/biz/ - Business & Finance

[Anonymous No.13230079]

Alright, I admit it. I have no idea what the fuck this token does. I only bought it because of the memes. Are you happy now? I have no idea what I’m even holding, the white paper makes no sense, this is all too technical for me even when someone tries to explain it

[Anonymous No.13230099]

ok, now this is epic.

[Anonymous No.13230102]

>>13230079
That's how it starts. Next thing you know is you'll be jacking off to twinks and uncovering the Bill Gates Foundation piece and Link together

[Anonymous No.13230105]

If it's too complicated I don't know how you ever figured out the way to purchase them in the first place

[Anonymous No.13230116]

>>13230105
I have a feeling you either don't actually fully understand chainlink or you have some kind of impairment that makes basic operation of websites a herculean task

[Anonymous No.13230554]

>>13230079
I downloaded the whitepaper, never bothered opening it.
30k Link and $136 in the bank

[Anonymous No.13230643]

>>13230554
based

[Anonymous No.13230672]

>>13230079
This is why I didn't stack it for more then a year. I was always tempted to cause of the memes. But then I did my own research and really tried to understand it and my jaw dropped.

[Anonymous No.13230681]

>>13230079
Is this bait or would you like a serious response? I can help guide you through it as I have some free time and don't mind helping someone out.

[Anonymous No.13230696]

i jsut invest in the meme's and poking fun at sergey. calling him a fatass and watching his miserable ass project fail.

and my money going down with it

[Anonymous No.13230712]

>>13230079
lol you read the whitepaper?

[Anonymous No.13230750]

To this day I still virtually have 0 grasp and understanding on crypto-currency, and no one has ever explained it to me in a satisfactory manner, much less even tried.

Then there's the practicality, is it practical at all for anything besides buying drugs and specualtion?

[Anonymous No.13230758]

>>13230079
watch this

https://youtu.be/XYiEPFRHV9A

[Anonymous No.13230767]

>>13230079
What is this coin? I come here all the time and I've never seen it before.

[Anonymous No.13230779]

>>13230681
I haven’t read the white paper. I think I mostly understand it but I think I’m really just understanding smartcontracts and how it’s hard to get data from other sources in a way that smartcontracts can trust them. Somehow that’s how chainlink comes in. And also the part I’m really lost in is what node operation is and how someone holding link could make passive income this way. I’m afraid to figure it out because I’m afraid to get tricked into something I don’t even understand and lose my pathetic little linklette stack.

[Anonymous No.13230924]

>>13230779
Just read the whitepaper.

[Anonymous No.13230929]

>>13230750
crytpocurrency exists on a data structure called a blockchain which exists on a vast decentralized network of bitcoin client nodes, because of the structure of the network and algorithms used to secure it, there is virtually no need for a trusted middle man to settle transactions and prevent fraudulent use of funds, this drastically reduces the cost of trust

>>13230779
> Somehow that’s how chainlink comes in
yes, chainlink provides secure data through decentralization of the oracles: many separate independent oracle nodes retrieve and parse the data that smart contracts need rather than a single oracle node which is a single point of failure and is likely to be proprietary (potentially not tamper proof); chainlink node operators get paid in LINK for fetching, parsing, and formatting data for use by smart contracts and they stake LINK which could be partially or completely collected as penalty payment in the event of providing incorrect or fraudulent data

[Anonymous No.13230997]

>>13230929
Thanks. I understand what decentralized oracles mean now. Though I’m still a bit sketchy on how they will do their job. How does a chainlink node do this parsing, fetching. I assume that’s the work the chainlink team is doing. But then what does a node operator do?

Also the paying and staking of Link will vary by job? I assume there would be different penalties for different magnitudes of errors or different payments for different magnitudes of information or maybe the value of that information. How are those amounts determined if the price of Link is always in flux?

[Anonymous No.13231015]

>>13230929


I just cant wrap my brain around trading tangible, physical money, for something intangible and virtually non-existant except in hearts and minds and ones and zeroes?

Maybe I'm just not bad ass enough, maybe I'm a brainlet, I don't know; but crypto is clownin' dawg

[Anonymous No.13231049]

>>13231015
physical money only has value in the hearts and minds of people who use it.

>>13230997
Node operators assume the risk and responsibility of operating a node. If they fail to deliver accurate data to a contract, they lose a deposit that they put up until the succesful delivery of data.

[Anonymous No.13231098]

>>13230779
1/2
Ok so lets take smart contracts and boil it down so its easy to digest.

A smart contract is a computer protocol that facilitates a trade between two parties. In a more simplistic way, you could simply define a smart contract as a programmable transaction that is deterministic (if X occurs then execute Y). hundreds of thousands of smart contracts are already being executed daily on Ethereum but they are limited to trading tokens because Ethereum smart contracts only have the knowledge of data that exists on Ethereum's network.

If you have a deterministic smart contract but you want the contract to facilitate a trade outside the realm of tokenization, for example; Party A promises to increase funding to Party B If Party B reaches X amount of profit in a quarterly period, then the smart contract would need outside data that is not native to Ethereum's network. In this example you would need data on Party B quarterly profits to trigger the contract.

Because both Party A and B set up a smart contract to facilitate the trade, both parties will want to ensure that the data being entered into the contract (also known as an "oracle") is not controlled by your counter party. Whoever controls the oracle in the contract can essentially determine how the contract will execute. So both parties will want a Third party to join the mix who is not involved with or colluding with either parties. This is Chainlink, a trusted third party to provide data into these contracts.

