Are there any reasonable estimates on how much LINK nodes could generate?
LINK node payment speculation - 160+ IQ thread
Dominic Brooks
Zachary White
Yes, here is some pasta:
I think we can work out the income you could make from a node based on the number of monetised API requests that are being made nowadays by traditional businesses and the amount they charge.
>nordicapis.com
Assume that smart contracts requiring external data become mainstream and the crypto API economy reaches the same size as the regular API economy now. Let’s take the “hobbyist” from nordicapis.com as equivalent to a NEET running a chainlink node. That’s 688,991 calls per month. Per year it’s 8,267,892 calls. Say you charge $0.01 per call, which nordicapi reports, and is the minimum Oraclize charges. That’s $82,678.92 a year. IBM Watson charges $0.0025 per call which would be $20,669.73 per year. Bear in mind Oraclize surpassed 1 million calls in 1 recently.
Docusign says for their API that "You may not exceed 1,000 API requests per account per hour". Kek, ok so 1000 per hour is 24,000 a day, times 1 cent per job is $87,600 per year per node operator. With 19,000 node operators (Sergey's number) serving 1000 API requests per hour that's a total revenue of all nodes of $1,664,400,000 per year. That’s only 0.08% of $2.2 trillion (estimated total value of API economy in 2018).
>However it’s unlikely all 19,000 nodes will be high level business, many will probably be hobbyists
I don’t think Chainlink nodes will receive that many jobs upon mainnet launch. But as the smart contract economy grows it will need more and more APIs. I would strongly suggest running a link node and holding it until mainstream adoption.
Isaiah Peterson
just like any other crypto. IF there even will be a mainnet it won't be used. So maybe 0.4$/month
Nathaniel Bennett
not more than the AMBROSUS node sir, do the needful and be purchasing the ambrosus token for millionaire end of year!
Camden Wright
Basically, the income generated by a LINK node is a function of two things:
>number of jobs done
>$ reward per job done
So the above pasta provides examples based on the *current* market for APIs. These aren't being fed into smart contracts, though. So Oraclize is really the best source of information to make this guesstimates, and, as is mentioned above, they recently hit 1 million jobs (I believe this was within 1 year, but can't remember. The announced it on Twitter some months ago). We can also assume that Oraclize is the minimum that would be running on the Chainlink network since we all know Oraclize is garbage. So let's come up with the minimum estimate:
Assume that the ENTIRE chainlink network matches Oraclize, with 1 million jobs in 1 year. That is 2739 calls per day. Multiplied by $0.01 (the minimum Oraclize charge) is 27 cents per day. Per year that is $10,000. Then you would divide that by the number of node operators - a pitiful amount (the example in the pasta reasons that the revenue would not be divided among the number of nodes, i.e. diluted, perhaps this would happen after the network fully matures but really no one knows).
Connor Fisher
Cool, interesting stats but also gotta keep in mind it's not just one node. Smart contracts will be using multiple nodes for each contract with Chainlink, so payment gets spread out too.
So let's say the average payment to nodes stays around $0.01 per API call for smart contract creators (more than IBM watson because chainlink is literally required and provides much more security). Say the average amount of nodes per contract comes to 10 (I have no fucking idea how accurate that would be). That's $0.001 per node per call.
Let's say there's 60 trillion API calls a year.
>(twitter alone was doing 6 billion a day / 2 trillion a year way back in 2010 techcrunch.com
If that's near accurate, and public smart contracts grow to be 2.5% of those API calls, with Chainlink having a monopoly here (total API call will grow into much more than this though, especially with open banking APIs in europe):
>That's 1.5 trillion Chainlink API calls per year on public networks.
>That's $15 billion paid in total Chainlink API calls yearly.
What's a reasonable estimate of how many nodes there could be at this point though?
Currently 19,000 people have told Sergey they're interest in becoming node operators before it's even begun.
Noah Robinson
>So let's say the average payment to nodes stays around $0.01 per API call for smart contract creators (more than IBM watson because chainlink is literally required and provides much more security). Say the average amount of nodes per contract comes to 10 (I have no fucking idea how accurate that would be). That's $0.001 per node per call.
Yeah I get what you are saying but it's not necessarily going to be like that - we don't know whether smart contract creators will be willing to pay a premium for decentralization. Meaning they may pay the $0.01 cent per node, not per contract! Sergey has said himself that he doesn't know how much people will be willing to pay for decentralisation, but if it does mean better security, then it stands to reason that it would come at a premium, so price wouldn't be split between nodes.
