So after some research, basically oracles are the bridge between web 2.0 and web 3.0(blockchain). Right?
Well, after looking around at web 2.0 API's and such, what would be the purpose of bridging those to web 3.0 if they work just fine on web 2.0? This is where I come to a block in the road in struggling to understand the value of oracles.
I think people are over-hyping oracles and I'm struggling to see the value. Can anyone explain why I'm wrong?
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>Can anyone explain why I'm wrong?
Or rather explain where the value in oracles is that everyone is screaming about? I don't see it.
Just yesterday on localbitcoins I was wishing there was a way I could just do a trade and get the money in my bank account automatically. The answer would be smart contracts, but they can't communicate with my bank. Oracles would fulfill this job, giving my bank and the smart contract all the info they need to process my transaction without having to trust or doubt anyone.
At least that's what I get from this whole deal.
So basically something you csn already do via coinbase.
Coinbase is directly linked to my bank account. The traders in localbitcoins are not, and I would never want them to be.
I will tell you why Chainlink is a scam:
1. They embed public API calls information directly into the Ethereum blockchain, meaning the storage cost of the data itself will be astronomical
2. There is no way to call any private APIs because your API key will be leaked due to the public nature of Ethereum
3. You are assuming that companies would be willing to pay a fee of 10 cents per call. (Which is entirely ridiculous, one of my apps runs nearly 100k api calls per day and I pay only 300 dollars/month)
4. You are assuming companies will pay 10 cents/call to receive "decentralized" data, such as prices of stocks, when they already own multimillion dollar contracts with companies specifically built to provide accurate data (plus you can get your money back if the data isn't accurate from a company, rather than having no one to answer for mistakes)
5. You assuming companies will wait 30+ seconds for an API call, which would place them at a disadvantage of any other competitor who is using a centralized system
It's clear to me that no LINK holders have experience actually using APIs or are in the corporate space, and I feel bad for them when they will get burned, kek
its hard to explain link because it can do so many things. ill try to say it this way. if we want that whole crypto world to be true and "muh adopted" there would have to exist a place where you can obtain data in a decentralized trustless way for that whole network to exist and be meaningful past just trading tokens around
>plebbit spacing
>if we want that whole crypto world to be true and "muh adopted" there would have to exist a place where you can obtain data in a decentralized trustless way for that whole network to exist and be meaningful
great counter argument faggot
Wrong. You have to have a trustless oracle for a smart contract
sorry i just wanted it to be easier to read
what if normans dont care about decentralized trustless data?
Couldn't he just trade the bitcoin to your bitcoin address on coinbase and then you could just withdraw?
I don't see how that gives any value to the bank, why would they allow you to communicate with them?
The way they provide data to the Blockchain is by accepting calls on a centralized API. So data requests to the Blockchain have to originate off-chain. Its solution is poor compared to what MOBI is planning for their initial implementation IMO. LINK implementation has a lot to be desired in my opinion. I agree with the people who say they're trying to do too much.
To expand on what I said, my personal issue with LINK is their API:
smartcontract.com
To buy data and create an Ethereum contract to use it, you need to go a centralized API. In practice, this means that even though the data retrieval is decentralized, the management of that data is completely centralized.
Mobius will be completely different. To request the data, it can originate from on-chain or off-chain. The API for requesting the data is also each individual node, which then propagates that request across the network. So even though Mobius will have a centralized FE which makes it easy for people to use it, it means that the requesting of the data and the management of it all, is completely decentralized.
Also keep in mind that the retrieval of data into Ethereum is just one aspect of Mobius, the aspect included in the initial implementation. There's also BTC/Hyperledger and what MOBI can do there, The BTC/Hyperledger functionality will be completely different to that, and creates a whole new aspect not yet seen in any other Oracle projects at all.
Can you explain the intrinsic value of an oracle in 1 or 2 sentences, like im a retard?
Sergey explains it well in one of his presentations. Basically, without distributed oracles, there is no point in doing things on a distributed smart contract because the data is still centralized and a point of failure. Chainlink wants to make distributed oracles possible.
youre not seeing the potential of smart contracts. chainlink doesnt give one fuck about normies, have you not noticed or read on how their team is radio silent? no hype, all work. heres another spoofeed. "muh we were never suppose to know about link" is actually true. I know your low IQ brain doesnt understand but chainlink is a business to business model. not business to consumer. that means chainlink is seeking out enterprise use, not your "muh adopted by normies" low IQ way of thinking. again, not a single normie needs to know about chainlink for the tokent to increase in value, do you even fucking understand that sentence? of course not, you probably didnt get past page one of the whitepaper. if you still dont fucking understand any of this, you still need to ask yourself why are so many autistic people are interested in this and how its survived this long on biz. wake up, stop being dumb, study until you understand it
>why would anyone want to cut admin costs by 90% using this technology?
