/biz/ - Business & Finance

Uses for Chainlink, and sources of value:
1) Deposit for penalty payment on return of bad data
2) Payment for API access on the Chainlink network
3) Smart Contract Platform for scalable and secure off-chain contracts

1 - Deposit for penalty payment on return of bad data

Looking at current use cases, the largest single sector that will be upended by smart contracts is the derivatives market. Totaling all derivative contracts gives us an estimated gross market value of $12.7 Trillion. These contracts are between entities concerning every possible type of investment asset on the planet, and is a market primed for the use of smart contracts.

I think it would be safe to assume, that just as all media has become digital, the vast majority of contracts including derivative contracts will become digital in the future. To make sure these smart contracts are executed with the proper data, Chainlink allows contract owners to subscribe to Chainlink nodes to provide data. These nodes are required to have a certain amount of Chainlinks token (Link) reserved to insures the integrity of the data. In the case that the Chainlink node returns bad data, the node is required to pay this reserve as a penalty payment to the contract owner. How much Chainlink will be held in reserve relative to the contracts value will be decided by the free market

It is possible contract owners would want to fully insure against bad data ruining the execution of a high value contract, meaning that total reserves for penalty payments could be equal to the total of the contract market itself. I believe it is more likely that the market will use penalty payments as an incentive for node operators, and not as insurance. Still, contract owners would want to choose Chainlink nodes with the highest penalty amounts, as they would have a higher incentive to return the best data. This is large part of what gives a node reputation on the network. The higher the reputation, the more business they will get and the more money they will receive. With a higher reputation, a Chainlink node can charge more to access their data. It is impossible to say what percentage of Link will be locked up in penalty payments in regard to the market size, but I personally think 10% is a reasonable number.

Low Estimate – Smart Contracts take over 10% of the derivatives market and 5% reserve for penalty payments gives Chainlink a Market Cap of $63.5 Billion, and a value of $63.50 per Link token.

Medium Estimate – Smart Contracts take over 30% of the derivatives market and 10% reserve for penalty payments gives Chainlink a Market Cap of $381 Billion, and a value of $381 per Link token.

Moon Estimate – Smart Contracts take over 100% of the derivatives market and 100% reserve for penalty payments gives Chainlink a Market Cap of $12.7 Trillion, and a value of $12,700 per Link token.

*note: This is only looking at today’s existing derivative contracts, and does not take into account other contracts not covered by this market, or the growth of the derivative market in the future.

2 - Payment for API access on the Chainlink network

APIs are currently a Trillion-dollar industry, and are growing at an extremely rapid pace, set to triple over the next year. Chainlink allows companies to directly monetize their data sources, which will spur these services into the stratosphere. With smart contracts as a driving force, we will easily see the API industry grow into a $10 trillion + industry in a very short time. Link will be a large part of the value being used in this market, and depending on its velocity as a currency, it will have a large market cap from its use in API access.

Low Estimate – Chainlink is integrated with 10% of the world’s APIs market at 3 Trillion and has a Velocity of 10x/year gives Chainlink a Market Cap of $30 Billion, and a value of $30 per Link token.

Medium Estimate – Chainlink is integrated with 20% of the world’s APIs market at 10 Trillion and has a Velocity of 5x/year gives Chainlink a Market Cap of $400 Billion, and a value of $400 per Link token.

Moon Estimate – Chainlink is integrated with 50% of the world’s APIs market at 20 Trillion and has a Velocity of 3x/year gives Chainlink a Market Cap of $3.3 Trillion, and a value of $3,300 per Link token.

3 - Smart Contract Platform for scalable and secure off-chain contracts

Just as it is possible for smart contract platforms to pull data from the Chainlink network, they will also be able to pull the state of offchain smart contracts that are fully managed and computed by Chainlink nodes. This concept is similar to the Lightning Network for Bitcoin, helping with the scaling issues plaguing current smart contract platforms. Additionally, Chainlink contracts would be accessible by any of the existing or future Smart Contract platforms, private or public, as Chainlink is blockchain agnostic. It is entirely possible Chainlink becomes the preferred smart contract platform, with existing chains simply becoming settlement layers. Currently all Smart Contract platforms have a Market Cap of totaling around 40 Billion. This is an industry prepped to explode in the near future, with little doubt it will reach over 1 Trillion when it reaches mainstream adoption.

