Quote from: Degens on Today at 07:08:05 AM

Quote from: Vod on June 18, 2020, 01:12:47 AM

Quote from: joey.rich on June 17, 2020, 03:19:56 PM

Bets are placed and paid out at the protocol level, so you always maintain the private keys to your bets and never send coins to a trusted intermediary.

Pretty serious statement. What protocol level are you talking about?

Non custodial betting exchanges aren't a new thing... they use smart contracts. Not sure how OP plans to accomplish this using litecoin which doesn't have smart contract capabilities though.

Degens uses an audited ethereum smart contract https://github.com/degensprotocol/degens-contract

I'm not too familiar with your diagram, but levels 3 and 7 would both seem to apply to how consensus is maintained here.
PolyCash is a protocol for colored coins. Each currency launched on this protocol runs using a UTXO-based blockchain like Bitcoin or Litecoin.
The consensus paradigm used here doesn't rely on smart contracts.

PolyCash uses a P2P design where nodes remain in sync as long as they agree on parameters that define the currency.
For this eSports stablecoin, nodes maintain consensus on transaction data by referencing data from the Litecoin blockchain.
But transaction data isn't the only information needed to maintain consensus. Info about the betting events plus base parameters for the currency are serialized in the game definition. Nodes verify that they're in sync by comparing hashes of their game definitions with their peers.