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/biz/ - Business & Finance

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15055718 No.15055718 [Reply] [Original]

It seems to me the token serves no purpose other than funding Sergey's Big Mac purchases

>> No.15055740
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15055740

>>15055718
it's also used to pay shills that constantly flood this board with their spam threads

>> No.15055799

It doesn't
sell now

>> No.15055879

>>15055718

to provide collateral for node operators

there are many incentives in the tokenomics that revolve around the token ..

and yes it needs a token, what kind of tokenless blockchain meme is a solution.

>> No.15056093

>>15055879
No, it doesn't need the token to function. The token us collateral and reward mechanism for nodes. Nodes could perform Oracle function without it if they wanted. This is why if link is a profitable business it will be copied for cheaper.

>> No.15056499
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15056499

>>15055718
The tokenomics of the LINK token.

1. Chainlink nodes will be paid in LINK tokens only. There will be conversion tools for people that want to use fiat but will be converted to LINK. at the end of the day only LINK tokens can power the network since the nature of ERC-677 token, built specifically for LINK, is to transfer data.

2. LINK tokens are used as collateral value. Smartcontracts will use Chainlink nodes that carry a % value of LINK to the value of the Smartcontract. So yes, you can start a node without LINK but no one will use it. High value smartcontracts or any contract that has value will use nodes that carry the same or a % of value of LINK.

3. Decentralized networks that are home to smartcontracts will need decentralized data to execute. Chainlink is currently the only option. Thats why you will see everyone in this space partner with Chainlink

So....

Smart contract creators will demand a certain level of reputation or amount of collateral, to be paid in LINK tokens, that suits the value of their smart contract. A $1million bond would require a lot more collateral, than, say a smart contract dealing with $100. You wouldn't select the low rep/low collateral available nodes for something like a huge bond. Chainlink is actually targeting these high value contracts. Sergey has discussed at length why high value contracts in the financial world require a decentralized oracle: it puts all the risk onto the oracle rather than the smart contract creator. The smart contract creator doesn't risk losing money - the node operators do. The Chainlink network is genius like that.

There is infinite amount of collateral available because the token price can rise to meet it.

Now you have to research how large ALL these markets are. derivatives, insurance etc... hint: Trillions.