Chainlink Inflation

Town Crier Intel SGX tamper-proof hardware

...

...

ok great. with town crier I can trust a node with 3 LINK??

How does it make sure the oracle isn't tampered with?

>chink whale meme again
Look at how many "whales" are out there. Even so, either they'll have a single 10 million LINK node or many smaller nodes. It doesn't matter when there's thousands of nodes, they'll still be a tiny percentage of the network.
And again, if the data is legit, who cares if the node is in China, Europe or Turkmenistan. And stacking LINK is only one of a couple measures of reputation.
Anyway, I'm not an expert of the matter but I'm pretty sure the devs know what they're doing if they're targeting banking integration.

youtube.com/watch?v=V5pJL6uJuI4

yes so now theres no incentive to hoard link

You know you are playing with fire, don't you? Sergey is Russian and therefor Russian law applies on your post.
This is purely REPROACH and DEFAMATION you are putting on him. You know that's a 5-year minimum jailtime in Russia? Even in Europe and America this will get you JAILED.

I am currently connecting the Links from your IPaddress so i can track you down. The Mossad (Yes, that's the Russian police you dumb fuck) will be informed by some very smart contracts i'll be sending them.
You should'nt provoked me AND Sergey in the first place, you will be an example of what my hidden oracles can do to neets like you.

Watch and learn, you pathetic roach. Also let this be a lesson for all of you. I'll be watching.

R.

They will start out small growing in the process they won't just dump 10MM on one node. They will have enough to out bid smaller guys like us to the point we don't exist because there is no incentive to and they get bigger

If you're running it through the Intel SGX, that's true, but Ari says in the video that you essentially end up having to trust the maker of the hardware and that vulnerabilities do exist there as well. It re-centralizes the system somewhat if you run it through the SGX.

You're way overthinking this while the network is not even out. This would require the whales to literally buy out like 30% of the market and run tens of thousands of nodes to achieve some kind of a monopoly.
I for one welcome them to push the price of ChainLink into a multibillion marketcap.
There's only a couple of whales with a few million LINK, as it gets more expensive it'll be even harder to accumulate.
And I'm pretty sure you cannot be "outbid". Sure you'll be prioritized when holding tons of LINK but the data is passed through many nodes before it's fed into the smart contract.

Ok

ChainLink AGGREGATES oracle results and all nodes that make up this aggregation get rewarded. For whales to control the market they would need to spread their bags over many nodes. This is called a sybil attack which is noted in the whitepaper, the network will try to mitigate and punish such attacks as it weakens the decentralized nature of the network.

In addition, the smart contracts that query the nodes determine the relationship through SLA contracts. As long as you meet the requirements in the SLA you are eligible to bid on and serve that contract's requests. Contracts are discouraged from defining narrow SLAs such that only whale nodes with massive link bags are eligible because that would put themselves at a higher risk of receiving potentially tampered data.

If you want to query ChainLink oracles, you'll need to pay the nodes in LINK. Your own LINK, at a rate they decide. The 350m initial incentive tokens is not a replacement for this system, it's to kickstart it.

That's not exactly how it works, at least not as the whitepaper describes it. ChainLink nodes offer penalty payments when bidding on your query, which is lost if they give you invalid or inaccurate data. You trust a node more if it more strongly guarantees its reliability by putting up more. The actual use of the token is pretty clear:
1. You want trustless data for your smart contract, so you choose to query ChainLink.
2. You request # ChainLink nodes using a reputation contract that specifies they must have at least # previous transactions, #% accuracy, and demand a # penalty payment from each as a guarantee.
3. All the ChainLink nodes which meet your qualifications now bid to be part of the # you requested. You will select the # that ask for the lowest amount of LINK as a transaction fee.
4. Your selected nodes provide their data and it is aggregated by the aggregating contract you selected. You get your data, the nodes get their payments, and the penalty payments to all nodes whose data did not disagree with the consensus.
5. The honest and correct nodes now have more LINK, which they can keep for future penalty payments or sell to you on exchanges for your future ChainLink transactions.

If you aren't querying a lot of nodes, just use Oracalize or some shit. If you're using ChainLink, you're going to be aggregating a lot of nodes. That's where the incentive is for small node operators.

I'm not an expert on SGX and this is probably oversimplifying it but my understanding is that the data is cryptographically signed in the enclave, so any attempts to tamper with it would invalidate that signature. You no longer have to trust node operators, but you DO have to trust that Intel designed and manufactured the chip properly.

>You guys realize node ops will be paid with the 350 million LINK

Yeah we know. Link is gonna be worth like .25 cents five years from now

>Pajeet and all his toilet friends in Kolkata run Chainlink nodes
>Pajeet does a smart contract with Axa for an insurance on a flight delay
>street shitters say to the oracle his flight was indeed late
>Pajeet buys more Links with his free money and give to his brothers
>their nodes get even more priority
>repeat
>India becomes a superpower in 2020

Kek

Yup

If you read the whitepaper you will see that the node ops will receive tokens from the allocation that is reserved for node ops. They’re not buying back the tokens from the circulating supply.

I'm just over thinking things, I guess only time will tell

Good post. so nodes wouldnt hoard link. just have enough to make them trustworthy

which causes inflation and less value for Link holders cuz no one will buy them. fuck

This coin doesn't solve the biggest problem, which oracles to trust. Sergey has no answer to this on slack either. If "bigger" (holding more link) oracles get prioritized (like in PoS) this project is doomed to fail.

Yeah I want to get an official word from the team on this. Even if they do hand out free LINK to node operators it will be done over the course of many years but still that's a shitty practice in my opinion.
Whatever they do, I hope they won't pull a Tierion.

It's literally in the whitepaper you fucking brainlet.
And some of the parts are here 5 posts above yours >Sergey has no answer to this on slack either.
Confirmed for never been in slack

> If "bigger" (holding more link) oracles get prioritized (like in PoS) this project is doomed to fail.
Confirmed for never even trying to read the whitepaper.

I haven’t seen this copypasta before

So then, what's the incentive to buy the tokens?

>already priced in
Seriously, however, such an exploit was already foreseen by the developer(s) and eliminated (it's all there in the whitepaper).

To support the project

There is no incentive

Guise will we ever see .30 again?

hahaha deluded LINKies btfo

tomorrow

Tokens are there for ChainLink users to pay the nodes for the data they're fetching.

>If you read the whitepaper you will see that the node ops will receive tokens from the allocation that is reserved for node ops.
You should really read the whitepaper before spouting bullshit, especially if you're going to prefix it with "read the whitepaper".

>In order for a smart contract on networks like Ethereum to use a ChainLink node, they will need to pay their chosen ChainLink Node Operator using LINK tokens, with prices being set by the node operator based on demand for the off-chain resource their ChainLink provides, and the supply of other similar resources.

to pay node ops. its still there but theres less incentive

So it sounds like Veeky Forums's projections of an astronomically high token price (like 50) are unfounded?

>So then, what's the incentive to buy the tokens?
As far as investment goes, the value of tokens is the value of the data provided to the ChainLink network. You're buying transaction fees. If smart contracts see widespread adoption and ChainLink becomes the definitive decentralized oracle they use, then LINK will be very valuable. If either of those don't happen then it will not.

As far as why you'd buy tokens for non-speculative reasons, you buy them because you need them to purchase data from the ChainLink network for your own smart contracts.

This, if there is incentive whales win.

Eth supports smart contacts just that as payment

>So it sounds like Veeky Forums's projections of an astronomically high token price (like 50) are unfounded?
Veeky Forums pulls numbers out of its ass. There's no valuation or calculation behind the $50 estimation, just "if it was $50 I'd be rich... so it will be $50." This applies to all crypto discussed here, but especially LINK which is discussed here the most.

The LINK token is used to pay node operators for data. The more data being provided through the ChainLink network (and, importantly, the more expensive this data is for oracles to obtain due to expensive calculations, subscriptions to APIs, or delicate equipment like sensors), the more valuable the LINK token becomes. This also depends on the supply. According to the ICO terms:
There are 350m tokens in circulation.
There are 350m tokens reserved to get the network started by incentivizing node operators.
There are 300m tokens held by SmartContracts.com (Sergey and co.) to use as they see fit.

When ChainLink is fully implemented years down the line, you can expect all of the 350m reserved and most of the 300m held to also be in circulation. If you're going for a long-term hodl then you should keep that in mind. $50 is an insane valuation in my opinion. But that's also because the world of smart contracts is a very small one right now. I'm sure many hope that ChainLink will be the catalyst that brings them to widespread mainstream adoption instead of just ICOs and shit they're mostly used for now. If that is the case then there's no telling what will happen in the future. ChainLink having a $50b market cap still sounds crazy to me, but $5b doesn't in that optimistic future. One thing's for sure, though: if you're investing in ChainLink, you probably want to invest in Ethereum too. Their fates are closely aligned right now.

