What "is" actually the LINK token

[Anonymous No.23926702]

Why can't I just pay 5$ with paypal or cc everytime i wanna use the oracle?

[Anonymous No.23926742]

>>23926702
This will be my good deed for today, 1 spoonfeed.

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 $100. You wouldn't select the low rep/low collateral available nodes for something like a huge bond. Chainlink is actually targeting these high value contracts. Sergey has discussed at length why high value contracts in the financial world require a decentralized oracle: it puts all the risk onto the oracle rather than the smart contract creator. The smart contract creator doesn't risk losing money - the node operators do. The Chainlink network is genius like that.
There is infinite amount of collateral available because the token price can rise to meet it.
Now you have to research how large ALL these markets are. derivatives, insurance etc... hint: Trillions.
Is 1000$ really possibly in say the next 3-4-5 years?

[Anonymous No.23926744]

token not needed

[Anonymous No.23926752]

>>23926742
Tl dr?

[Anonymous No.23926771]

>>23926742
why can't they store ETH ?

[Anonymous No.23926780]

>>23926742
3 is false. iExec has oracles

[Anonymous No.23926830]

>>23926742
thanks for the writeup, this token is worthless lmao

[Anonymous No.23926846]

>>23926742
How does all of this account for the huge fluctuations in price per Link that can occur as an openly traded, and quite frankly heavily manipulated, crypto currency?

[Anonymous No.23926876]

>>23926771
Transfer and call functionality is unique to the link token. It allows payment and data delivery in one transaction.

[Anonymous No.23926947]

>>23926876
why can't you just create a smart contract that does that but with ETH?

[Anonymous No.23926959]

>>23926947
just dont buy Link. saves you the time to think about these things

[Anonymous No.23926963]

>>23926947
Same reason printers only take one kind of cartridge. To force you to use their token. However once the specifics have been ironed out, I don't see why BTC, ETH, USDT etc can't be similarly staked with smart contracts.

[Anonymous No.23926973]

>>23926959
i have some LINK though. still curious

[Anonymous No.23926986]

>>23926963
so its a sergey pnd scam

thanks

[Anonymous No.23926995]

>>23926947
Dude, Sergey is Satoshi. Just buy and stfu. Alternatively, go ask the team in telegram or discord.

[Anonymous No.23927130]

>>23926846
>some dumbass has $2m in link
>use $1m to guarantee something
>weird shit happens and an ambiguous outcome results in losses for everyone
>lose $1m staked
>tokens distributed to the counterparty who has no need of link and market sells them
>amazon sees record sales of helium tanks

in its current incarnation, assuming it works flawlessly (still a big if), it's fine for guaranteeing shit like anons betting small amounts on elections and even then shit can fuck up, but a traditional company with pet lawyers would rather just use an insurance company or sue the counterparty instead of playing some games for a token

[Anonymous No.23927159]

>>23926742
>"will", "you will see", "would be"
Why are these crypto project all talking about future and not present use? I hear it all the time for the past 4 years that every token is "going to be used this way" but it's never happening in the present moment.

[Anonymous No.23927177]

>>23927159
We’re crossing the chasm bro

[Anonymous No.23927217]

>>23926702
why would you need to use oracles anyway lol

[Anonymous No.23927428]

You forgot the part where Sirgay is dumping and ass rapes your gains every week on binance.