Egggg yolk, 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 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 Rambo’s, it’s 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 defacto settlement layer. We’ve covered scaling,
and data availability already, so today it’s 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,
it’s been known to be one of the more volatile crypto’s, 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 with
LINK, as it’s ultimate roadmap gets further into production.
Production what do you mean?? I thought Chain Link was live, right now on the mainnet? Well
that tis 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, 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 this time the sole oracle was CurveFinance.
This attack vector was also described in detail by Chainlink 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 it’s price feeds...I would be worried.
But chainlink is soooo much more than just price feeds my stinky friends.
And I’ve shown this before, the Chainlink token 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 call is
specific to internal transactions from chainlink, because if you scroll down,
the function senders are all chainlink 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 I’m telling you,
things are about to blow up regarding “transfer & call”...so Chainlink VRF, or chainlink Verifiable
Randonmness function, just went live on the mainnet. Yes you heard that right,
it’s a function...and it’s simple how it works. 1. a dapp sends a request for randomnes.
2. Chainlink nodes generate randomness and send proofs to the VRF contract. 3. The VRF
contract then verifies the randomness and 4. Smart contract application receives that randomness.
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 not feasible, because of the high gas fees. But,
chainlink with its ability, for reducing the high gas fees, with 677 and internal transactions,
makes this economically feasible and still bulletproof, secure and decentralized.
That’s why you see the mainstream dapps, already flocking to VRF. PoolTogether,
the decentralized no loss lottery dapp, 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 cryptosphere, 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 isn’t out, you don’t have to share the rewards!
Now, as you can see, Link Pool is second on the node list,
with 83 feeds, on the most jobs run over 146 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 reward, 30% will be deducted for our fee and
the remaining 70% will be distributed proportionally between the stakers.
Which they have made even better for the community of stakers a 75/25 split now..so
eventually, 75 percent of the fees being paid to them by requesting dapps will go
to link token holders and stakers. But I’m 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 Linkpool node 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 live,
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 crumby? 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 Chainlink’s oracle network, for a proof of reserve function, for the assets held in wBTC,
wrappe bitcoin. Now, this wBTC, bitcoin on ethereum, 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 bbbbulllish for Chainlink, and the nodes that are positioning
themselves to do the networks 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 BitGO’s
1.5 billion in Bitcoin for just wrapped BTC, 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 year.
Well that isn’t happening, but if chainlink fulfills its mission, the full roadmap, it’s
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 amount 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 it’s own tweet.
A tweet, that may just go down in history. Cheers I’ll see you next time!