/biz/ - Business & Finance

[Anonymous No.11455102]

In order to provide sufficient collaterals for smart contracts involving large monetary values, node operators have to stake large amount of LINK running the nodes, to ensure honesty for reporting faithful and accurate data. And in order to take provide take advantage of the decentralized oracle function, multiple node operators will report the same data.
So here is my question, say if I'm going to launch a smart contract involving monetary value of $1,000,000, and demand data in order to trigger the smart contract, node operators have to stake at least $1,000,000 value of LINK as collaterals. And in case 50 node operators are involved in this oracle function, LINK equivalent to $50,000,000 is now on stake. These node operators expect decent returns from staking and reporting accurate data (particularly given that US treasury rates are over 3%). Say these node operators expect a return as low as 0.01% per data reporting, it would cost the smart contract $5,000 just to retrieve a single data from the oracle, plus the network fee of the smart contract operating on Ethereum. And obviously this cost is going to significantly increase for complicated smart contracts that involve retrieval of multiple data.
So it seems that the cost of operating a single smart contract, apart of it's cost of writing a smart contract, is indeed quite high, in order to justify the attractive return provided to the node operators. How easy is it to promote these smart contract in everyday life, especially one of the major argument for choosing smart contract over conventional human based "contract" is to save cost? Or did I misunderstand the concept of operation of a decentralized oracle?

[Anonymous No.11455221]

Poop

[Anonymous No.11456335]

>>11455102
there's flaws in your logic due to the fact that you don't understand how collateral or financial agreements work

it's not that I'm not bullish on LINK, you just don't get it