>What's a reasonable estimate of how many nodes there could be at this point though?
Presumably it will be an ever-increasing number...
Lucas Collins
How much LINK to run a node?
Ryan Martin
Yep that's true. Going by that as the reported & oracalize price shared out as a minimum.
Yeah I guess so. But a number as a guess? no idea
Man the potential scale of this is starting to hit me. Really would not surprise me if there's some gigantic players accumulating in order to become leading nodes and get a big piece of the pie.
0 to whatever you want to put up as collateral. The more you have the more you can put up as a penalty for if your node goes down or provides data that deviates from the average too much. You get the higher priced contracts with more LINK.
Lincoln Nelson
>The more you have the more you can put up as a penalty for if your node goes down
This is what I am worried about. Lets say I had 20k Link in a node and suddenly my power went out, or the internet went down? Would I lose all 20k of the Link if a high value contract happened to be running at that point?
I live in a shitty country area, and the internet is constantly going in and out. I would bet 1MM that my internet would crash at least once every 24 hours.
I am seriously thinking of putting my node on a cloud service.
Anthony Gomez
This is a 160IQ+ thread, please leave.
Easton Young
Something to consider I've seen a few people saying to use cloud services instead yeah. Not sure how strict it's gonna be but guess you just gotta put up the maximum you can risk while still being profitable if you lose it from time to time. Just think of it as running costs.
Adam Gomez
or you could use a pool instead if your rep's gonna get rekt from it.
Hudson Barnes
so what would be a metric used in calculating the price per LINK token given how much it rakes in a month? $10-$15 seems like a given if it becomes adopted, but that only leaves it at a 10-15b market cap.
$50-75 seems like an outreach but also plausible at 50-75b market cap.
Juan Watson
Fuck off faggot, not everyone is a tech nerd here.
Yeah I'm considering using Linkpool or one of it's competitors too but they will take some of my profits.
My other option is just running a physical node from my brothers place. He lives in an urban metropolitan area with fantastic internet, and no powerouts ever. Meanwhile I live on a literal actual farm. The problem is I don't know how much daily maintenance running a node will take. It's gonna cost a lot of fuel and time to drive down to my brothers daily to maintain the node unless I can do it remotely.
Maybe I will put 20k in a node on the cloud, 20k in a node at my brothers. And then maybe 10k for a pool service, 10k for trying to run one on my own property as an experiment, and just for backup link.
Angel Bell
Linkpool offers Node as a Service where you pay a monthly fee and they run the infrastructure while you retain full control of the node. It'll be more profitable than linkpool staking, seems like the best option
Carter Parker
running a node at home is dumb af. if youre going to provision a node do it through a cloud provider, they have SLA's that promise uptime.
Nathaniel Jenkins
If you do not know the answer to some of these really basic questions, use a pool and save yourself getting burned.
Michael Powell
Sorry I was not brought up with a tech background. I literally do not know the answers to these basic tech questions.
I guess I will put half in a "node as a service" from Linkpool, and the other half on a node through a cloud provider then.
Ryan Ortiz
damn fag dont you know where you are dont get all defensive and shit people dont have to be nice here. Were just trying to help so you dont lose all your linkies. Were a broken people and we have difficulty helping people. So when you see things like, fuck off no one wants you, you should interpret that as you better listen you stupid fag I'm trying to help you.
Landon Mitchell
>implying anyone will use chainstink
Jackson Perry
You were asking about running a node with 20k Link as a collateral from your basement with your mom DSL connection.
You don't have to be a tech nerd to realize that it's a bad idea from the get go.
And you basically ruined the thread.
David Ward
hello fellow brainlet, i am also brainlet. Here is my thinking brain: linkpool takes 25% of rewards you keep 75%. If running a node by your self or paying for node as service costs less than 25 % that you pay, then its more profitable to go with those other options. However being a brainlet is also something to be included in the equation. SAY brainlet cost is 10% of the 25% you give to pool, so if somehow you find an option that will cost you 15% of those said rewards ( im talking electricity, running server, api feeds, also u wont get high contract value apis) you will still have to get smart, which will cost you another 10% of the reward pool takes, bringing you back to square 0.
Therefor i conclude that becuase im a brainlet the 25% of rewards is to be considered a cost of my retardation and incompetence to run my own node.
