The #Chainlink and SWIFT partnership and its potential impact on the tokenomics of $LINK. Thread 🧵 ⬇️
1) $LINK and SWIFT have been working together since 2016, largely in secret. SWIFT is the Society for Worldwide Interbank Financial Telecommunications. They’re the leader in financial messaging, with their network responsible for facilitating all international bank transfer info.
2) SWIFT facilitates close to $4-5 Quadrillion in transactions a year, yes with a Q. The entire TVL of DeFi is currently only ~$58 billion, much of which $LINK secures with its oracle network. If SWIFT integrates LINK into its payments network imagine the volume that LINK secures
3) SWIFT works with over 11,000 institutions, each of which would need to run its own $LINK node to process/verify these transactions. In order to ensure trustworthy data, nodes have to put up LINK tokens as collateral. That means they will have to buy LINK to run their nodes.
4) Not only will the nodes have to buy and put up $LINK as collateral, users of the network have to pay the nodes with LINK. The genius tokenomics of #Chainlink create immense organic buying pressure on the token which scales exponentially with the size of the network.
5) What does this mean?
Worst case scenario the partnership results in no end product and $LINK walks away with the respect and connections with 11,000 institutions/potential future partners that move trillions every year.
6) Best case scenario $LINK becomes the standard currency of the world. Sound crazy? Every institution around the world runs a node in order to use the SWIFT/LINK payments network. All buy and put up LINK as collateral. Everyone using the institutions pays them(nodes) in LINK...
7) The tokenomics add up. Working with institutions also minimizes risk of regulation unlike other crypto. The SWIFT partnership if successful would be the catalyst to bring $LINK to the top spot in crypto. The R/R of Chainlink is unlike any asset since #BTC in its infancy imo.
8) Whether the SWIFT partnership is successful or not, $LINK ‘s unique network effects, complimentary tokenomics, and strong institutional relationships ensure a bright future for the project and its stakeholders.
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Permissionless Interoperability is the freedom to bring interoperability features (such as bridging and interchain apps) to any blockchain, anytime.
@Hyperlane_xyz is pioneering this concept with the launch of Permissionless Deployments and out-of-the-box interoperability.
2/x
Permissionless Deployments enables anyone to bring the @Hyperlane_xyz interoperability stack to any chain without relying on the Hyperlane team to do it for them. No more begging bridge teams to deploy on your chain, you can deploy Hyperlane yourself permissionlessly.
3/x
Kinda disappointing that the only notable cross chain/interchain use case so far is bridging. There’s so much more we can be doing with interoperability layers.
Some other non-bridge interchain use cases I think are worth noting for future:
Interchain compute
Imagine being able to route computation to the cheapest blockchain, and settling back on the home chain near instantly. Effectively turn any blockchain into your layer 2. @Hyperlane_xyz’s point to point interop network makes this possible (in theory?)
Interchain zaps
One click transaction bundling across multiple chains
Collect deposits from any chain and stream to any chain.
Hyperlane is the interoperability protocol accelerating applications towards the Interchain. Sovereign Consensus is Hyperlane’s security layer that enables apps to permissionlessly customize their interchain security.
Many big words, wut mean? Spaceship metaphor to explain:
Imagine Hyperlane is a spaceship factory franchise with locations across every major star system.
An interchain interoperability protocol live across every major EVM with non-EVM deployments coming soon.