9 months ago
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— 07/13/2020 @everyone I'm going to explain why chainlink is so important. In traditional finance buyers and sellers work through a trusted third party escrow to make sales in almost every important transaction. Let's suppose a car is being sold by party a to party b. To ensure safety and integrity both parties put up their side of the deal and the escrow agent secures both the car and funds, verifies everything is as was agreed upon, and then completes the transfer for the parties. The agent takes a 5% cut paid by either or both parties for this duty. Using smart contracts we could do the same thing. Party a puts up the title, party b puts up the funds. The smart contract locks the assets until it knows appropriate assets have been put up for the deal. when it is confirmed that everything is good, the assets are automatically swapped. Neat. But wait, how does the contract know the car and appropriate value have been put into escrow and to execute the contract? It needs a data oracle to supply that data. So you go to a trusted data oracle who takes a 5% cut and authorizes the smart contract to execute. So why did we even do this smart contract? Why not just use the traditional escrow agent since there was no benefit? That's why we need TRUSTLESS decentralized oracles that chainlink makes possible. Chainlink allows decentralized oracles to supply data to smart contracts. Neither party knows this oracle and the Oracle doesnt take a 5% cut, they take a transaction fee so small you wouldnt notice. Like fractions of pennies. The oracle is required to put up link in value to the car as collateral for processing the contract in case of screwing it up. Forcing them to be impartial and truthful. What all of this means is that fir a smart contract economy to work, you need trust less decentralized oracles running on every financial transaction everywhere and running on chainlink. Chainlink has a hard capped supply of 1bn tokens and comes with a massive suite of plug and play data api for web3 adoption by enterprise grade oracle solutions. 350m tokens are in circulation with 650m in reserve for the big boys. For an oracle to process a transaction valued at $1m they must put up $1m in collateral in LINK tokens (142k tokens). Meaning processing billions in defi transactions equires a LOT of link tied up into oracle staking This gives link tremendous price pressure upward. They're partnered with massive names like SWIFT and google cloud to name just a few. I'm not meming when I say link will be $1000. :pumpgeg: