Chainlink Token

What is the token actually used for?

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link.smartcontract.com/whitepaper
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>Crypto has uses

It's an ERC20 token.

Nothing, we're all stupid and wasted our money. Move along

Look at ETH.
What makes it worth the $300 it is today?
Smart contracts
They are revolutionary. Don't know why? Google it. You will find all sorts of uses for them, from Finance, Insurance companies, Airlines, you name it. There is a problem however, which is probably slowing down ETH's growth. Right now, smart contracts on the Ethereum network are limited; it's confined within the blockchain and with data on the blockchain.
Chainlink changes that.
All of those potential uses for Smart Contracts - that's all now a very legitimate possibility now. In the simplest terms, Chainlink allows for extenal data to inform smart contracts. When you consider the fact that it's decentralised, it gets a whole lot better.
People that keep saying things like "why would banks use chainlink when they can just make their own version" clearly don't understand the fundamentals of this project. Chainlink's goal is not to "be used" like (e.g.) Ripple hopes to achieve.
Chainlink is merely the bridge that enables data which is outside of the Ethereum 'universe', to communicate with it, and thus execute various actions. Thus, it's not unlikely that adopters will use their own private blockchain (biggest reason would be to avoid the market fluctuations in it's value). But - what will they use to get their data, onto the blockchain - whether it be their own token, eth, etc... Chainlink.

Cause you know there are actually blockchain oracles without tokens on the market right? But if this token has some special usecase or utility then it could be worth investing. But it seems it doesn't really do anything.. does it provide revenue cuts? Does it provide equity in the company? I don't really think so, so is it just a pump&dump coin?

1. Eth and smartcontracts. We all know smartcontracts are revolutoinary, but their use cases are limited. Smartcontracts are awesome, but they are confined within the blockchain and data on the blockchain. In otherwords, right now smartcontracts are "you send 1 eth and I'll send back 1000 McTokens", and this contract is verifiable/trustless/amazing but its stuck within the universe of Ethereum and the data Ethereum understands

2. It is possible to use extenal data to inform these contracts, but right now that process is centralized. This is a problem. Lets say the extenal data is a transaction of Dollars for ETH. So you send 300$ to bank account X, and then I send one Eth to your address. Right now you either do that through a third party (CoinBase), OTC (LocalBitcoins) or whatever else centrlized system you want to use.

Knocking out that centralization, where you have to trust someone, is THE key to SmartContracts having a real world use case. But how do you get that information -- the fact that the $300 has been sent -- onto the blockchain using data that the smartcontract understands?

Ordering McDonalds apparently.

3. Oracles. Right now the answer is "hey we can hire Oracle X to do the translation to represent this bank dollar transaction on the blockchain." The "oracle problem" with this is that you are 100% TRUSTING that oracle to act prudently. That they don't tamper with the data. So we can kill coinbase but now we have to trust the oracle instead of coinbase .This is a HUGE problem for Banks who want to get into blockchain but have to trust a centralized oracle to translate data. This Oracle can be hacked, falsified, defrauded, really all the problems that come with centralization.
4. ChainLink - this service DECENTRALIZES that translation process of the Oracle. Now, the translation is trustless, and you have a trustless data feed that informs the trustless smart contract.

Multibillion dollar institutions can rely on distributed blockchain technology and know the data that informs their smart contracts is tamperproof.

Okay but you basically just explained the value of the company and its product? But how does the token fit into this perspective? Ethereum I get its value, it might be overvalued but I get what it does. I don't really get what Chainlink token exactly does.

>If it isn't a security it has zero value
>The eternal boomer

How do you think the smart contracts for cars, electricity , weather and so get their info about things?

Oracles brother

I might be taking it wrong but I think you're explaining the value of the company in terms of its software or w/e it does. Not the token?

Not what I'm saying, see Ether gets its value because they drawed in the market and you need Ether to interract. Is chainlinktoken necessary in the oracle solutioN?

It's payment for running nodes. If you want data you pay node operators with it.

if it's so useful why is the price so low right now (serious question, not making fun of people who hodl link)?

It's the first and only decentralized oracle attempted that uses node operators and trusted hardware. High end use cases like bank remittances don't want to touch centralised oracles (there are many of these already - oracalize, zap, Mobius)

"The ChainLink network utilizes the LINK token** to pay ChainLink Node operators for the retrieval of data from off-chain data feeds, formatting of data into blockchain readable formats, off-chain computation, and uptime guarantees they provide as op- erators. 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. The LINK to- ken is an ERC20 token, with the additional ERC223 “transfer and call” functionality of transfer(address,uint256,bytes), allowing tokens to be received and processed by contracts within a single transaction."

From the Chain Link whitepaper page 21.
link.smartcontract.com/whitepaper

It just came out like a month ago. Also fork killed all the alts, especially new ones.

because SIBOS pump

Combination of these two:
It was pumped super high because of SIBOs coming up, then dumped hard after the conference. Then bitcoin pumped and made most alts tank.

Market price is irrational and related to market manipulation and other factors. If you want a good indicator look at other high value cryptos in their infancy, you will see similar volatility. Remember, ChainLink has almost a full working product but the company is still in its early stages.

Also the forks and a "sell the news" dump that happened earlier.

but still have been around for 3 years and is no stupid "blockchain for dogs" shit

it's similar to Ethereum, a transaction fee. It's a transaction fee to buy secure data (using trusted hardware and node operators) for smart contracts.

Ay lmao. Yeah this is an actual product with a valuable industry use case.

Alright thanks, that creates a supply demand scenario when companies want to use this service. Took quite some comments to get to this.

Tokens are paid to node operators in the network (like gas paid to eth miners), and there is a staking system with tokens that affects priorities of nodes.

I just went 50% into the meme guys. Am I going to make money?

Because it's not quite in actual use yet. It only came onto the markets a little over a month ago.

It is used to connect toilets to the blockchain