Hey guys, I am new here

[Anonymous No.51251457]

Hello, I am new to crypto and /biz/. I am learning a lot. However, I am a bit confused and have a question. Why is the LINK token needed? Similarly, why is the UNI token needed? These projects don't share revenue with token holders, right? So what's the point? Governance? LOL!

[Anonymous No.51251530]

Tell us which subreddit you came from nigger faggot and go back

[Anonymous No.51251546]

>>51251457
Go back you faggot nigger no one's spoon feeding you.

[Anonymous No.51251577]

>>51251457
Really, you can think of any token as "share" for the respective group of developers/companies. Link doesn't really do anything, you don't need the token to use the oracles as far as I know. Uniswap? Purely governance to decide what happens to the uniswap platform, each token is a voting ballot, it's useless because nobody gives a fuck about governance and the creators are a bunch of trannies who tried censoring some cryptos on their platform outright and completely violated the "decentralized" aspect of defi, I don't trust them.

[Anonymous No.51251582]

>>51251530
>>51251546
Hmm please spoonfeed me. I know you will, despite your vulgarities. I am going to be your fren.

[Anonymous No.51251585]

>>51251577
Also, instead of sergey rewarding you for holding a "share" of their "company" he just endlessly dumps on you to fund the salaries of the hr roasties and talent teams, so not really a share

[Anonymous No.51251593]

>>51251577
Yes, I agree on the governance thing. Who gives a fuck? Meanwhile UNI is taking in millions and millions of dollars and not sharing it with token holders.

[Anonymous No.51251603]

>>51251585
What are some good tokens where you actually do own a share of the protocols and revenue?

[Anonymous No.51251620]

>>51251582
Oracles need collateral to incentivise truth equal to or more than the sum of the transaction to make an attack not worth it. LINK token is needed. You've fallen for a tranny meme.
UNI is a shitcoin.

[Anonymous No.51251624]

>>51251582
Ok so essentially the purpose of blockchain technology is decentralization and a movement towards a ‘trustless’ world. What is meant by this, is that blockchains are inherently under the control of no one entity, such as a government, corporation, etc. They are open to everyone, entirely transparent. Immutable, and uncensorable. Blockchains make massive sacrifices in order to maintain this decentralization, this is what makes blockchains valuable.

In order for blockchains to actually achieve something more than just sending tokens around, we want blockchains to interact with the real world, and we want to be able to have meaningful agreements and contracts on chain, something more than just ‘send tokens from address A to address B’. These are done in something called a ‘smart contract’. A smart contract is a piece of code that lives on-chain, this code automatically executes the instant the necessary parameters for its execution are met. Basically all of Decentralized Finance today is run by smart contracts.

[Anonymous No.51251650]

>>51251457
>>51251624
>2/X
Say you want to set up a smart contract for the purposes of betting on the super owl. Users send tokens to the contract putting their bet on either team A, or team B. If Team A wins, all the tokens go to the users who bet on team A. This is all very simple to code on networks like ethereum, except for one major problem: how will the contract know who wins the super bowl?

To get any information about the real world on chain, you need an ‘Oracle’. A reliable source of definitive truth. The obvious solution is to connect your smart contract to some website like sportsnet, and just use that as your Oracle. This will probably work fine, but remember, the whole point of blockchains is decentralization, if you have all these fancy decentralized networks running your smart contract, but the execution of the smart contract is entirely reliant on a centralized source of data, then what’s the point of all those decentralized networks? A chain is only as strong as its weakest link, it doesn’t matter if you have the most decentralized computing network in the world running your smart contracts, if the source of data, which governs how the contract executes is entirely centralized.

This problem, of finding a way to get information on chain, in a way that matches the level of security and decentralization of blockchains, is known as ‘The Oracle Problem’, and this is the problem Chainlink solves. Oracles are the most obvious, and most vulnerable attack vector for most smart contracts.

