Chainlink's most prominent community members, ChainLinkGod and FishyCatfish, discuss the bull case for $LINK. They cover topics such as the ultimate vision of blockchains, the role of Chainlink in connecting blockchains with external data, the genesis of Chainlink, the benefits of being a validator, and the potential impact of market forces and tokenization of real-world assets.
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Quick takeaways
Chainlink's decentralized oracle network solves the blockchain oracle problem by providing secure inputs and outputs for smart contracts.
Chainlink is building a decentralized computing marketplace where users and node operators can interact, creating a market equilibrium.
Chainlink's decentralized oracle networks offer scalability and reliability without congestion spikes experienced by blockchain networks.
Chainlink is positioned to capitalize on the tokenization of real-world assets, revolutionizing asset management and increasing liquidity in the crypto industry.
Deep dives
The dual nature of on-chain finance
The future of on-chain finance will be a hybrid model combining on-chain executing code with off-chain collateralized assets and tokenized bonds. Ethereum is positioned as a neutral meeting ground for trust between various counter parties. This hybrid model expands the potential of the entire industry and aims to unlock trillions of dollars of real-world assets to be brought onto the blockchain.
The role of Chainlink and the link token
Chainlink is a decentralized oracle network that solves the blockchain oracle problem by providing secure, decentralized inputs and outputs for smart contracts. The link token is the native currency of Chainlink and serves as the standard form of payment for all Chainlink services. It is used to pay network service providers as well as stake for enhanced security. As more applications use Chainlink services, the demand for link tokens increases, driving up the token's value and attracting more stakers to secure the network.
Determining fees and market rate for Chainlink services
Chainlink is building a decentralized computing marketplace where users and node operators can interact. Node operators list their services and pricing, and users select the services they need, creating a market equilibrium between the two parties. Currently, Chainlink Labs helps bootstrap the network by providing pre-built Oracle networks with predefined pricing. However, the long-term vision is for users and node operators to configure their own services and pricing, creating an efficient market that rewards node operators based on the value they provide.
Benefits of Chainlink's scalable and reliable network
Chainlink's decentralized oracle networks offer scalability and reliability without the congestion spikes experienced by blockchain networks. Unlike blockchains, oracle networks are horizontally scalable and stateless, allowing them to handle increased demand without increasing fees. The network's flexible, chain-agnostic design enables applications to connect to multiple data sources and chain environments, ensuring interoperability and creating a global financial fabric. As the network expands and more services and users join, the cost per user can even decrease, making Chainlink a powerful tool for creating a sustainable, decentralized financial ecosystem.
Arbitrum Orbit: Building Your Own Layer Three with Arbitrum Secure Scaling Technology
Arbitrum Orbit offers developers, enterprises, and users access to interoperable and customizable permissions with dedicated throughput. Leveraging the security and decentralization of Ethereum, Arbitrum Orbit allows for faster transaction speeds and significantly lower gas fees. Developers can build their own layer three using Arbitrum secure scaling technology, taking projects to new heights.
Decentralized Oracles and Market Discovery in the Chainlink Ecosystem
Chainlink's decentralized oracles enable applications to access reliable and secure off-chain data. For example, in a DeFi application, multiple oracles provide data, creating market discovery as buyers select the cheapest oracles that meet their requirements. This market-based approach also considers other factors such as past performance and economic stake, ensuring competitive and justifiable prices for oracle services.
Connecting Public and Private Blockchains with Chainlink CCIP
Chainlink's CCIP enables seamless cross-chain interoperability, allowing institutions to connect their private chains with the broader blockchain ecosystem. CCIP facilitates the movement and updating of tokenized real-world assets between different environments, enhancing transparency, programmability, and efficiency. The collaboration between Chainlink, Swift, and major financial institutions further expands the capabilities of CCIP, bridging public and private blockchains at scale.
Tokenization of Real-World Assets: Unlocking Trillions of Dollars in Value
The tokenization of real-world assets (RWAs) is considered a catalyst for the growth of the crypto industry, revolutionizing asset management, increasing liquidity, and democratizing access to traditional financial markets. Chainlink is positioned to capitalize on this opportunity by providing essential services for tokenization, such as price feeds, proof of reserves, and cross-chain connectivity. Tokenizing trillions of dollars worth of assets, including private markets and funds, holds immense potential for the blockchain ecosystem.
Chainlink’s community is anything but weak. Today we brought on two of Chainlink’s most prominent community members, ChainLinkGod, a Chainlink Community Ambassador and FishyCatfish, a miner, investor, and all around crypto enthusiast. The two of them are here to give us the bull case for $LINK.
0:00 Intro 7:00 What is Chainlink? 8:32 Ultimate Vision of Blockchains 10:19 Why We Need Chainlink 16:15 $LINK Genesis Story 25:41 Role of $LINK 30:12 Chainlink Validating & Value Prop 35:02 Bonds & Yield 39:30 Chainlink Service Fees 44:53 Fee Price Discovery 50:42 Decentralized Computing Marketplace 54:39 Chainlink’s Unique Value 1:02:05 Composabilty & Scope of Fees 1:08:00 $LINK the Capital Asset 1:11:00 Chainlink Yield Hooks 1:12:10 Collateral Equilibrium 1:13:07 Tokenization of RWAs 1:20:24 Numbers to Focus On 1:25:25 David’s Bull Case For Chainlink 1:26:27 Chainlink’s Next 3 Big Bets 1:31:38 Get Further $LINK-pilled 1:33:00 Closing & Disclaimers