Low Estimate – Chainlink is used for computing 5% of Smart Contracts at an industry market cap of 500 million. This gives Chainlink a Market Cap of $25 Billion, and a value of $25 per Link token.

Medium Estimate – Chainlink is used for computing 10% of Smart Contracts at an industry market cap of 2 Trillion. This gives Chainlink a Market Cap of $200 Billion, and a value of $200 per Link token.

Moon Estimate – Chainlink is used for computing 80% of Smart Contracts at an industry market cap of 5 Trillion. This gives Chainlink a Market Cap of $4 Trillion, and a value of $4000 per Link token.

Chainlink will see use in all these industries, and as such to find its true market cap, we have to add up all of its use cases to find the total possible market cap.

Total Low Estimates – Market Cap of 118.5 Billion with a token value of $118.5
Total Medium Estimates - Market Cap of 980 Billion with a token value of $981
Total Moon Estimates - Market Cap of 20 Trillion with a token value of $20,000

*caveats:
1) I am assuming that Chainlink will have a monopoly over the blockchain data services. With its first mover advantage, and the implications of the network effect, I believe this to be a reasonable assumption.
2) For token valuation, I am assuming the full 1 Billion tokens are in circulation. The timeline for the release of the remaining tokens is unknown. Seeing that we are calculating the final valuation of the Link token, it only makes sense to use the full 1 Billion tokens that will be released. If you wish to use the current circulating supply of 350 million, simply multiply the token values above by 2.86.

but link is a meme though
sergay is literally a homeless 5'ft manlet with 1 shirt and a philosophy major

reddit spacing

dont tell them anon

>>11361034
this, that is all you need to know

and jesus, link 20k ... literally ever ... really? who paid for this shill

>>11361029
No point to even try anon. Go look at old btc threads from 8 years ago. Go look at ETH threads two years ago.

There is nothing to compare Chainlink against. The only real question is if Chainlink gets real use or not. If it does having any amount of Chainlink will make you rich as fuck. If it doesn't you lost it all. How much you risk is dependent on how much you believe Chainlink will be used.

>>11360956
Focus on the API market specs. This is the largest driving point in the near future, and will be much more explosive than you've estimated.

>>11360956
BASED AND REDPILLED

>>11361174
we can compare sergay to his former projects though and look at his trackrecord to judge the CEO's success
>https://www.youtube.com/watch?v=1nmLU284fIk
look at his linked in. all projects he started, never completed, and exit scammed on.

Can I ask you a personal question? What brought you to biz?

>>11360956
Chainlink is love. Chainlink is life.

>>11360956
i appreciate your straight fowardness. honestly though more than 70% of people on here dont deserve to know

>>11360956
link is shit. Check em

>>11360956
i'm not selling till 20k.

>>11361077
my fucking dice never came, that faggot scammed me

>>11361029
Why would you assume the full 1 billion token in circulation? Most of the supply should be staked in nodes

>>11361174
I ran similar numbers before investing in Bitcoin. It’s useful to see what potential an investment asset has. When an investment is still highly profitable at 1% of its potential, I find that to be a good indicator.

>>11361310
For this specific post? Or just in general?

Realistic estimate chainlink token 0.30 usd 2025

>>11361589
The “Staked” Link would be covered in the penalty payments section. I find the term “Staked” a little misleading, as it infers that you simply have to leave it alone and profit, when that is not at all how the system works. It is required for penalty payments, and can be lost if data is not properly provided.
That said, “Circulation” might not be the best terminology on my part, as you are right, the deposits for penalty payments will be locked away dependent on a contracts length, and would not be in circulation for that duration. That said, the numbers do include the tokens that will be locked via contracts. Sorry for the confusion!

By my estimates above, 39% to 63% of all Link tokens will be locked away for penalty payments.

>>11361559
If only there was a way for you to initiate payment once the goods have been received, possibly through some sort of API

>>11361801
That's actually something I'm concerned about, if I run a LINK node and for some reason the data I provide isn't good at any point, I would lose all the collateral I have provided. Really scary, in that case I feel like I'd need some kind of insurance in case that were to happen

>>11361801
timeframe?

>>11361857
>ddos a rest api so it returns a 500 error
>???
>profit

>>11361930
That’s the million dollar question. I’m not sure anyone can reasonably estimate it

The concept of Staking with Link is oversold. It is either misunderstood, or blatant lies / shilling. I don’t see it as something an average investor will be doing on their own. One would need a high level of technical competence to not lose all their link in the process. This is a good thing, if Chainlink nodes were all run by hobbyists and prone to failure, this would negatively impact the network. We need the network to be as stable as possible, with backup servers that have full uptime and redundancy.

