DLC stands for Discreet Log Contracts. This is a type of smart contract that allows two parties to create a bet or agreement with an external outcome. This outcome is usually determined by an event that is verifiable, such as the result of a sports game or market data.DLCs utilize cryptographic techniques to ensure that both parties are committed to the terms of the agreement without needing to trust one another. The contract itself remains private, as the actual outcome does not need to be disclosed until the event concludes. Once the event is decided, an oracle is used to provide the necessary proof of the result. This allows the contract to execute automatically, distributing funds accordingly based on the agreement made by the parties involved.DLCs are seen as a way to enhance privacy and security in the execution of contracts, allowing for trustless transactions that can be particularly useful in gambling or prediction markets.