/biz/ - Business & Finance

Chainlink is making another apex move
And, as usual, the space is too stupid to understand

Ever wonder why a cash cow like google does things like fiber?
They're capital/labor intensive and they don't make nearly the money that their core businesses do

In the same vein, it makes no sense for chainlink to invest in an execution layer like BBCA
The L1 blockspace/execution market was always a scramble to the bottom, just like bandwidth
So why dominate the intrinsic monopoly, highly profitable parts of the stack and then backtrack and go for execution?

It's all about platform vs company. If you're a company your goal is to dominate verticals. If you're a platform it's to facilitate novel applications and have them fully, completely, wholly owned. And in a way that they don't really care.

So guess what's going to happen to BBCA? Are they gonna release the best L1 and then just let the market decide?

Nope

They're gonna give it away for free.

And let me be explicit: input and output data will always cost you dearly. Offchain compute will always be under a DON. Crosschain, deco, fss, por, all the intrinsic monopolies will always be the cash cows. But the true primitive (simple token/value transfers) that arise from all of the above will be free. Assuming, of course, that you're under the chainlink umbrella. Which means that you have every incentive to support chainlink being a monolithic monopoly. From financially to politically to ideologically. This is the kind of shit Schmidt was brought on for.

Expect the same long testing and beta periods of all their other products. But BBCA will also be the standard, just like everything chainlink does.