@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
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 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.