[Anonymous No.51251652]

>>51251620
>>51251624
Other chains use oracles and pay for them, where does they money go? Why isn't it given to people who hold LINK? Or UNI, in the case of Uniswap? These are just centralized corporations taking all the profits arent they? They they have a stupid token that isn't correlated at all, in order to appear decentralized?

[Anonymous No.51251668]

>>51251603
almost anything that lets you stake, pool, or farm the native token on its respective chain

[Anonymous No.51251700]

>>51251668
oh, right, you said good, didnt account for that. ethereum post merge, bnb (maybe), cardano (ghostchain, caution), just look in the top 50

[Anonymous No.51251703]

>>51251457
>>51251650
Chainlink solves this problem by decentralizing oracles. Aggregating the results of multiple ‘nodes’, to come up with one answer. There are multiple levels of security ensuring these nodes provide honest, accurate, data to the network, but i’m not going to get into those too much. Tl;dr is that they’re economically incentivized to be honest, penalized if they’re dishonest, and there is a reputation system and a number of safeguards that work to keep the oracles Chainlink provides reliable and secure.

The Chainlink token is used to pay for any of the services on the network, and eventually will be ‘staked’ by chainlink nodes, meaning it is locked in the network, and will be taken from these nodes if they misbehave. Chainlink is inherently modular, and customizable, so customers can pick and choose their nodes according to whatever needs they have.

Chainlink is currently the only major player in the oracle space. They have a significant first mover advantage, and the network currently secures billions of dollars locked in DeFi. Chainlink is already the standard. They have yet to see any serious competition, with other competitors like api3 having nothing more than a whitepaper and no customers. Almost every major protocol uses chainlink oracles to secure it, with the notable exception of MakerDAO and Compound. Notably, both these networks have suffered from attacks on their oracles, which have lost their users millions of dollars, Compound recently announced that it was planning on moving to Chainlink oracles.

In the long term, unless some other, superior solution is found to the oracle problem, chainlink stands to have a monopoly on secure oracles. The market for this is massive, the derivatives market is worth literally quadrillions, and chainlink is primed to secure that entire market as it moves on-chain.

[Anonymous No.51251710]

>>51251668
also, it doesnt need to take place on the protocol level, some crypto exchanges reward you for holding their exchange token

[Anonymous No.51251712]

>>51251652
Uni isn't an oracle retard. Dyor.

[Anonymous No.51251720]

>>51251710
Ignore this nigger too.

[Anonymous No.51251730]

>>51251712
I know. But it is similar in the fact that the token is a deception. It isnt economically connected to the project.

[Anonymous No.51251763]

>>51251457
>>51251703
>>51251652
The link token is currently used to pay for any job done by Chainlink oracles. Whenever staking is released the token will be put up by oracle operators as collateral to ensure their trustworthiness. Expect this to take a significant amount of link out of circulation. UNI is a governance token meaning by holding a certain amount of UNI you can vote on specific issues or future updates you want to see released.

[Anonymous No.51251786]

>>51251720
cope, sergey is slowly bleeding you to fund his mcdonald diet, nothing i said is wrong

[Anonymous No.51251804]

>>51251730
I explained why it is needed. You didn't want to listen to dyor to confirm my truth. You can fuck off with the tranny nigger.

[Anonymous No.51251868]

>>51251730
Services on the Chainlink network are paid for in LINK. Anybody can spin up a node and get paid if they have the technical chops. Right now token holders do not have any means of making money from the Chainlink network. Basically being a token holder alone doesn't economically connect you to the network, until staking that is.

[Anonymous No.51251960]

>>51251868
linkies love to conveniently leave that part out, dont they? thanks for even covering it though

[Anonymous No.51252016]

>>51251960
ngmi

[Anonymous No.51252036]

>>51251960
>linkies love to conveniently leave that part out, dont they?
This is maybe the single most widely discussed thing amongst LINK holders.

[Anonymous No.51252221]

>>51251457
Hey man welcome to biz. Just sent you some bredkrumbz to your inbox. Also check this one out. Massive potential here

[Anonymous No.51252237]

>>51252221
How do I give this post reddit gold?