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[Anonymous No.7904392]

Essentially, Smart Contracts are flawed because they, by their very nature, can't interact with data outside the blockchain. Oracles are the bridge which allow that to happen, but current oracles are centralized and could possibly manipulate the data they are passing for their own benefit, which causes big companies wanting to implement smart contracts to get cold feet.
Chainlink is a decentralized oracle network, which will allow the oracles on the network to act in a similar manner to how we see bitcoin miners interact with the bitcoin blockchain --- they don't care about what they're processing, they just process it. This allows the trustless and tamperless translation of the data from the source to the smart contract, which opens up a whole world of possibilities. I wrote a couple examples to help open your mind to it:
Securities smart contracts such as bonds . . . You have a Bond which you have a smart contract for which is fed market data through an oracle, calculates the effective interest rate and payment based on the terms of your bond, and processes your dividends through a payment network oracle (SWIFT Payment network)
Insurance smart contracts, which uses data from IoT devices in your home to support claims for insurable events, such as your fire alarm or home security system automatically beginning a claim with the company providing your personal property insurance when one of those events occur.

[Anonymous No.7904416]

>>7904392
I want to share with you a very interesting article on stablecoins and I encourage you to read it on it's entirety:

>https://multicoin.capital/2018/01/17/an-overview-of-stablecoins/

In our ideal world, we would have some sort of decentralized tether-like coin that function and operated through smart contracts.

Enter the stablecoin movement in crypto.

>What is a stablecoin?

It boils down to a cryptocurrency that attempts to retain a constant value (tether being the best example) for either wealth storage during volatile times or in order to be traded against more investments such as crypto,stocks, and other financial vehicles.

>How can a decentralized stablecoin ever be created?

It boils down to having the stablecoin be either collateralized by a crypto (such as Eth, BTC, Bitshares), or likewise, creating algorithmic-powered DAO that can increase or reduce the supply of said coin (using bonds and interest rates, similar to the fed) by having the right data.

>How does this relate to Chainlink?

While I encourage you to read the article here is the relevant bits from the article:

>All stablecoins must address the oracle problem.
>If stablecoins are pegged to the value of some external asset like the US dollar, the system needs some way to get data about the exchange rate between the stablecoin and the asset that it is pegged to.
>Using a trusted data source (aka a trusted oracle) recentralizes the power to the data provider (meaning a decentralized oracle is the only secure way of achieving a decentralized stablecoin)
>Having the users that stake the coin provide data (no efficient way of doing this in an efficient way for the stakers, at least not automatically and accurate at the same time.)

That's right. Chainlink is in the market to compete with Tether and fiat currencies. Billion and Trillion dollar competitors.

Q1 is almost up guys, and Chainlink's mainnet is going to go live in 1 or two months. Don't miss this for the love of god.

[Anonymous No.7904447]

>>7904416

Listen very carefully to what I'm about to say.

Ambrosos wants to represent external data (food) on the blockchain.

Walton wants to represent external data (RFID tags) on the blockchain.

Ripple wants to represent external data (financial transactions) on the blockchain.

These use cases are ENTIRELY contained within ChainLink.

ChainLink is the skeleton key that makes all these proects obsolete. It gives every company the building blocks to use oracles that represent ANY data, not just single use cases like food/RFID/financial transactions, however they want.

Ethereum is a blockchain with advanced scripting language whichallows running of decentralized applications (dapps) and Smart contracts. What are smart contracts? It is a digital contract planted in the Ethereum blockchain. It is a tamper-proof commitment of all participants of the contract. It is used to exchange money, property, shares etc, without a middleman. Ethereum's creator's description of smart contract is to compare the technology to a vending machine. Ordinarily, you would go to a lawyer or a notary, pay them, and wait while you get the document. With smart contracts, you simply drop a bitcoin into the vending machine (i.e. ledger), and your escrow, driver’s license, or whatever drops into your account. More so, smart contracts not only define the rules and penalties around an agreement in the same way that a traditional contract does, but also automatically enforce those obligations.