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20711302 No.20711302 [Reply] [Original]

Brainlet question here. How will companies get rewarded by using Chainlink? Will it be through staking or more link tokens?

>pls no bully

>> No.20711424

>>20711302
Through investor's money, you're getting gypped

>> No.20711466

>>20711302
who could bully should a beautiful little face.

here, have a (you) my wittle fren.

staking link = locking links as collateral in case of faulty data.

so staking link for companies isnt worth it. but it's worth it for me and you, because we will be kind of liquidity providers for node operators.

>> No.20711541
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20711541

companies or whoever will set up a node. these nodes feed data into smart contracts. the reward they get for this is link tokens.
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. 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 link

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. link 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 link network is genius like that. It is fundamentally backed by the truth.

There is infinite amount of collateral available because the token price can rise to meet it (Note: the token is divisible by 18 decimal places).

Now you have to research how large ALL these markets are. derivatives, insurance etc... hint: Trillions.

>> No.20711692

>>20711466
>>20711541
AH I understand now, thanks. One more question though, say I put up 2k Links as collateral for a contract and the node provides bad data. Will I lose the 2k links?