Let’s assume for a moment that you are technically capable to set this all up. Exactly what data are you going to be providing to the network? Its not like any of us have relevant data that people are going to want to use for contracts, systems or apps.

I do see a niche for monetizing publicly available APIs early on before the companies themselves offer their services on the Chainlink network directly. If a node can build up enough reputation with these public APIs early on, its possible they might be able to stick around long term as a trusted source. After companies have their own APIs directly on the network, our only use would be as a caching server to offer redundancy incase the primary source goes down. I assume this would not pay nearly as well as the primary data provider, of which we would also be paying to access their data in the first place.

If you’re not technical, and even if you are, the best option is likely going to be using a service like Link Pool, or one of its competitors that is surely going to pop up. These guys will do all the hard work for you, and make sure to offer meaningful APIs. Hopefully they will insure you against loss as well. After they take their cut, I would be surprised if you would make more than 6% return using them.

That’s my 2c atleast

>>11361717
I ran the numbers on bitcoin achieving 1% of gold's market cap, and that was enough for me to put every cent my impoverished ass could muster, $150, into BTC at $10.

now I choose to do the same for LINK, and this time I have $140k of it.

my faith in my own judgement has grown considerably.

>>11362066
There is no reason that high value data will be hard to access. More nodes offering data from an api means more security. More nodes accessing an api means the source gets to collect more fees for api calls.

>>11362201
Absolutely, I think we are in agreement!
I imagine like mining, secondary data feed profitability will trend towards zero. Anyone will be able to create another node offering it, until its profitability is no longer worth doing so. As such secondary data feeds will not nearly be as profitable as primary sources that the secondary feeds pull their data from.

All of this is good for the network itself.

pee pee poo poo

>>11362293
I also think that return on LINK deposits will equalise to near risk-adjusted cost of capital plus relatively minor margins on infrastructure costs. the relevant question is what market capitalisation will be supported, and by extension, what kinds of jobs will require which degree of collateralisation.

are there high value adverserial contracts that cannot be devolved to trusted hardware? I tend to think so. are they still economical when required to pay the cost of capital of the required collaterisation? a smaller set, but I think also yes.

>>11361077
Nice, saved. This thread reeks of win.

>>11361055
retarded nigger faggot

>>11362100
What a story, lad. I didn't put time and money into Bitcoin because I've had no use for it. Until a few years ago I've always thought the the train left for serious gains left anyway and I didn't know about Ethereum until last year. I'm far from putting as much as money into LINK as you but it's still worth trying.

>>11361803
nice

>>11361077
checked

>>11361545
>>11361545

kek can you imagine

$2500 eoy

Nice FUD OP, but we're hitting $100k easily.

Surprisingly good non shipl link thread. Is it because the amerimutts are sleeping? Quality thoughts OP

These nodes are required to have a certain amount of Chainlinks token (Link) reserved to insures the integrity of the data. In the case that the Chainlink node returns bad data, the node is required to pay this reserve as a penalty payment to the contract owner.

Who decides that the node returns bas data ?

And, how can you configure this penalty amount of your node ?

you are a delusion bag holder. last person to try and make rational valuations.

>7 post in a row

Them heavy bags

>>11362293
>>11361942
>>11361857
So I guess all brainlet linklets can just use Link pool right, less of a chance to lose collateral

municipal marmalade

>>11362066
that's not what thomas says at all though. he has repeatedly said the goal is to make it easy enough that anyone can run a node successfully.

>>11364140
i hope. fuck linkpool

>>11364164
+1

>>11361001
>Chainlink allows companies to directly monetize their data sources, which will spur these services into the stratosphere
no, link only makes sense as a middleman to noncooperating apis.
If I can sign my own api there's zero reason to use link.
This is the single worst mistake you make, not realizing that link is at best a temporary solution to a temporary problem.
>>11361016
>It is entirely possible Chainlink becomes the preferred smart contract platform, with existing chains simply becoming settlement layers
what the fuck? I can't remember the last time I read something so disconnected from reality.

Meanwhile in reality, link broke all promises from the whitepaper and is going to release a literal json parser, with all hard parts stuffed onto 'third party' especially reputation. Link was supposed to be that 'third party' the whole time and that's where the value was supposed to come from.
It's like somebody promised to make a car that runs on water and then produced a nice looking car with no engine, saying it's good because it means customers can choose whatever water engine they want from third party providers. Yet company's shareholders rather than selling happily calculate how rich they are going to be once everyone on earth is using the company's cars.

