Multisignature is a digital signature scheme which allows a group of users to sign a single document. Usually, a multisignature algorithm produces a joint signature that is more compact than a collection of distinct signatures from all users. Multisignature adds additional security for cryptocurrency transactions. Wikipedia__
An essential piece of information is understanding how multi-signature (multi-sig) Bitcoin wallets operate. At it's core, a DLC is simply a 2-of-2 multisig that uses an Oracle to produce all possible outcomes relative to (in the below image) Alice and Bob's contract.