/biz/ - Business & Finance

>>18920544
As a Smart Contract Dev, I don't see a practical use for LNK.

Take me and the company I work at. It's a rather centralized product as far as blockchain goes (need it's own website, IP assigned, possibility to upgrade the smart contracts without migrating them, etc...)
We need a GBP/Eth oracle in our product for KYC reasons. It's cheaper to do oracles by yourself, and will cost less gas for user. If we get the price wrong, only us suffer from it (we make less money by refusing a potential client or could get in trouble with AML laws). There is no need at all for a decentralized oracle if the one suffering for getting it wrong is the one publishing the oracle.

If you are aiming for a true decentralized oracle, then the cost for the person setting up the oracle getting it wrong need to be higher than the potential gains of setting it up wrong.

With current LNK implementation
>Potential loss are finite, and made even lower by the ability to "borrow" voting tokens
>Potential upsides are infinite if you are using the orcale to place leveraged bets on the outcome of an oracle (could be ofc a currency pair price, but also football game result, etc...)

Basically you can't trust it for shit.
Want a reliable ETH/USD oracle ?
The person publishing the price need to be contractually obligated to buy/sell at this price in amounts higher than what the people using this oracle are commited to. This way if the oracle lied, the "victims" of the lie can cash out at the oracle price.
This is currently impossible on-chain.