Michael Parker
Serious question; why would Link nodes be worth much at all? If everyone essentially can create them, wouldn't they just turn into some analog to bitcoin mining, where the profitability will be based upon the electricity price.
As i have understood it, the potential high value of Link tokens comes from it being used as collateral.
t. sub 130 IQ.
Hudson Torres
You can only lose whatever you put up for the contract, you wouldn't lose the entire stack.
If you don't know how to prevent stuff like power outages, running a node is definitely not something you have the skills and knowhow to do. Use a pool.
this desu
If you don't know this kind of stuff, I would suggest you should give up on running your own node OR actually start learning and researching. if you don't have a tech background you should either give up on running a node, or start learning about cloud providers and all this other shit. You can ask Thomas in Slack or Discord probably if you really want to get your teeth into it there are plenty of people willing to help and tutorials available
Logan Rivera
How did I ruin the thread? I'm just asking questions. That's what threads are for.
How on earth am I defensive? I literally just stated I don't know anything about tech and am asking for some help on how running a node works.
I understand. I am a complete newfag when it comes to technical stuff, my brother is doing comp sci and I was gonna rely on him to set up all the technical crap. I want a profitable Link node because I'm going to be setting up and running my own business (unrelated to Link or crypto) and want it there for extra funds so don't need to rely on getting investors.
I'm only a brainlet when it comes to tech stuff. Not with anything else. Eventually I could just hire some nerds to run my node for me if my business is successful enough and I can change to a good location and run a server farm for it or whatever else is needed.
Jonathan Lopez
>If everyone essentially can create them
Yes but you need to buy a stack of LINK first so not anyone can create them, you'd also need technical knowledge, so very few people will actually be able to do it...
>wouldn't they just turn into some analog to bitcoin mining, where the profitability will be based upon the electricity price
What? No. I don't even understand why you would think that.
Income will be a function of cost per API call and number of calls... see posts above. token price and node income are separate but related issues.
Luke Howard
It might be beneficial to help at this point though since helping someone else making a node will also help you by helping the network improve its reputation
Hudson Ortiz
Link is shit
Levi Lopez
I don't have the time or inclination to tutor someone on a wide breadth of IT knowledge that will be neccessary for running a solid high value node. His best bet is to use a pool. I am trying to save him a lot of burned link.
Aaron Kelly
Thanks for this. I've got some of the tutorials open in other tabs already. Read through it but it still goes over my head because I can't even program. So I rely on my brother. And I know my word is shit, but it's like he specced programing/tech stuff to max with not much on anything else, meanwhile I am the opposite. Nothing in tech but good on other stuff.
When he finishes his degree we are gonna run a business together with him taking care of all tech aspects, with me on business.
All I wanted was to know if my plans are shit or viable. Seems they are shit. Thanks for the input and thanks for the tips on what to actually do. I'm not asking to be babysit.
I think I will just put the majority into a node at Linkpool and then consult with my brother about running a node on the cloud with a minority amount of Link. He's got some Link as well so it's in his best interest. But he's studying so got no time to browse Jow Forums and investigate unfortunately.
Hudson Jackson
Just start off with Linkpool.
In the meanwhile there will come plenty of information about running your own node, the return you get, the risks, how other people do it, etc. Then you start messing with your own node.
Adam Garcia
>I wanted was to know if my plans are shit or viable. Seems they are shit.
no sweat. GL fren
Juan Clark
Remember to buy gold with your Link profits. Gold is real savings and real money. You don't want to make it and then lose it after the dollar implodes
Ryder Watson
BTC > gold
Andrew Carter
to totally protect your investment and your reputation on the network it would be worth it to use a VPN service with a UPS for your hardware aswell.
Camden Hughes
Whatever the rate is, it'll be above 5% annual. With incentives it might be 7.5%.
Asher Perez
Juan Perez
lol what a piece of shit this project is
Joseph Miller
based
Elijah Peterson
Ohh you have ah verr smarr peee nus ahh.
