The current problem with stable cryptocurrencies is that they rely upon trust in a central authority, usually an exchange. Examples would be Tether and Coinbase's USDC Now the problem with this is obvious. In Tether's case, it's all but certain to be a total scam.
They claim it's backed by USD but there's no way to verify this and it's pretty obviously bullshit, could collapse at any time. In the case of Coinbase Coin, that's more "legitimate" insofar as I'm sure they have some kind of transparency around that, it's auditable, etc, but it's not FDIC insured and if Coinbase got hacked or went bankrupt suddenly there's nothing backing the coin and you're fucked.
So the problem to be solved is ensuring stable value in a trustless way. We want some way of ensuring that there's a "close enough" 1 to 1 exchange rate of this stablecoin to a currency or currencies without relying on a central authority.
To do this, you create a token that relies upon a decentralized oracle service like ChainLink to algorithmically determine a stable "value" vs a major currency (e.g. USD) based on real life cost of relatively inelastically valued goods denoted in that currencies. And because you have immediate access to an immutable record of the value of those goods, you can then also correct for fluctuations in the value of certain things, account for variances in purchasing power in different areas that use reference fiat currency/currencies as a medium of exchange, etc.
Miners (or stakers, preferably, whenever someone figures out a working PoS implementation) could be given definite rewards in relation to this value. OR, maybe you can circumvent needless mining/staking energy altogether and simply compensate people for acting as nodes on the network, who rent computing power to oracles for data used to determine the value of the coin, then get paid back in an amount of the coin that remains "stable" w/r/t real world purchasing power.
Also since the computing power would be spent on non-trivial data transmission and calculations, you could do this on consumer hardware, like Monero. You wouldn't have to chase after ASIC-resistant meaningless problems-to-be-solved since the upkeep of the network itself requires constant computation of real time data.
The part I'm still trying to understand conceptually, and this is a gap in my current understanding of how decentralized oracles work, is ensuring that this stable value is guaranteed in some form. And the idea I have in my head is: the coin itself is connected to a currency exchange that uses ChainLink smart contracts as a gateway to fiat payment providers (Square, SWIFT, PayPal, whatever) but instead of putting in buy/sell orders at variable prices there's just a single, algorithmically defined, autonomously updating exchange rate.
An open question is whether this could be done in relation to multiple major currencies, or whether you would have one chain per currency, or whether the algo would be "just figure out how much to exchange for USD".
The idea here is that the currency does NOT become a speculative asset but instead is a truly reliable store of value AND medium of exchange.
Cooper Foster
Probably one of the smarter posts regarding chainlink. Bullish as fuck.
Jackson Hall
You do understand there is a new stablecoin based on stable purchasing power that will rely on chainlink data for the price of bread, gold etc. globally, right?
Imagine the ability to preserve purchasing power independent of the existence of a nation
Jordan Mitchell
What’s it called?
Michael Phillips
crypto oracle faggot is back at it
Landon Cook
Thanks man, but I am basically a brainlet when it comes to crypto including chainlink and the stablecoin landscape. This is just something I thought up at the gym, and I'm posting it here since people are generally pretty brutal so I want to know what the flaws are / where are the gaps in my thinking.
The interesting this about this is that if it's feasible, it is indeed bullish as fuck for LINK but the outcome itself would be a coin that would ideally never really raise or fall in value. Yet because it would 1) allow frictionless, secure, trustless, low-fee digital payments, 2) replace Monero as an adblock substitute (by browsing this website you consent to act as a stablelink node etc) 3) obviate Tether etc overnight, it could potentially revolutionize global finance and payments. (Again, waiting for people to explain why this is poorly thought out)
>You do understand there is a new stablecoin based on stable purchasing power that will rely on chainlink data for the price of bread, gold etc. globally, right? I don't, haven't even heard of this. Sounds pretty much like what I'm talking about. What's it called?
Xavier Clark
Now watch that leftist piece of shit cap his posts here and then post them on Twitter.
Jayden Clark
you don’t understand how any of this works, there is no way for a data feed from an oracle to force an uncollateralised stablecoin token to have value, there is no way to force someone to be the buyer of last resort if the market loses a purely faith-based peg.
the use of oracles in stablecoins is to provide a feed of the value of the collateral asset (i.e. $/ETH) to control the on-chain contracts governing collateralisation, token generation, and liquidation.
Chainlink can and probably will replace the current ad-hoc hand rolled oracle system used in MKR DAI, which is the admitted weak point of the system.
Mason Russell
btw, I was basically kinda ehh on chainlink before thinking this up and realizing holy shit this is a technology that *literally* could not exist without something like ChainLink.
and I know a lot of people don't care about this but I like the idea that this would basically solve the environmental problem with most cryptos overnight, since rewards would be allocated for the computing power needed to act as a node / ensure calculations and upkeep, not to like, solve some prime number long division puzzle.
even if this specific idea wouldn't work it's pretty cool that LINK enables things like this if just in theory.
