
Tiny $217 Options Trade on Bitcoin Blockchain Could Be Wall Street’s Death Knell - elmar
https://www.coindesk.com/tiny-217-options-trade-on-bitcoin-blockchain-could-be-wall-streets-death-knell
======
aazaa
The article is light on technical details, but it looks like an "oracle" is
being used to arbitrate the contract.

The Bitcoin block chain (or Ethereum for that matter) knows nothing about
options prices or rules. The oracle would programmed to provide a signature
(or reveal an outcome-dependent hash preimage) at various points in the
option's lifetime. This allows the winning party to claim the money in the
contract.

The same concept can be used for prediction markets and gambling. The
limitation in each case is that the oracle becomes a point of attack. The
larger the value in the contract, the more incentive to attack.