Landon Wright
HAHAH NOOBS BUYING LINK ON BINANCE
WHEN YOU CAN JUST GET IT FOR FREE ON TAP
HAHAHAHA
NOOBS DONT KNOW ABOUT FAUCETS HAHAHAHHA
BEEN DUMPING THIS SHIT ON YOU FAGGOTS FOR MONTHS AND MADE MILLIONS
IM RESPONSIBLE FOR IT DROPPING FROM 60CENTS TO 20 HAHAHHAA
CUNTS
Nolan Parker
Noah Ramirez
Jayden Johnson
$1 per Link per day well before mass adoption
check em faggot
Chase Wilson
Kevin Adams
Isaac Jackson
Cameron Collins
Hunter Johnson
SOUNDS FUCKING JUICY.. .CHECKED THE DIGITS BOYSSSS
Jason Gutierrez
This but unironically. It will be interesting to see how the price reacts in the months after the main net and (almostkr no one is using it. I hope linkies will succeed though.. I don’t hold Link myself but the memes are great.
Ayden Reyes
amazing
Aiden Howard
This.
The main-net meme has been a massive disappointment for every shitcoin because no one uses any of this garbage.
Jackson Clark
It's worthless without mass adoption, nobody will use it on launch. Sell before.
Lincoln Edwards
Nice fresh memes. Nice one OP.
Cooper Green
You need to shut the fuck up kid, no one wants to read that shit.
James Mitchell
CHECKED
Joseph Sanders
Running a chainlink node is easy af, it's the ethereum client that's a bitch. Linkpool I think has something you can use, but it's not for production use. I've been using fiews for free for now. I think they will have some SLA for mainnet and you'll have to pay. No pricing yet.
Connor Rodriguez
I really think link will only be half decentralized because once sergey sells the other half of the supply to institutional node operators it will be in their best interests to run nodes to fulfil requests. We are truly part of the new elite.
Easton Bailey
This is exactly my thinking. Also, keep in mind that we (linkpool holders) get a cut of the fees paid by the NaaS users. Very comfy.
John Mitchell
This is uncomfortably accurate
Kayden Walker
because every other shitcoin doesn't actually do anything or have anyone using it
LINK is not the same, but the timeline is very long and filled with potholes, but ultimtely we are correct and must keep a position in chainlink for the next two decades at least
Christopher Robinson
Is linkpooling tax free?
Ryan Flores
Who exactly is going to be making these billions of api calls? Not sure if you've noticed but nobody is using "dapps". That was a fad that came and went when everyone realized there is no demand. All these estimates are assuming mainstream adoption of smart contracts which is years away if ever.
Nicholas Collins
the idea is that companies will start to use it as an attempt to lower operating costs and improve profit margins. if you could wipe out a whole department of worthless neets and increase shareholder profit then it's almost justifiable to do so. now if some do this, it's almost imperative that other companies will follow suit, right?
Brayden Mitchell
There are actually a few crypto's which have a working product but no exposure to mainstream normies because they dont understand the space and don't trust it after bitcoin went from 20-4k. its going to time and a lot of fucking explaining to get a thing like decentralization across to a bunch of idiots. but the end goal if we reach it is fucking enormous.
Blake Morgan
Thanks. The people on this board are the most deluded I’ve ever seen. For god sake, absolutely no fucking one use today smart contracts. What the fuck are you talking about thousands of api calls?
Camden Powell
nobody is using dapps because smart contracts usecase is limited beyond tokenization. Smart contracts have no current way of delivering secure data on-chain.
You do realize the reason we are all invested into chainlink is because we see just how limited smart contract usage is?
Blake Kelly
Can anybody supply me with the obese red & green Sergeys?
Gavin White
You don't need to explain smart contracts to me I'm aware of the potential benefits my point is that NOBODY is using them today and probably won't be for years. These estimates of potential returns are basically best case scenario in 2021. Biz needs to put the hopium pipe down.
Adam Cruz
One thing I don't understand is, who will providing the data? I mean, I'll have to manually check data related to the contract and report back? If not, how will my LINK stack do that by itself..?
I'm completely lost with that.
Xavier Jones
you subcribe a node to an api and deposit link into node. wait for people to query your node on some sort of official platform
Nathan Roberts
Cope. They could easily use oraclize or another centralized oracle in the meantime and it would work just fine. Use case aren't limited by oracles they are limited by lack of demand. The reality is there aren't that many good use cases for blockchain in general and smart contracts are an even smaller subset of that. I believe there will be in the future not for another 2-3 years. Fags on this board that think smart contract adoption will suddenly explode because of chainlink are deluded neet retards that don't live in the real world.
Samuel Wilson
>t. Low IQ brainlet
Ryan Campbell
Your talking like holding for 2-3 years is a long time...
Kevin Sanders
No. You won’t be sitting there manually entering the data. Think some type of distributed ledger like how bitcoins blockchain operate, but instead of keeping a record of just transaction history you’ll store data involving prices, titleship and all kinds of finacial records.
