Well, this is very cool. I especially like that they used bitcoinj to make the prototype I wonder if they would open source it?

I thought from the title that this was some generic way to run any arbitrary Yao-style circuit integrated with Bitcoin, but it seems less ambitious - though I think the multi-party lottery scheme still rates as the most advanced usage of script yet found in the wild.

Does someone want to summarise their protocol? It's something that should be on the Contracts page, IMHO, but I found their paper to be highly obfuscated (they invented their own notation for scripts and things) and right now it's 1am and I can't concentrate enough to turn what they're doing back into something more understandable.