>you
Distributed oracles are valuable, not simply oracles.
but how do enterprises get value out of it? Can you give a short example?
Normans don't matter. Corporations settling billion dollar contracts matter.
Distributed oracles enable the blockchain to be used.
Your question is what is the value of the blockchain.
how does an oracle cut admin costs? That seems like a fake thing
how do they create the value?
>what’re the advantages of the car over a horse?
>please spoonfeed me
so the value is them getting information to the blockchain? How would that make value if current systems work just fine?
How does a combine harvester increase profit on a farm? It's just an expensive machine.
you are a retard. oracles are almost useless they only matter in private settings, what you really want is decentralized oracles. a centralized oracle can be changed fraudulently, decentralized oracles make sure that data is right in a way, if the data if not right the node get penalized. you reddit faggots are the worst you guys are so fucking dumb "MUH NORMANS WHAT IF NORMANS DONT BUY DURR LOLZ" GO FUCK YOURSELF DO SOME FUCKING MUSHROOMS YOU PEICES OF SHIT
>horses work fine. Why would anyone want to switch to a car?
Please go read some business books
The entire point of a smart contract is it is secure and trust less. If a single oracle is providing the input for your contract that is a single point of failure/some random 3rd party that you have to trust to not fuck you which basically negates the whole point
I know I'm a fucking retard that's why I'm asking this shit you fucking retard.
That doesn't explain why it has actual value though that's what I cant understand. It just seems like "we can transfer shit from current internet to the blockchain". Why does that matter?
a more secure way of doing digital agreements meanwhile saving major costs and creating a new revenue stream from selling your data to smart contracts. EU legislators said all banking systems have to now be "open", swift took this new law that they hate and actually found a way to make money of this new hated law. chainlink. swift now makes money running nodes when you want to access their data.
Meant for
im trying to explain but you have to understand how difficult it is. you missed 2 years of research, it took some of us 2 fuckign years to understand this shit
Hmmm okay I'm kind of seeing more of the picture now. I don't understand why something like this as important as everyone here thinks it is though. It seems to have a very niche use-case
I get that, and I appreciate it dude.
>using muh car and horse analogy
it's not the same thing bro
>International finance, industry, logistics, derivatives, insurance, etc are all niche use-cases.
I think you’re trolling now.
Nobody can. It’s such an unimportant problem that the only ones attempting to solve it are led by a Russian philosophy major lmao
Currently the blockchain's adoption is very half hearted because the security and trustless nature of it is rendered useless because the origin of the data is centralized.
If I have a fantastically secure bank vault, impenetrable by nearly all means known to man, holding the potential future of all future industries during and post automation, it'd be worth a bit, right?
If all of that is rendered moot because I have to trust actors to go in and out the vault is beyond worthless, it's actually a liability. How do you ensure the actor is working in your and your shareholder's best interests? There is inherently more to gain for the actor to be dishonest. So you need to trust them, and trust here is not some euphemism. You need to take the measure of a man and what you know of him and trust him with your considerable assets and future.
Blockchain in a nutshell allows complete automation of our entire society. How do you conduct an interview for the role of the person trusted to hold the keys?
>Why would anyone use email or a fax machine when the USPS will deliver your letter for $0.5 in 3 days?
It’s not the analogy that’s the problem, it’s your brain.
Do we need all of that on the blockchain? Why would they want to switch from having ultimate control?
lol I mean they are giving me some decent answers but it just doesn't seem CRAZY important to solve this problem
your missing the point that smart contracts can disrupt ENTIRE INDUSTRIES but ONLY if smart contracts have a decentralized oracle. you sound like one of those people that still used the fax machine when the email came out. the link token works in such a way it represents the value of the network. the link token cannot be worth $1 if the value of contracts are greater then the "marketcap". i cant believe you dont see how important the oracle problem is
How does a distributed ledger create value?
Decentralization is the basis of its security and reliability.
You can trust your bank, which is a centralized ledger.
Bitcoin is decentralized, no banks or governments involved.
A centralized oracle involves trusting the oracle, just like centralized banking means trusting the bank.
Why do we need bitcoin and decentralized currency?
Once a decentralized oracle network exists, smart contracts can be created without relying on a trusted partner.
Basically you and me could load up a multimillion dollar derivatives contract between us without any banks or lawyers, and we could have an extremely high confidence in the distributed oracle network and ledger to properly execute it.
What the decentralized ledger is to bitcoin, the decentralized oracles are to smart contracts.
fucking kek'd
It's less complicated than the anons are making it out to be.