Every time an entity wants to retrieve a piece of information onto their contract, it will ping multiple nodes, who present the information, and the network aggregates a median response and delivers it into the contract, while also paying out the nodes who provided the information.
Your link “stack” is nothing more then an er667 token, which only purpose is to pay out node operators and as a way of providing collateral which is necessary to prevent Sybil attacks. The token itself does not have any special properties.
Caleb Wood
>can't refute my statement
>post brainlet.jpeg
>haha I sure showed him
Typical linky cope
Adrian Myers
>wants smart contracts coupled to centralized connectors that are coupled with APIs
>does not think that decoupling and decentralizing is requisite to a network of these technologies achieving a critical mass of users
Easton Brown
>They could easily use oraclize or another centralized oracle in the meantime and it would work just fine.
Wrong. The only reason a company would switch to a decentralized method is because of added security. That is really the only advantage a decentralized system has over a centralized one. Without the added security its a rather slow and expensive database.
The problem with centralized oracles is that the added security is essentially wiped because the entire trust now lies on that single oracle. It can be a target of hacks, downtime and faulty information and the only feasible way of preventing that is using a network of decentralized oracles to maintain a level of safety and reliability.
>The reality is there aren't that many good use cases for blockchain in general and smart contracts are an even smaller subset of that
You're so wrong man. Its use is limited now because the only function a smart contract provides currently is tokenization. If you are in this thread asking questions, then its obvious you are interested in investing. As an investor you need to look not whats is happening currently, but the implications of what it can achieve in the future.
What originally got me interested in smart contracts is the way it can be used for settlement failure. Settlement fail accounts for billions and billions of lost money a year. With the current system, entire offices of accountants and lawyers exists to reconcile contractual agreements, which is very expensive and labor intensive. Smart contracts can completely automatize and streamline this process.
>I believe there will be in the future not for another 2-3 years
2-3 years for a big leap in technological improvement? Are you the most impatient man alive? 2-3 years is right around the corner.
Christian Reyes
Tell me more about the summer you spent as a Dubai Portapotty. I missed your last blog post about it.
Jace Harris
nice rebuttal, faggot. I can tell you've done your research on this and know a lot about the market.
Liam Cox
>2-3 years is right around the corner.
You know full well zoomers don’t have that kind of time
Samuel Turner
kek
Hail sergey
John Gutierrez
eventually, yes, the cost will coincide with the price of electricity because it takes power to run the nodes.
Brandon Reed
If you actually did your research you would know that companies aren't looking for a middleware solution and just waiting for ETH 2.0 to have silo'd data oracles and ZKPs. There are actual products waiting for deployment and none of them are signed on to use chainlink.
Zachary Sanchez
>smart contracts are an even smaller subset of that
I'm in the enterprise architect end of IT for financial organisations, and recent focus is heavy on event driven architecture
smart contracts are event driven architecture that can be used internal, external, and securely to boot. its definitely game changing, if you dont see it you just havent looked hard enough (or maybe dont get it)
Easton Long
Why don’t they use smart contracts today? What’s the brickwall they always run in to? Yes, time to buy 100k link.
Grayson Smith
Ryan Cooper
The internet took 18 years for adoption to take place. If smart contracts do end up working, it will take a long time for adoption to occur.
Jacob Allen
>"beyond tokenisation"
>doesn't comprehend
Ayden Sullivan
Yeah, sry you guys can't run nodes. I'm a oldfag sysadmin and I don't even know if I want to fuck around with it. Who's API calls are you going to Chainlink? How are you going to market to these potential customers?
Easton Flores
enigma is going to eat away about 50% of your market share by 2020
yes you should be worried
Andrew Martinez
Lol...no
Adrian Richardson
There will be a dozen better competitors by then
Mason Moore
Ian Butler
NaaS+
Joseph Watson
Checked.
Good stuff from these anons.
I think the best bet will be to park most of my LINK in a pool and then as mainnet releases and the network develops, to see how profitable and involved the personal node will be on VPS + EaaS.
Good times ahead frens:
youtu.be
Hunter Bailey
t. Tor Blair
Michael Cox
Technology is a J-curve bruh. The permitting factors for smart contract adoption (internet, protocol, use case, oracle, motivation) are all in place.
Lincoln Hall
whats the +
is that different to a normal LP NaaS?