keys or sensitive information to each other. Instead, they use cryptographic proofs to verify outcomes while maintaining privacy. This means that even if the agreement is executed, the specifics of the deal remain confidential.In summary, DLCs provide a way to engage in conditional transactions securely and privately, making them an innovative tool in the landscape of decentralized finance.