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Tuesday, October 4, 2022

Bend the Knee to CHAINLINK

What’s the action, with the recruits of the Chico Army & if you’re new, looking for something to do, step right up to this crew & drop the title of the viewer of the tube.

My name is Tyler, and the training to join my army, makes the navy seals look easy you know our future Rambos, its time for Chico Crypto Well, I said I was going to do it cover all the pieces of Ethereum which will position it into becoming cryptocurrencies the factor statement layer.

We’ve covered scaling, and data availability already, so today its time to dive into decentralized oracles one of the more critical pieces, as it solves the oracle problem of blockchains. You hear oracles, especially decentralized you better know your boy Chico, is about to let one RIP & get stinky.

So Chainlink, it’s a wild company and protocol to be a part of. Price-wise, its been known to be one of the more volatile cryptos, having extreme FOMO cycles, back down, extreme FOMO cycle back down…and most recently went back down from a FOMO cycle, although the price has been slowly but surely creeping back up.

Now, in the next 6 months, things are going to get highly interesting once again withLINK, as its ultimate roadmap gets further into production. Production what do you mean?? I thought ChainLink was live, right now on the mainnet? Well, that is true, chainlink has the highly popular oracle price reference feeds, live and in production from their network of nodes, creating a decentralized per example ETH USD price feed.

Now, I’m sure you guys heard about it, a new hot DeFi protocol came and went. Harvest finance was attacked 24 million stolen, and the protocol lost all the lockup, 570 million, in a flash bank run.

So how was the 24 million stolen? Well bad freaking code, but nothing to do with base solidity contract code, bad oracle code. The harvest hack wasn’t a hack, it was an exploit of their oracle. Harvest finance was relying on a single on-chain oracle price feed, from curve finance their price feed. You cannot rely on a single source of information, that’s not validated and that is susceptible to manipulation.

If they would have used LINK, the harvest would have been secure from the oracle flash attack that was pulled off and this attack isn’t old, it has been pulled off before. Chainlink God on Twitter said This specific attack was explained by@samczsun over a year ago and is the same attack vector that afflicted bZx earlier this year. Except for this time the sole oracle was CurveFinance.

This attack vector was also described in detail byChainlink in an article earlier this year as well. Secure price feeds require full market coverage, this is why Chainlink pulls from multiple data aggregators and not just from a single manipulatable DEX So, the value, use case for chainlink is once again demonstrated & if a new DeFi product on the Ethereum mainnet is holding out on using chainlink for its price feeds I would be worried.

But chainlink is so much more than just price feeds my stinky friends. And I’ve shown this before, the Chainlinktoken contract, specifically erc677 includes a specific function, transfer and call.

You can view data on this function by using bloxy, and the number of transaction calls, the orange has overall been steadily growing This growth, means chainlink oracle node growth, as transfer and calls are specific to internal transactions fromChainlink because if you scroll down, the function senders are all chain link smart contracts, and internal transitions from those smart contracts, some of them price feeds like the BTC/USD aggregator.

But some of these aren’t going to have anything to do with price feeds, and Im telling you, things are about to blow up regarding transfer &call…so Chainlink VRF, or chainlink VerifiableRandonmness function, just went live on the mainnet.

Yes, you heard that right, its a function…and its simply how it works.

So, going through those steps, you have: request, generation, send, verify, and finally receive…many steps, five to be exact, that could all take a single smart contract execution. AKA isn’t feasible, because of the high gas fees.

But, chainlink with its ability, for reducing the highs fees, with 677 and internal transactions, makes this economically feasible and still bulletproof, secure and decentralized.

That’s why you see the mainstream apps, already flocking to VRF pool together, the decentralized no loss lottery app, backed by Coinbase just put out a blog post, explaining how v3 will be using VRF for their randomness generation, in picking the lottery winners.

Mainstream adoption of Link within the crypto sphere is only going to ramp up with VRF meaning the 96, as of now, LINK nodes will be much more data and transactions through them, running many more Jobs. Now, as a Chainlink token holder, how does this help? Well, Link nodes are paid, for the jobs they perform, requesters are paying them in LINK.

It’s a valuable thing, to be a solid, reliable, used chainlink node, as since staking set out, you don’t have to share the rewards! Now, as you can see, Link Poolis second on the node list, with 83 feeds, on the most jobs run over146 thousand.

Well they put out a blog post, about the economies of their nodes…and in the section Link Pool Fees this is highlighted, Any Link tokens that our nodes generate as a reward, 30% will be deducted for our fee and the remaining 70% will be distributed proportionally between the stakes.

Which they have made even better for the community of speakers a 75/25 split now..so eventually, 75 percent of the fees being paid to them by requesting apps will go to link token holders and speakers. But I gonna let the Army in on a little secret, now is the time to be learning about entities like Linkpool.

Why you may ask? Back into that economies blog post in the sections Linkpoolnode queuing they say Places on a node will be granted on a first come first serve basis and rewards will be distributed on a per-node basis so you will only earn rewards from the node your link is staked on.

We will deem a node is full once it has hit a certain amount of Link tokens staked on it And LinkPool, has their staking dashboard ready and lives, they’re just waiting for staking w/Chainlink to drop, and the floodgates will open.

But there is more w/ linkpool like I said now is the time to learn about them. Matt Beale, co-founder of linkpool responded to an inquiry about what was going on over at linkpool. He said Fine, I’ll give you this- ERC20, derivatives & strategies Dropping crumbs now you ready to get even more crumbly?

So, earlier this month, a large entity, one of the largest custodians of digital assets in the space, BitGo, announced they were going to be using Chainlinks oracle network, for proof of reserve function, for the assets held in wBTC, wrapped bitcoin.

Now, this wBTC, bitcoin oneth ঢreum, is worth over 1.5 billion dollars today…a crap ton of money, chainlink nodes will be verifying that’s there including linkpool. But here is where things get even more bullish for Chainlink and the nodes that are positioning themselves to do the network’s work. We all know Paypal, went full hard-on for crypto. Well, last week, it was leaked they were looking to acquire critical crypto firms…including BitGO. So, I hope you understand, how freaking big that is.

Chainlink nodes are securing BitGOs1.5 billion in Bitcoin for just wrappedBTC, how much do you think Paypal will have under their custodianship? 1.5 billion secured with Chainlink proof of reserves, will look like little peanuts in maybe just a year.

Now, I’m sure you’ve heard the mem,1000 per LINK eoy, end of the year. Well, that isn’t happening, but if chainlink fulfils its mission, the full roadmap, its not out of the realm of possibility much farther into the future.

And, part of that roadmap, is optimistic rollups, with chainlink nodes. I spoke Monday, on rollups, and the teams I talked about, were not very far, limited testnets, with no general-purpose smart contract ability. Well, Arbitrum, they are the furthest, with a general-purpose smart contract rollup testnet…and if you didn’t know, chainlink nodes will be executing smart contracts on Arbitrum rollup chains. If rollups are the path to scalability, holy freaking christ…the number of jobs the link nodes will be doing, will be hard to comprehend. And Arbitrum, they dropped some stuff about the rollup testnet a few days ago, with some of the things it works right out the box with…a person is worried says I don’t see chainlink.

Arbitrum replies, Chainlink integration will get its own tweet. A tweet, that may just go down in history. Cheers, I’ll see you next time!.

Read More: Cardano : is it too late to get in ?

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