Right now, when you're dealing with contracts of varying sorts--Business/trade transactions, insurance claims, and so on--You require expensive administrative workers to handle the claims and process/vet each transaction to a "true" conclusion.
Smart contracts automate that and speed up the speed these dealings can be processed at. Right now, using the blockchain is the most secure solution for handling smartcontracts in an honest and secure fashion. Oracles are required to transfer real data to the blockchain.
>still using "muh it's the future bro" analogy
lol cmon man
see now that's a better way of describing the need for doracles.
Thanks guys just went all in RLC.
another aspect of chainlink that you need to understand is that it is the actual key for "muh adoption, since your so hung up on that reddit adoption shit. people dont want to fucking use cryptocurrency. they want to use money sorry. but how do you still use money but always utilize the benefits of a blockchain? chainlink. the outputs will always be in fait, but all the inner workings will be chainlink. chainlink is a middleware software. it can change that fiat to any blockchain currency and spit it out as fiat, all while utilized the benefits of the blockchain.
You failed to read my comment about reducing costs. Companies compete and will use any means necessary to increase their advantage over competitors. Of this enables companies to reduce costs by 90%, they’d be stupid not to. I use to think business school was a waste of time but you have now shown me why it matters.
I dunno i guess it's a scam oracles don't even exist sell now
im gunna start dropping infographs for these dumb redditfaggots, niggas straight up cant even read jesus christ
>why would anyone use gunpowder when the longbow is just as effective in dealing damage to game?
>why would anyone use armored panzer divisions when our cavalry units can move faster?
>why would anyone use the aéroplane when a train gets you from point a to point b just as safely?
C’mon bro is right.
heres an article supporting your words
afr.com
>Couldn't he just trade the bitcoin to your bitcoin address on coinbase and then you could just withdraw?
Localbitcoin has an escrow system, If I buy from a trader their bitcoins get locked and they have to confirm my payment to release them.
>I don't see how that gives any value to the bank, why would they allow you to communicate with them?
I don't know, because of the money flow? Oracle benefits? Ask someone smarter than me.
damn you were a troll this whole time, whatever hope some other reddit fags find my post useful somehow
>To buy data and create an Ethereum contract to use it, you need to go a centralized API. In practice, this means that even though the data retrieval is decentralized, the management of that data is completely centralized
I've brought this up in many threads and nobody can answer it. There is literally no point in decentralizing data retrieval from a centralised datastore. It is totally going around in circles.
>There is only 1 thermometer in the world
wait why am I trolling? I thought RLC was the oracle coin? I saw a lot of posts about it
Middleware is a huge industry. I’m knee deep with Mulesoft and Dell Boomi. Anytime we (corporation admins) can link systems and software together, it makes for a better user/client experience. If I want my app to connect to 5 other apps, middleware makes it easy to program, test and adapt to future changes.
I’ll take a stab at this...
Imagine an auto insurance policy (my industry) that micro transacts both credits and debits your bank account based on your driving behavior. Not at the policy term, instantaneously as a direct result of your behavior. Offchain would be the measurement device and your bank account, the policy and smart contract would live on the block chain. When input conditions are met as outlined in the smart contract, outputs are triggered. Chainlink is needed to connect these systems reliably and with certainty.
I did :3
If we all live in a giant fridge and its thermostat is controlled by one or two guys, what does it matter what our thermometers say?
If we all live in a giant fridge we are all theoretically made of cheese as well
So it would be like. If my Tesla got stolen, and I had data on the blockchain that said it was unlocked at the same time i had a charge in a restuarant also on the blockchain meaning i was negligent, my smart contract could be nulled meaning i dont get paid?
And the thing stopping people from stealing this data would be other blockchains? So it's like a multi key lock?
Oracles can tell the blockchain what things are, because the blockchain doesn't know what things are. When the blockchain can be told what things are, you can use the blockchain to move ownership of things from person to person at a fraction of the cost relative to how we do things now.
>keeping your cheese in the fridge
I guess kind of.
It is dotcom buble #2 - a new thing, thousand possibilities, 1000000 market players.. and most of them will die off.
Great explanation user
nice one here
these anons are making it too complicated. oracles are used to get external data onto the blockchain simple as that. that external data can be used to trigger smart contracts. the value comes from being able to streamline the execution of high value, deterministic agreements, think derivatives, insurance, escrow; things with very well defined "If this, Then that" logic.
love it. dropping a few bread crumbs for nulinkers, any redditors who haven't left yet are probably okay
>room temperature cheese
this.
Stop eating pleb cheese.
Newlinkers will fall for this lmao