Thank you, user. I appreciate your honest remarks.

>built in inflation

YOU IDIOT NEETS I TRUSTED YOU

This is not true at all.

Read the fucking whitepaper.
Or don't and stay the fuck away.

user, what about the demand?

Do you not think an increase in nodes and Chainlink usage will create more demand as well?

Do you even have two braincells to rub together?

Are you remembering to breathe right now?

These are important questions, and I want answers.

>when Veeky Forumstards realize that operating a node requires a data stream

Tell me Veeky Forums how many of you have useful data streams that people are willing to buy?

The whitepaper. Read it.

Or don't and stay away.

If Chainlink actually brings smart contracts into the mainstream, 50 is VERY conservative.

How many billions of $ would you say a trustless contracting solution is worth?
A system that will render commercial courts virtually useless and will decimate major companies' attorney and legal expert fees?
A system that is a low-threshold, plug&play add-on for banks, as well as a peer-to-peer way of making agreements between private persons without middlemen like notaries or attorneys?

Increased Chainlink usage will create more demand and adding 1/3 of the total circulating supply will dilute the value of the tokens with 1/3. That doesn't mean the price goes down. Am I wrong? I would like to have an answer

1) your post was misleading as fuck
2) perceived value is not a zero-sum game

What is Chainlink? Where do I buy it?

>ChainLink nodes offer penalty payments when bidding on your query, which is lost if they give you invalid or inaccurate data

right the nodes offer up Link as a bid, if someone offers 6 Link to my 5 Link with the same reputation as me, why would i get picked (the person who bid less link).

There isnt any, they just want to feel special and have their own token.

>when you realize that the whole point of ChainLink is DECENTRALIZED oracles and what you're describing would be a centralized system
I'll let you figure it out by yourself how we'll get that useful data

They won't just take the 350m tokens and distribute tens of thousand of dollars in a single moment to every single node on the network. They're not retarded.
The distribution of those tokens will probably take years.

1. the future
1. binance.com

finally someone who isnt retarded. CHAINLink does not solve the fucking oracle problem, it brings us right back to it.

It wasn't misleading haha. It's very simple. I'm invested in link too. One thing I'm worried is SWIFT having a partership with SmartContract might not mean they care about the token at all. They might use the chainlink network but ditch the token. Any insight on that anons?

Of course they won't, but no matter how they distribute in the end when it's all in circulation the price is 1/3 less than it would with circulation of 2/3, if in both given situations other factors stay the same.

Might as well rebrabd themselves to ChinkLink at this point

...

Just bought 1 LINK. See you guys in 20 years when its worth $1,000,000 per coin and I'm a millionaire.

No, the price is not 1/3 lower but the market cap is 1/3 higher.

Price is market cap divided with the amount of coins in circulation?

It's priced in guys ;)

No, the other way around, market cap is price x circulating supply.
It's like saying that the more Bitcoins are mined, the price should be lower.

yea, why only good things should be priced in?
the same goes for bad things

>Doesn't understand basic algebra

You don't have to be a data source to run a node. Many (I'd guess the vast majority - but this is a totally untapped market so who knows) smart contracts will want access to publicly available data that literally anyone with an internet connection can provide. You might even want to aggregate data from multiple sources to increase the accuracy of your own node, which will then be aggregated with other nodes through ChainLink.

Users have access to many metrics by which to decide how much they trust a node. They might value your past performance over your ability to put up big penalty payments. Or they might value you just NOT being part of some big entity hey don't trust or are already using as part of their query. The users can configure this however they like and even choose their own reputation and aggregating contracts for their SLA.

Fuck I realized I basically said the same thing.
I misread his post, thought he was wrong.
Anyway, my point stands, it doesn't decrease the price but increase the marketcap.

10x20=? 20/10=?
I'm not saying the price will go down when they distribute more tokens if that's what you mean

Yeah, my bad.

>my point stands, it doesn't decrease the price but increase the marketcap
if they suddenly distribute 1/3 supply the price will decrease

That's why it won't be suddenly.
I wrote that 2 times already, it will be distributed through a long period of time.

PLEASE TELL ME THIS SHIT IS GONNA DIP AGAIN I SOLD EVERYTHING AT 4K AND MY BUY ORDER IS AT 3.8K

Alright you're good! Let's hope link does well!

if link gets data providers and swift banks then this thing will hit $50

Without news, I'd expect it to. I think there's still plenty of time to accumulate lower if you're patient. No promises though.