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16905113 No.16905113 [Reply] [Original]

serious question
wouldn't it be better, more efficient, faster and sooner trustet if chainlink would just use ETH as collateral for running a node?

>> No.16905131

>>16905113
its blockchain agnostic

LINK is coming to Polkadot, Hyperledger and R3 Corda this year, using eth doesn't make sense.

>> No.16905132

>>16905113
>Why isn’t there a hardcover version of Wikipedia

>> No.16905165

>>16905131
>blockchain agnostic
thx that was the buzzword I was looking for

>> No.16905172

>>16905113
The first and most obvious justification is that link invented a new token standard for itself (ERC 667) to build a new "transfer and call" functionaility that allows it more efficient operation. Second, establishing a unique token for the ecosystem helps with reducing price exposure to outside price fluctuation (you wouldnt want the value collateralized by link to swing wildly just because the price of eth decides to pump/dump). It also allows for more carefully controlled distribution of the token for bootstrapping the network. Also will be even more important once link moves into the next phase where it's implemented across multiple different smart contract platforms (you can look at the Fantom bridge as an early example of how this will probably work).

>> No.16905224

>>16905113
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. at the end of the day 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 Chainlink

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. Chainlink 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 Chainlink network is genius like that.

There is infinite amount of collateral available because the token price can rise to meet it.

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

Is 1000$ really possibly in say the next 3-4-5 years?

>> No.16905235

>>16905172
>across multiple different smart contract platforms
just like usdt? but with fantom tech?

why do we never get spoon fed the deep digs?

>> No.16905281

>>16905224
thx fren, this was helpful info

>There is infinite amount of collateral available because the token price can rise to meet it.
you sound like a poet

>> No.16905351

>>16905113
Eth cant scale, and Link is a ERC20 token.

>> No.16905399

>>16905224
So what happens if you put a 10mil contract on link, which is at that moment backed by 10 mil, but the link price drops sharply and its suddenly only backed by 1mil? Clearly thats a problem?

>> No.16905420

>>16905113
When staking is released for both ETH and LINK, people would move their ETH between the two and cause the interest payouts to fluctuate.

>> No.16905441

>>16905399
It is a problem, which is why overcollateralization is likely to be a thing (even more bullish), and why it's good link is utilizing a defense in depth approach to security where the failure of any one security model (collateralization, reputation, decentralization, SGX, etc.) is unlikely to cause issues for the consuming smart contract.

>> No.16905778

>>16905131
If it were blockchain agnostic you wouldn't need to stake a fucking ERC20 shitcoin, you could stake ETH, ATOM, DOT etc

>> No.16905813

Better question: Why doesn't the ChainLink team just keep all the link to themselves and operate like Visa or Mastercard?

>> No.16906114

>>16905778
Are you retarded?

>> No.16906196

>>16906114
Nice rebuttal linkoid

>> No.16906249

>>16905172
Wow someone who actually knows his shit. Why you still hanging on biz in 2020? This place is strictly for broke ass brainlets.

>> No.16906276

>>16905813
You don’t get it and never will. Move along retard.