Ryder Bell
I promise I'm not whoever you're referring to, I basically didn't post here at all until like three days ago when I started spamming REQ threads to make myself laugh. also this idea is probably retarded, I literally have not even read the whitepaper top to bottom
Josiah Gray
You guys can't be serious reserve.org and yes, they will be using chainlink
Cooper Diaz
>you don’t understand how any of this works, there is no way for a data feed from an oracle to force an uncollateralised stablecoin token to have value couldn't you write a non-link blockchain to make use of an oracle's data feed and enforce the constraints itself though? I'm not suggesting this involves changing the LINK protocol at all.
>Chainlink can and probably will replace the current ad-hoc hand rolled oracle system used in MKR DAI, which is the admitted weak point of the system.
yeah I was reading about MKR DAI, but I'm not suggesting this stablecoin peg itself to a specific fiat/crypto valuation. I guess one distinguishing feature here is you could define value in relation to purchasing power, correct for fluctuations etc.
so for example, you could have a coin that is not exactly 1 to 1 USD and fluctuates a bit, but it's stable "enough" by tracking roughly to USD / GBP / EUR in accordance to purchasing power metrics for those currencies, and corrects for events like GBP collapsing post-Brexit, petroleum getting really expensive in the Eurozone or whatever.
Hudson Sullivan
bro, i cant even understand what you wrote but i feel like i have to say this, you know how they say blockchain space is like the dot com bubble? well i think chainlink as if its windows operating system. you can build so many successful programs of off windows just like you can create amazing apps with link. i just dont have enough IQ to determine if rebuilding something with link is worth it. >link is the next windows 95
Mason Thompson
holy shit, this is EXACTLY what I had in mind if I'm understanding the overview correctly.
including the idea (which I didnt state in the OP) that you would basically have to roll this out in phases because wider adoption would necessarily mean that USD/EUR/GBP would be a weird meta-metric (assuming the currency actually took off).
really cool. and yeah this is pretty bullish for LINK i have to say.
Charles Garcia
my one immediate criticism of Reserve is that they need to change the name. i want to read threads where this has been discussed but its too hard to search for
Caleb Garcia
Apparently this is coinbases long term baby Gotta hand it to the normiest exchange for figuring out you can either play the bank game and compete or you can play the central bank game and look down on the coliseum
Evan Perez
you need to understand the difference between collateralisation and pegging. yes, sure, using oracles you can make stablecoins pegged to whatever baskets of currencies or commodities you like, but this is a totally different issue from how the peg itself is maintained and why the holders and users of the token can reliably expect it to be maintained even during crises of market confidence.
backing by promissory conversion of IRL assets is one solution to this which involves trusting a real-world party; backing by on-chain cryptoasset collateral is another, which does not, and also gives more freedom of choice of peg.
Nathan Lopez
What's their business model though? Like right away my assumption was "this idea was cool but it can't moon". But there must be some pretty strong profit expectations with a VC basket like that
I guess if it's a Coinbase project the model could just be "Coinbase / crypto ecosystem long term health, plus we own a bunch of the initial supply"
Hudson Nelson
my understanding is that collateralization = at the end of the day we can pay for this in x amount of ETH, pegging = the coin is designed to be valued at {{value}}, but that metric can be arrived at in any number of ways. right?
im suggesting only pegging, by that definition, zero collateralization (and since it's totally decentralized you can't collateralization bc there's no central authority)
Gavin Thomas
Honesty time If you can't understand how issuing an asset tied to a basket of real world assets with a positive projected future valuation then you need to be reading. a lot You are competing against me. Every bit of knowledge someone like me has that you dont is money you lose and I win. Dont be a sucker
David Martinez
Yeah that's why I'm on an public forum asking questions dumbass
Nathaniel Parker
Here is not the place to get educated Here is 99% scams and 1% gold Asking questions here and trusting the answers is suicide Read
Angel Roberts
You're advising me to "read more" in a thread where you concede that I have correctly deduced the potential of a coin that gets shilled on here nonstop (by reading about it) and you are now answering my questions about it on demand. Not sure what the takeaway is supposed to be here.
Jacob Edwards
Reserve, their whitepaper mentions chainlink
Samuel Mitchell
You don't understand how issuing a stablecoin based off of a basket of real world assets would be profitable Clearly you lack some fundamentals Read
Jack Myers
I think it is possible for banks to use a gateway (via Chainlink or other decentralized oracle) to issue on chain tokens that represent a direct dollar conversion. No collateralization, no tricky economics or incentive mechanism, just the assurance that the onchain token is highly secure and impossible to counterfeit. It would demand that banks have an interest is getting involved with decentralized networks and would always honor a bank transfer on and off chain with the assurance that the token is representing an honest to god dollar. Maybe it's farfetched, but I think that's the end game with stable currencies- institutions promising their value. Not "decentralized" enough for you? Then don't use stablecoins to begin with because by their very nature they latch on to traditional centralized finance in order to behave the way they do
Joseph Carter
that does not require an oracle. what would the oracle even be supplying? if the bank is the trusted party for redemptions then they can also be trusted to control issuance directly via ownership of the token contract.
