How it Works

How it Works

The key breakthrough in SCL's design is its decoupling from an inefficient public distributed ledger. To this day, smart contracts have always been directly linked and integrated with a native blockchain layer.

We achieved this by taking the novel approach of trading Bitcoin unspent transaction outputs (UTxOs) as Single Use Cryptographic Seals where the breaking of a seal represents an amendment to a contract state and usually references a new UTxO to act as the subsequent unbroken seal.

By disrupting this long standing paradigm, Dark Fusion transforms the way Web3 applications are built, greatly adding efficiency, scalability, reliability, and low costs in the process.

SCL is a layer-independent smart contract modeling language that can operate and execute on layer 1 and layer 2 UTxO solutions such as the Bitcoin Network, and Lightning Lab’s Lightning Network. Ultimately finality is always settled to layer 1, as is the standard on the BTC lightning network, which in turn gives us certain cryptographic guarantees about the state of our assets.

By operating in this way, SCL inherits the efficiency and scalability of the network's solution it is executing on, while gaining the benefits of the decentralisation and distribution of its underlying blockchain, leveraging the very best of both worlds, and passing through these benefits to third party apps and the Dark Fusion Product Suite.