>>11364164
why not both? Using it on the test net if great, super simple and nice looking. I'll probably do both to spread the risk around, as well as any other staking services should they launch. The guy who runs Stake.io contributed to the ruby node a lot, so i think it's very likely they will support chainlink in the future.

>>11364046
Linkpool only will give you profit, the 25% fee might seem like a lot but it also covers potential penalties for all involved, so even if a node fucks up you'll never lose a single link, unless something goes terribly wrong, the funds should be safu.

>>11361801
>39 to 63
Lol, pulling numbers out your ass here

>>11360956
All of your faggotcoins are worth nothing. The higher ups in this world are just using your computer power for their own ends. Eventually they will not need them. And if they need extra computer power "they'll" just launch some new shell/pseudo company with a literal picture of a pyramid scheme and you'll all jump on it. Eventually with quantum computers they won't need you but they'll probably still fuck you because you'll let them. Stop throwing your fucking life away. Invest in silver and gold before the reset.

>>11364378
>eventually we'll live in space
>buy sticks and stones

>>11364378
no thanks gold queer. nobody wants your shiny rocks

>>11364401
>>11364421

Well my investment isn't going anywhere but up. Yours will be nothing.

You're just gambling addicts. I'm a businessman.

>>11364564
>I'm a business man

>>11360976
Wrong, only Credit Default Swaps are at 12 trillion, total Size of all Derivatives is at around 600/700 trillion (technically all of them could work much better through smart contracts no matter if exchange or OTC traded).

>>11364808
Ripe

Bunch of 4channers tried to force it as /ourcoin/, during the presale ico phase of chainlink there was a minimum requirement of 300eth to enter the presale. Bunch of anons pooled up together and shared presale links to fill them with their eth.

Coin continued to get shilled and pumped up and hyped for the sibios event that link was attended, whole event turned out to be a flop chainlink had a presentation in a room of like 18 people next to the public toilets, literally no news or partnership came from the event and the coin dumped back to below ico prices and created 1000's of bagholder anons.

Now during this alt bull run lots of anons and took advantage of this and shilling this coin to all the new money and newfags that joined in december and don't know this story.

The coin is HEAVILY manipulated and the supply is dried up from huge whales who accumulated below ICO price to create a artificially lower supply (a lot like REQ) and these people have so much room to dump on all of you faggots to still be in profit when the time comes.

In regards to actual project that chainlink aiming to achieve it's nothing more than a basic json parser for smart contracts, would take like a day to add to ethereum by itself.. literally making links whole concept pointless and definitely no need for a token. Would take a lot longer to get it working with bitcoin but the bitcoin core devs would be able to work out the solution a lot quicker than chainlink will, think that's something worth noting that literally nothing is completed and you're literally just buying a whitepaper, they have only 2 developers and they don't communicate at all with no proven background on either, in fact sergey was involved in a project before chainlink called NxT that he since been abandoned until it was took over by a new developer team

>>11364607
...businessman is a word. Correcting grammar and spelling is cringey enough but you fucked it up. Anyways I'm done teaching you fucking water bottle throwing, fidget spinner buying hodl-to-zero fuckers. Go enjoy your instant gratification on candy crush.

>>11364872
>teaching me

>>11363945

>>11362312
Tired, and played out

>>11363945
I imagine in aggregation if one Oracle returns anomalous data or no data when requested, it will be penalised

>>11364872
I've got some candy for you, tramp.

>>11365558
what happens if you ddos a rest api used in a contract temporarily, so one will respond another wont?

Bumped for read this novel later

>>11365517
Fuck off you worthless piece of shit. You fucking low IQ subhuman. That is probably the only halfway intellectual post in this thread and you're already barking and pissing yourself at it like a retarded little dog because you are incapable of mustering the required intellect to even begin to understand the complexity and depth of that post. Kill yourself.

>>11361857
This needs to be talked about more. What if you are providing API data from something like Bloomberg and it gets fucked up the day it needs to be pulled for your contract? Then what? I lose all my collateralized LINK because Bloomberg shit the bed that day?

>>11366702
Yes you lose all the collateral that was assigned to jobs that require bloomberg data.

>>11361029
is this real life? is this really happening? would this actually happen?