[Anonymous No.13231113]

>>13230779
>>13231098
2/2


So now you have a third party involved to trigger the contract, what incentive is there for the third party to stay honest? This is where the term "node operator" and "staking" comes into play. Someone who contributes to a decentralized network is refereed to as a node. For example, people who hash, or "mine", bitcoins are considered bitcoin nodes. For chainlink, a node operator would be a user who is providing data onto contracts.

Now Staking. This is where you precious link tokens come into play. Back to our first example, both Party A and Party B have set up a smart contract with a trusted third party to facilitate contract execution, there must be an incentive for the trusted third party to stay honest and provide legitimate data. As a Link Node operator, you will have to provide collateral to act as insurance in case the contract executes improperly due to faulty data. Anytime you accept a job as a chainlink oracle, Party A and Party B are going to want your capital on the line to keep you honest throughout the process. If there was no staking on the network, a node operator can simply sybil it with no repercussions.

as far as a node operator making money from this process, Party A and Party B agree to pay X amount of money to the third party should the contract execute properly. That money is distributed to you or distributed to a network of decentralized nodes depending on if the contract required 1,2,3,4,5 etc. amount of nodes, under the assumption that more nodes=more security=higher fees.

Hope you have a better understanding of it now.

[Anonymous No.13231126]

>>13230997
>How does a chainlink node do this parsing, fetching. I assume that’s the work the chainlink team is doing. But then what does a node operator do?
nodes install appropriate adaptors to access certain data feeds on the web, they accept contracts to get data from these feeds and format it to blockchain readable standards; all the nodes contracted for a particular service agreement aggregate their data from the various data feeds depending on the terms in the service agreement (the task specified by the smart contract that oracles need to complete); for example there are 10 data feeds that provide price data for some underlying asset of an smart options contract and the contract demands 100 randomly selected oracle nodes to service the request, they nodes may be required to average the price data and then attach a partial signature (basically a mathematical seal of approval) to their average, if the service agreement receives an average price that has a sufficiently high ("sufficiently high" is defined in the whitepaper) number of partial signatures then it accepts this price average and executes the terms of the smart contract accordingly

>Also the paying and staking of Link will vary by job? I assume there would be different penalties for different magnitudes of errors or different payments for different magnitudes of information or maybe the value of that information.
these questions will all be decided by the market once volume ramps up and contracts start being serviced; of course it is natural for users of the chainlink network to pay more for more oracle nodes, higher reputation nodes, higher contract value, etc; penalty terms will be specified by the smart contract and will very likely be commensurate with the contract value

>volatility of LINK
that will probably be something like a MakerDAO CDP (collateralized debt position): node operators will be required by the contract to stake significantly higher value of LINK than the contract's

[Anonymous No.13231135]

>>13230997
>what does a node operator do?
Operators need access to an API they use to process the data feed. If it’s a public API it’s all good, otherwise you need credentials for the access. An operator sets their fee for the data and accepts requests, and is responsible for keeping their node maintained and online.

>paying and staking amounts vary by job
Yes, open market principles

>penalty payments
Penalty deposit is dictated by the consuming contract and active for the duration of the contract. The penalty system is not determined. All we know is if your node sends data deemed as false by the aggregation, or if your node stops processing mid-job, you will be subject to some penalty.

>how are amounts determined if LINK is volatile
There will be LINK-USD and other fiat price feeds so that payments can automatically be processed in terms of fiat value (each call costs $.01 to the consumer, although the quantity of link fluctuates). I doubt this will come into play with penalties, with penalty amounts denominated in a predetermined value in LINK, but I guess it would be just as well to demonominate in USD.

[Anonymous No.13231214]

>>13231015
>I just cant wrap my brain around trading tangible, physical money, for something intangible and virtually non-existant except in hearts and minds and ones and zeroes?

Can you wrap your head around trading tangible, physical reading material like a newspaper for something intangible and virtually non existent like the information I am sharing with you now being sent in the Ether?

Welcome to the dawn of a new age. Trading tangible money for intangible data. Much like the start of the internet where information was being communicated in a different medium, you are now graced with experiencing the same epochal shift with financial trade and digital agreements, forever altering the way we communicate and interact with each other. Either hop on or be left behind, old man.

[Anonymous No.13231217]

>>13231015
Technology isn’t going anywhere friend. You can buy a smart phone for like 50 bucks now.

[Anonymous No.13231654]

Please post a real life example of an entire smart contract being executed on the chainlink network.

[Anonymous No.13231694]

The white paper was never designed to be read...just to put under a cup of coffee used as a coaster

[Anonymous No.13231812]

>>13231098
>>13231113
god we are going to be so fucking rich in 5 years. this is literally the key to blockchain adoption and it gets me rock hard every time I read a summary like that. I honestly just punched my mom in the face 7 times. I can’t believe we know about this project so early, I am going to be worth tens of millions of dollars one day. This is our one chance to get filthy rich, this sort of opportunity comes around maybe once in a generation DO NOT FUCK IT UP FAGGOT

[Anonymous No.13232010]

>>13230116
I have a feeling you're a complete dummy and you lack basic understanding of sarcasm

[Anonymous No.13232018]

>>13230079
It's just a meme shitcoin that /biz/ shills day and night. You shouldn't have given in OP

[Anonymous No.13232280]

>>13231694

this

[Anonymous No.13232281]

>>13231654
Here. You're welcome - slides 9-12 for non-technical explanation :)
https://docs.google.com/presentation/d/12BzFXmRh2e7_Ca3s362deaeIc5Z1IRjbFz3CGdDk_zI/view
https://docs.chain.link/docs/workshop