Hey yo, what is going on, what is up & what
is right with my people, who I like to call
the viewers of the tuuubee.
My name is Tyler and you just entered the
crypto channel, that keeps it weirder, than
7/11 at 3am in the gosh dang morning….you
know how we keep it brief, in our briefs..it’s
time for Chico Crypto!
Weird you say Chico, let’s get weird to
end this work week & bring on the weekend?
How about we get stinky?
I’m talking that stank, rank, chainlank.
There is a lot to talk about with those stinky
linkies, staking, the service agreement, baseline
integration & more…
So let’s begin with something that I know
is the most important piece of chainlink,
the service agreement, which involves staking,
which involves decentralizing the entire network
of oracle nodes.
So, if you didn’t know, chainlink is live
right now, their is a network of oracle nodes,
providing data to requesters.
Chainlink market, has a great list breakdown
of the nodes, and the data request jobs they
have run.
Linkpool, 27 data feeds & over 121 thousand
jobs ran, chainlayer, 28 data feeds & over
113 thousand jobs ran, Fiews, 111 thousand
jobs ran with 32 data feeds, and the list
goes on…
But right now, since there is no service agreement
and staking with nodes, the chainlink mainnet
isn’t fully decentralized yet.
These service agreement contracts are not
required for the early version of Chainlink’s
mainnet.
Currently, node operators can still accept
jobs and get paid in LINK for completing said
jobs, but no upfront tokens will be required
to accept the job and therefore there is currently
no ability to stake nor do nodes require any
LINK tokens on them.
So requesters are still paying the node operators
to retrieve data and reach consensus on the
data that is provided.
So as of now, it works like this...requesters,
from the world of dapps, applications and
more….aka web3, aka the decentralized computation
network...needs data, it submits a job request,
in the form of smart contract to the chainlink
network or oracle nodes, and those nodes get
the data from providers, who they are connected
to...the nodes connected to the data providers,
the requester wants, reach consensus on the
data provided, and then send it back to the
requester, in the decentralized computation
network.
So, you are not using a single node, to get
the data, a single point of failure and creating
centralization in smart contracts, which are
supposed to be decentralized, including the
dapps running them.
You can’t have decentralized computation,
without decentralized oracles.
Now, we have decentralization, in providing
data back to requesters, the world of web3
and computation.
But, since the service agreement and staking
isn’t there yet, there isn’t a way to
be fully trustless, with the node operators
as they don’t get penalized for bad data,
or bad uptime.
But those service agreements, and the staking
that comes with it makes #1 both the node
commitment and performance of the node, is
on chain and fully verifiable, #2 Oracles
who deviate from their commitments, have an
immediate economic loss from their stake...and
#3oralces who can’t fulfill their commitments
won’t be selected for other job quorums,
losing out on a ton of potential revenue.
So staking is about decentralization, but
not in the sense of coming to consensus, staking
is about creating crypto economic security,
so data requesters can trust the network,
and not a single entity.
And this is when Chainlink goes nutty mc futty
in my opinion….why...Do you ask?
Well, since the jobs they are running likely
have to do with a lot of money, the oracle
node operators in the network, have to stake
that dollar value in link with their node...remember
immediate economic loss from their stake?
Yes that is so they don’t provide bad data
to a say derivative contract worth 100s of
millions of dollars?
What?
Your saying 100s of million of dollars in
Chainlink will be staked by node operators
when the service agreement goes live?
Ya I’m kind of saying that, as during a
baseline protocol meeting, it was dropped
how much value is being secured right now,
in the current version with chainlink nodes...let’s
listen in.
Yes, 100s of millions, so when the service
agreement goes live, we should see 100s of
millions of dollars in chainlink staked right
away.
And the flanman, himself, Sergay…...decided
to do a long, long presentation on Chain Link
just a couple days ago, titled “The Evolution
of Smart Contracts and Cryptoeconomic Security”...and
guess what?
He explained the staking that is coming.
Let’s hear what he had
to say…
So, the stake rewards, they will be paid out
based on the service agreement, could be right
back to the node, could be to dapp developers,
could be to users of the app, could be to
stakers with the node or combinations of the
like & chainlink is going to support 2 types
of staking.
Implicit and explicit.
Implicit, is what is stands for implied, but
not plainly expressed.
Node operators in Chainlink, have a stake
with the network, if they deviate front he
protocol, the asset they hold, Chain Link
will decrease in value, if they provide good
data and don’t deviate, Chainlink will increase.
An explicit stake is just that, stated clearly
for specific contracts...but the combination
of the two creates a bulletproof economic
security layer for the network.
So when is this coming?
When are we going to get that sweet stake
and service agreement?
Well you should have this web link saved,
if you're a linkhead like myself.
The chainlink pivotal tracker, of which the
link for it is in the description.
So this is where the chainlink development
is tracked, and we can search by service agreement
to see what has been completed.
Typing that in to search project, we find
all the tasks that have been completed.
As we can see there are 26 done stories aka
development task…
Let’s check them out….a specific done
story, is this one...the service agreement
initiator...that is done, so agreements can
be initiated….how about tests?
Have tests been done with the service agreement….as
we can see, add service agreement integration
test, is done and completed.
And finally, we can see the last thing completed
regarding the service agreement was adding
agreement aggregators into the service agreement.
But then we get to the icebox, the blue, these
are stories that have not been scheduled and
as we can see, basically there is 50 percent
to go regarding the service agreement.
How long will this take?
Well I’m not going to make any more predictions
regarding the chainlink staking date, I have
been soo wrong before, thought it was coming
out last year.
But, the fact that Sergay is speaking about
it, on a deeper level, leads me to believe
the staking & service agreement is about to
get a development sprint & we will see many
of the tasks in the icebox, be scheduled and
start turning green.
Now, the thing we need to worry about, in
the meantime... is the growth of the chainlink
network, node operators, data providers, and
the requesters.
Because when this goes live, it creates a
self reinforcing loop, which will be hard
to beat in the oracle space.
Well, we can visualize this, with the LINK
rewards being paid out.
The more LINK being paid to nodes, the bigger
the growth of the network all around.
And just look at the growth since launch of
the mainnet, exponential growth with now over
600k LINK tokens paid out since launch, and
that data put together by crypto sponge ended
on May 25th, so I wouldn’t doubt another
50k tokens has been paid out since.
And you guys, this is just DeFi crypto related
stuff, we aren’t even talking about the
outside world, some of Chainlinks major enterprise
partners diving in.
So you guys know Fidelity, they have branched
into cryptocurrency with Fidelity digital
assets, well Fidelity has some patents out
there, regarding smart contracts and blockchain
data fetching oracles….
They manage 2.4 trillion dollars, and guess
who is apart of ic3 together?
Chainlink and Fidelity Labs...the ones who
file patents for Fidelity...as we can see
from their website 200+ since its founding
in 1999 & as we can see from this old article,
Fidelity started their patent program in 2012.
So 100s of million versus trillions, that
could be coming in the future for chainlink.
Down the road yes, but seeing patents filed,
by Fidelity Labs who has been working alongside
chainlink with IC3 since 2017...ya I hope
you get the picture.
Cheers, I’ll see you next time!