>>11363945
Won't it be if the node returns data that is "x" amount too far removed from the median value of all nodes that return data, it is deemed as bad?

>>11366293
Gay

>>11364193
How does it make sense for them to make a reputation system? Not only does it become centralized, but you are a retard if you don't realize that different sectors of business will value certain qualities in nodes differently.

>>11366745
Possibly, but couldn’t you aggregate data from other sources to cover not getting data from Bloomberg?

>>11366702

Hence the need for more data sources and any contract with a penalty escrow to require more than one data source

>>11366904
>How does it make sense for them to make a reputation system? Not only does it become centralized,

Dude, you don't know what you're talking about Reputation was supposed to work on-chain with random nodes selection, none of that off chain 3rd party rep providers BS with a list of nodes to choose from. May as well call it oracles market place then not a decentralized oracles network.

> but you are a retard if you don't realize that different sectors of business will value certain qualities in nodes differently.
you don't evne know the difference between consensus mechanism and reputation and you have the audacity to call someone a retard?

>>11366847
well I assume the contract creator requested specific API, but even if not I don't know if the node itself will be advanced enough to switch API in case the prefered one failed.

>>11366801
Yes.

>>11364378
Lol. Gold. -4.25% in the last 5 years. Seriously KYS.

>>11366904
you can manually choose the nodes you request from silly
even if there was only 1 reputation contract allowed on chain, someone/some industry could keep their own records of reputation based on their own formula and use that to manually select the nodes they request from

>>11361803
wow so witty and funny, now tell me how does one deter scamming in your hypothetical example?
linkies too stinky

>>11366997
>Dude, you don't know what you're talking about Reputation was supposed to work on-chain with random nodes selection, none of that off chain 3rd party rep providers BS with a list of nodes to choose from. May as well call it oracles market place then not a decentralized oracles network.

There's some truth to this but it makes more sense with the approach now because I think they have an idea of the type of large, quality businesses that will be running nodes. You'll be able to pick your level of decentralization. Banks to banks won't want to trust some NEET in his mom's basement and that's what complete random node selection enables. No serious big financial player will go for that.

>you don't evne know the difference between consensus mechanism and reputation and you have the audacity to call someone a retard?

Not sure what you are getting at here. How consensus is agreed upon is one thing. Reputation is another thing. Consensus can be universally recognized, but reputation can be stretched in different directions. How could a node have just one relevant reputation score that serves both the financial market and law? Especially when that node can host several different APIs...

>>11367285
Yeah I agree with you and this is why they are leaving reputation up to 3rd parties.

20k?
a single token?
im a link marine but that's preposterous.

>>11366997
How much LINK do you hold?

>>11367325
>How could a node have just one relevant reputation score that serves both the financial market and law? Especially when that node can host several different APIs...
and what do you think is reputation? it's a mix of uptime, answer correctness, average answer time an things like that, who cares what industry it is?

Someone here came up with this stupid idea of different reputation contracts for different industries and everyone's repeating it like a brainlet without even thinking about it for a second.

The only thing that would make sense in terms of different industries needs, is the consensus mechanism or answer aggregation mechanism whatever you want to call it, different parameters are important for different needs

>>11367351
they themselves still need to write the reputation contract (uptime, correctness, average reponse time, amount of link, whatever) on chain and create a listing service to bootstrap the network.
People keep repeating this "hurr durrrr 3rd parties, mainnet next week" BS, but they are finishing service agreements now, then reputation, then the listing service, whether and how fast are other reputation providers gonna come out that's another story

20k timeline?
noice.

>>11364808
so 200k per token?

>>11367464
>The only thing that would make sense in terms of different industries needs, is the consensus mechanism or answer aggregation mechanism whatever you want to call it, different parameters are important for different needs.

Dude. This is why different industries need separate reputation scores. You just answered it yourself.

>"hurr durrrr 3rd parties, mainnet next week" BS, but they are finishing service agreements now, then reputation, then the listing service, whether and how fast are other reputation providers gonna come out that's another story

I agree. I don't think we are really that close to mainnet yet. There's a lot to be done. We haven't heard a peep from these supposed 3rd party reputation providers anyway. There hasn't been ANYONE that has come out and said they are planning on working on that aspect of things.

It doesn't matter what industry or purpose you use it for, you will always be working in strings, numbers, or booleans. You can adjust the rigor of the consensus, but the actual content of what's being processed doesn't matter. Context shouldn't matter.

