[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 35 KB, 278x276, iu.png [View same] [iqdb] [saucenao] [google]
20407764 No.20407764 [Reply] [Original]

>muh token not needed


Actually token very much needed. Here's why, an example that most people on /biz/ will relate to.

Suppose you've got a million dollars of crypto lying around and you want to get a mortgage. You could go to the bank, send them loads of statements, wait for approval etc., basically cuck to the bank. Or you could use defi and post up some of your crypto as collateral.

So you post $500k in crypto as collateral and borrow $200k USDT from Aave. No approval required, its in your crypto wallet immediately, and the next day you have $200k in your account. Mortgage secured.

Now the smart contract you've entered into will need a reliable data feed of the cryptocurrency you've entered. Bear in mind one single incorrect input into the contract could liquidate your cryptocurrency holdings, causing you to lose $300k. So right away, for such high value contracts we can immediately throw away any centralised oracle. Out of the question. If you trust $500k of your money with a centralised oracle for several years you're just asking to lose your money.

Now, suppose we have a decentralised oracle like Chainlink. There's probably going to be 20+ nodes providing price data for your cryptocurrency which is fed into the smart contract which will determine if you get liquidated or not. If one node provides incorrect data you'll be fine. Normally there will be zero issues. However what happens when market volatility takes off and things get difficult?

What if a few of the nodes decide "Fuck it, we can't do this, let's turn off for a bit"
What if some exchange gets overloaded and can no longer provide accurate data?
What if the nodes get overloaded?

>> No.20407790

>>20407764
Suddenly there's a very real risk to your smart contract. Maybe its only 5, 2, 1% or less. But a 1% risk that you lose $300k is unacceptable.

This is why you need a service agreement and staking, which chainlink will have in the next couple of months.

Nodes will be punished if they provide incorrect data. Not only that, they will be punished if they don't provide data frequently enough, as defined in the agreement with the smart contract. They will post a chainlink token stake, and will forfeit if they fail the service agreement.

Now suddenly the nodes can't just bow out if things get rough. They will need to make sure they have data from several exchanges and that they will continue to provide correct data, even in times of stress.


The above might not be important now when DeFi is mostly muh $5k yield farming bot, but when people start using real, valuable smart contracts it will be very necessary. In fact, staking will probably encourage more people to start using these products in larger value contracts.

>b-but we could just use ETH instead of LINK

No, you couldn't. Why? Because the chainlink team said so, first of all. Secondly there's the usual, a 51% attack is not profitable if you have to buy all the chainlink which then becomes worthless when you attack chainlink.

>> No.20407800

Kid, you're audience is on Reddit. Most of /biz/ did all the research back in 2017-2018. We know what are the fundamentals and it is just a waiting game.

>> No.20407833

>>20407800
I'll wait until $50 to shill to reddit

>> No.20407853

token is for reward. Only retards will believe the fud

>> No.20407863

>>20407853
no, token is for staking first and foremost.

>> No.20407903

I wish defi was this easy, get a morgage yeah sure, but pay another 30% income tax on that morgage..
Not ideal

>> No.20407913

>>20407764
>>20407790
Based

>>20407800
Also this.

>> No.20407944

>>20407903
>Paying tax on a loan

ohh say can you see

>> No.20408053

>>20407764
Almost 70% of LINK supply is at the hands of Sergay. All tokenomics, all the network survival, at the hand of one man. Truly trustless and decentralised.

>> No.20408072

>>20408053
>the network survival depends on the guy who invented the network

whoa

>> No.20408073

Chainlink would NOT work without the LINK token. It is CRUCIAL.

>> No.20408077

The chainlink oracles are retarded. If you have a couple million bucks you can run one and liquidate people art will with bad data. There's actually no consequence and no way for the network to know what's going on.

Sergey is running the biggest scam in crypto. Craig Wright has been replaced.

>> No.20408096

>>20407833
Why not wait for 1k instead?
I don't wish to see more people from that place here.
The nulinkers are already making it hard to have a discussion.

>> No.20408127

>>20407944
I’m not in America but i think in most countries this will Fall under crypto Trading or something

>> No.20408146

>tfw your collateral can suddenly swing +25% or -25% at a whim

Sound shit.

Link should be pegged to the USD, and a smart contract pays out in fiat

>> No.20408282
File: 1.69 MB, 826x1238, Screen Shot 2020-07-16 at 3.17.41 AM.png [View same] [iqdb] [saucenao] [google]
20408282

dumped my bag
have fun not riding the rlc wave

>> No.20408302

>>20407764
Honesty thanks!
I heard about link since 2017 but never dig into it cause everything got shilled and u can't research everything (wwhyy? laziness NGL)
And yes I do spend most of my time on reddit :3
Still not buying btw

>> No.20408304

>>20408146

It won’t swing violently at all once we reach a certain point, that’s the entire point of the network.

LINK’s valuation is going to explode and stay there, as required by the network to operate.

>> No.20408346

>>20407764

Go to reddit newfag. Nobody wants or needs to here this for the 1000000th time. You sound like you just had a newfag epiphany about LINK. Sadly ur too late and its already over 1$

>> No.20408370
File: 1.39 MB, 780x980, Screen Shot 2020-07-15 at 5.21.39 PM.png [View same] [iqdb] [saucenao] [google]
20408370

>>20408304
the big thing i dont understand bout ne
this shit

how come i need a mortgage after we sold at the top?

>> No.20408403

why can't the nodes be paid in eth, dai or any form of stablecoin?

>> No.20408440

>>20408304
They can use link nodes for price insurance contracts too!
Or reproduce something similar to puts and calls with smart contracts.

>> No.20408450

>>20408077
>If you have a couple million bucks you can run one and liquidate people art will with bad data
lmao no you can't