/biz/ - Business & Finance

[Anonymous No.8077800]

One possible application that seems really cool is the ability to trade derivatives without needing an exchange.

For example, you could trade options via an ethereum smart contract. The smart contract would use chain link to retrieve market data. It could potentially use multiple sources for market data (that is, multiple chain link nodes) to ensure accuracy. Options would then settle based on the stock price at the time.

This is a procedure that normally requires a centralized exchange. Before smart contracts and ethereum, trading derivatives without an exchange and without counterparts risk was unheard of. Now it is very possible.

Billions of dollars worth of derivatives trade every year and it all depends on exchanges. Ethereum smart contracts + chain link could do it cheaper.


>but muh oraclize

Lol. Oraclize is already struggling. If they tried to take on something of this scale it would be a mess. Oraclize crashes for a few minutes? The whole market dependent on it comes to a crash.

Meanwhile if one link node that provides market data goes down, guess what? Just use another one.

[Anonymous No.8078184]

tell that to etherdelta

[Anonymous No.8078247]

[Anonymous No.8078253]

to be clear, etherdelta is decentralized and therefore should be up 100% of the time. Yet its been down for 2 weeks or more