>>11367699
>Dude. This is why different industries need separate reputation scores. You just answered it yourself.
that doesn't make any sense. I already told you what reputation will consist of, it's even in the whitepaper as far as I remember, uptime, corectness, link amount etc, how would that need to be any different based on industry? even in 1 industry some customers could value some things more than others and that's why they will probably be able to sort the nodes by different parameters but the reputation contract itself stays the same. Those parameters for reputation will be the same in every node listing service since they all pull that data from the on-chain reputation contract

>>11361029
Who are you?

>>11367801
he's a typical "finance guy" who doesn't even understand the basics of how chainlink works but all he can do is pull some retarded valuations out of his ass based on
>assuming this
>assuming that
>assuming we get gorillion usd from the derivatives market
etc, it's always the same meme with captruing xyz of a certain industry, then creating 3 scenarios "bearish", "bullish" and something in the middle, making sure that even the most "bearish" scenario gives link ridiculous valuation so that even poorfags with their tiny stacks feel entertained by this larp

>>11367783
Ok. I think I better understand it now. Thanks anon. I was under the impression the reputation scores would have to be different when in fact whatever value is most important to an individual sector can just be viewed and taken into consideration whenever/wherever it's necessary.

Who keeps posting screenshots of every link thread on twitter what the fuck man. Making link look bad. 4chan doesn’t have the highest nor most credible reputation. You think I’m going to invest Because someone wrote out a nice copy pasta shilling link ? Nah bro. Take it easy

>>11367855
Then offer up your own method of valuation. Protip: you can't

>>11368602
there is too many vairables to give any valuations right now, it's just wishful thinking concert at its finest.
he doesn't even understand how penalties work

>>11360956
Is it too late to buy in?

>>11368734
it just dumped again today. buy in before next pump. if you change your mind, just sell at the pump.

>>11368734
Hell, no.

>>11368673
Then adjust his valuation based on your understanding of penalties.

>>11368734
.....what?

>>11368734
You're in a thread where price estimates for this coin range from 300 - 20k. LINK is currently 32 cents and you're asking if it's too late to buy...?

>>11368942
it's impossible to tell, you're basicly throwing darts blindfolded, no one at this point knows how much collateral will be used or if it's even gonna be used in the first place for the most part, but he doesn't understand how consenus and penalty pay outs work, that's what I can tell you right now

>It is possible contract owners would want to fully insure against bad data ruining the execution of a high value contract, meaning that total reserves for penalty payments could be equal to the total of the contract market itself.

as soon as 51% of the nodes provide bad data his contract is fucked and 49% of the honest nodes are fucked on top of that because they got outvoted (majority rule/consensus), so the contract creator would only get 49% of his money in this case. Even less money the tronger the sybil attack

>>11369136
>anon posted numbers in a thread so it must be true you should buy

is 101k enough to buy a nicely spec'd Prius ?..

>>11369195
What if he specified the required penalty payment to be 4x the value of the contract? Then the contract owner would get double the money they lost and the attacking nodes would have risked twice the capital it took to attack.

>>11369335
you still don't know how many honest nodes there will be left, if there is 10% honest nodes left then your 4x still isn't enough. All I'm saying it's impossible to tell in advance how much collateral would be needed to be totally safe, and no node operator will be risking putting his life savings on the line in form of collateral just to make a few bucks off of a call.
The way it's gonna work is probably gonna be that big node operators aren't gonna fuck with any collateral BS because they will have reputation based on proven track record and name recognition alone.
I hope I'm wrong but I'm afraid the whole collateral thing is gonna be mostly a pipe dream for us, token holders hoping that the circulating supply will shrink massively.
Let alone the collateral, with reputation providers and nodes IDs the customers will even be able to totally skip the token by making separate off chain agreements with eachother.

We don't even know the basics of how the market will play out and there are people already trying to estimate some retarded valuation based on some crazy assumptions

>>11369432
It wouldn't have been designed like this if the parties they are working with weren't interested in it though. They don't just chuck this crap in a whitepaper co-authored by Ari Juels just because. Even then, loss of collateral should be a rare occurrence, and you probably shouldn't be staking your entire stack unless you have redundance and contingency plans in place. Reputation will help businesses pick nodes - but reputation with a collateral reimbursement offering will always be preferred to one without. Especially seeing as this doesn't cost the requester anything, just the owner of the node if they fuck up or don't secure it properly.