OP, read some stablecoin whitepapers, particularly Reserve, as suggested above. come back when you understand the term ‘buyer of last resort’.
Charles Campbell
t. nopants
Eli Rogers
Thanks just bought 100k
Isaac Brown
oracle provides the middleware infrastructure. banks could build proprietary middleware to interface with the blockchain or use an existing standard. Seems like a nobrainer to go with an existing standard
Asher Gomez
reserve is creating a stable coin using Chainlink.
Most stable coins will eventually use Chainlink. Its only a matter of time.
>Chainlink powered stable coin Ok, but who is going to pay for this shit? A decentralized, trustless network of oracles isn't free.
Connor Brown
probably the same way current stable coins pay for their operation
Brandon Rodriguez
Where should I be reading about Link after the whitepaper? I want to have pretty high level fluency with this project as I will likely be going all in.
I've spent more hours on this site than you nigger, which is why I have not trusted this russian shitcoin until recently.
Christian Thompson
I don't get this attitude, wtf do so many have a problem with newbies understanding and wanting to invest in something you obviously invested in and you want to succeed?
Hunter Davis
anons are supposed to figure things out for themselves. this has been discussed endlessly and is available in the archive. he can't bother reading the archives or doing anything but ask for the spoon. spoons closed.
Carson Green
I will admit I don't get some of what is discussed in threads like this, but what I do get is the stack I invested in is going to be very profitable in the future.
Luis Harris
WE ROTHSCHILDS NOW
>Jow Forums pranks 2006, take over Habbo Hotel >Jow Forums pranks 2016, elect Donald Trump and take over USA >Jow Forums pranks 2026, take over Illuminati and globalist central banking cabal and control the world
I am asking for primary source reading material on Link not some 20 year old faggot on Jow Forums's botched summary of said material
Liam Roberts
Thanks OP I've wondered for years exactly how a CL based stable coin would work
Julian Ortiz
Sorry but this is a retarded idea. There’s already algorithmically backed stanbelcoins. Backing one with the chainlink oracle network is pointless, and the kind of scammy retarded idea that crashed the ICO market in the first place.
Daniel Cox
Fucking disgusting newfags, newlinkers, and nolinkers finally starting to question their idiocy make me sick.
Literally two seconds on google and you’ll find articles about Chainlink in Forbes, MIT Technology Review, reports on CNBC, hours and hours of talks on YouTube... warosu has over a YEAR of serious in depth discussion about everything to do with Chainlink, dissecting every last detail... there are thousands words long Medium and blog posts explaining Chainlink from start to finish... And you want to be spoonfed a personal reply, tailored just for you? Typed out for you, personally? Um no sweetie. There’s a reason you got zero decent replies and that’s because we refuse to spoonfeed newlinkers who are too lazy to type into google. We spent a year researching this shit every single day and holding even through painful dumps to 20c. And you show up demanding info? Can you see why no one wants to give it to you easy?
You have to have gone through this experience, the months and months of reading and searching and learning, to truly understand, and to get to the point where you know it inside and out and will never sell. If someone types you a few lines, you’ll read them, you may buy some LINK, but you’ll just sell sooner or later for whatever reason because you didn’t really KNOW anything. So it’s pointless to explain it to you anyway
>REMINDER: Do not spoonfeed the newlinkers - the ones who make low effort posts demanding tailored research just for their little pathetic low IQ queries. Why not? Well, 1) They don't deserve it. and 2) They wouldn't understand anyway.
I have an idea of how to "store" any crypto so that when you withdraw it you get back the $ value it was when you put it in. This requires chainlinks's decentralised oracle system. Basically people going long and short etc. I'll make a thread later.
Oliver Baker
It's been discussed a little bit. I don't think anyone has really expounded upon his importance in the ecosystem and why it's a big deal. Seems like he's quite competent though.
Brayden Rivera
Ampleforth as well
Luke Evans
They can never stop us because we're decentralized
We hate each other exactly as much as we hate everything/everyone else and we attack each other when we use the word "we"
Ryan Parker
reserve is a big deal but it's already forgotten among the many other big name projects building with chainlink behind the scenes
why the fuck would i try to sell the coin to other people? the coin isn't meant for us you dumb phaggot. the more people who know about link right now the less link we can accumulate for ourselves. use your pea-sized brain and think about that
