/biz/ - Business & Finance

[Anonymous No.12777873]

Sergey asked good question yesterday. What are people willing to pay for decentralization?

[Anonymous No.12777875]

$1000

[Anonymous No.12777882]

Smart contracts are essentially automation of economic processes. It makes sense that the world is moving towards automation because it cuts costs substantially and ultimately can make life a lot easier by cutting out jobs that no one wants to do. However, automation requires higher security guarantees than today's standards because data, not human intervention, automatically triggers actual exchanges of value and real world actions. The damage that can be caused from automatically triggered actions that are faulty is extreme. Imagine losing tons of money or exposing key documents or causing machines to perform faulty actions because it got fed bad data or the centralized system triggering them went offline or was hacked. It could be catastrophic, such as a company going bankrupt, accidentally releasing business secrets, or machines going off track and killing people by accident. As a result, having high security standards for data going into an out of smart contracts is paramount. I don't think the market realizes just how importance it is right now because automation is still in its infant stages, but i believe it will soon enough. The stakes are simply too high to risk faulty data triggers. The above reasons is why I am such a proponent of Chainlink. It is the crucial system that gets data into and out of smart contracts. It is that system that directly triggers automation of real world actions. And its the only system with the forward thinking vision of giving developers all the tools needed to maximize the obvious benefits of automation while mitigating the huge risks associated with it. I am betting heavy that people will pay a premium for security but still a save a ton more money than today by using smart contracts.