Thread by @ethsedys

On @chainlink, @ericschmidt, @Google, AI and the network effect.
A not so short thread (n/31)👇🧵

1/ First things first, two facts: we know former Google CEO Eric Schmidt joined Chainlink Labs @Smart_Contract as a strategic advisor; and #CCIP is due to be released this year, arguably Q1-Q2.

https://twitter.com/chainlink/status/1468249334537990156?s=20

2/ We also know that #CCIP will completely transform the crypto space: we will transition from a world of enclosed blockchains, to a new cross-chain fully interoperable space, where dApps can seamlessly leverage the key aspects of every chain.

chain.link/cross-chain

3/ In this new multi-chain ecosystem, bridges/middleware will capture more value than L1s. @chainlink == Layer 0.

4/ There are mainly two known kind of bridges in the blockchain space: those front-end bridges (such as Avax Bridge) operated by users, and bridges that will be integrated on the backend of the DeFi dApps themselves.

bridge.avax.network

5/ As for the latter, which will secure billions in value, introducing a third-party solution into their protocols is a massive security risk. They will integrate a solution they are already confident in and familiar with. $LINK

6/ This is where Chainlink's massive network effect comes in. @chainlink is already used by +1000 leading dApps and already secures about 100 billions across all the leading blockchains.

7/ Adding #CCIP support will be as simple as adding a few lines of code. And because #CCIP itself isn't a bridge but a framework for easy bridge building, many #CCIP-based bridges will pop up. Some of these bridges will be retail-facing frontends.

8/ Whether these bridges will capture value via $LINK token payment or abstracted away via a percentage fee model, this value will eventually flow to the $LINK token holders via staking (confirmed to be launched in 2022).

https://twitter.com/ethsedys/status/1477780302684639234?s=20

9/ That’s why people like @Google former CEO @ericschmidt joined Chainlink as an advisor: he envisions the potential value that the @chainlink network could capture in the coming years.
Short story of Schmidt’s path at Google:

10/ When @Google founders Larry Page and Sergey Brin first interviewed Schmidt, they were very impressed by him, so they recruited Schmidt to run their company in 2001 under the guidance of venture capitalists @johndoerr and Michael Moritz.

11/ In March 2001, @ericschmidt joined Google's board of directors as chair, and became the company's CEO in August 2001. At @Google, Schmidt shared responsibility for Google's daily operations with founders Page and Brin.

12/ Prior to the @Google initial public offering, Schmidt had responsibilities typically assigned to the CEO of a public company and focused on the management of the vice presidents and the sales organization.

13/ According to @Google, Schmidt's job responsibilities included “building the corporate infrastructure needed to maintain Google's rapid growth as a company and on ensuring that quality remains high while the product development cycle times are kept to a minimum.”

14/ As Google's chief executive officer from 2001 to 2011, Schmidt grew the company from an early Silicon Valley startup to arguably the most important technology company on the planet.

15/ Under his leadership, Google dramatically scaled its infrastructure, conducted a successful $23B IPO, launched popular product offerings like @gmail, @googlemaps, @googlechrome, and acquired key technologies and services like @YouTube and @Android.

abc.xyz/investor/found…

16/ Additionally, Schmidt served as Chairman of Google until 2015, and in March 2016 it was announced that Schmidt would chair a new advisory board for the Department of Defense, titled the Defense Innovation Advisory Board.

innovation.defense.gov

17/ The advisory board serves as a forum connecting mainstays in the technology sector with those in the Pentagon. He is also Chairman of the National Security Commission on Artificial Intelligence.
nscai.gov/commissioners/…

18/ He has additionally served on the boards of major companies such as Alphabet, @Apple, @Princeton, @CarnegieMellon and the @MayoClinic.

19/ Talking about AI, recently Eric Schmidt published “The Age of AI: And Our Human Future” together with former Secretary of State and Nobel Peace Prize Henry Kissinger and Daniel Huttenlocher who served as founding dean and vice provost of Cornell Tech.
ageofaibook.com

20/ In this book, @ericschmidt and his coauthors, analyze how AI is shaping the world we’re living and how it could possibly transform society, economy and life.

21/ In a section of the book entitled “Understanding Network Platforms”, authors describe the mechanics that rule network platforms and the meaning of positive network effect.

22/ In particular, they highlight how “one of the defining characteristics of a network platform is that the more people it serves, the more useful and desirable it becomes to users” #MetacalfeLaw

23/ Additionally, AI is becoming increasingly important to network platforms that aim to deliver their services at scale. Thus, nearly every internet user encounters AI during his job/freetime on a daily basis.

24/ For example, @Meta developed an AI-based system that removes inappropriate content and fake accounts. In the same way, @Google implemented machine learning in order to be able to anticipate questions and organize accurate results.(fairly disputable).

fortune.com/2020/03/04/fac…

25/ The size of their network platforms has reached a scale so that these kind of tasks shouldn’t be possible without the intervention of an Artificial Intelligence.

26/ The potential of each major network platform and AI on society, economics and politics is considerably augmented by the degree of its positive network effects.

27/ “Positive network effects occur for information-exchange activities in which the value rises with the number of participants. When the value rises in this manner, success tends to produce further success and a greater likelihood of eventual predominance.” $LINK

28/ Eric Schmidt knows well how positive network effect works. With his great experience and expertise on running business like @Google, he will empower and help @chainlink scaling its infrastructure by leveraging AI technologies.

29/ Scalability is the key for any business model. When demand grows, product/services have to adapt to new a new user base, which can increase by several orders of magnitude. In the meantime, quality and affordability have to be kept at the highest standard.

30/ Quote by @ericschmidt when announced his advisor role: “Chainlink is a secret ingredient to unlocking the potential of smart contract platforms and revolutionizing business and society. I am excited to be helping the Chainlink Labs team build a world powered by truth.”

31/ Hope you understood who @ericschmidt is and what he can bring to the Chainlink Ecosystem. And remember, @chainlink doesn't play to be second best. People like Eric Schmidt do not associate themselves with the second best. You just win $LINK

🔚

🥫Sauces:

boards.4channel.org/biz/thread/450…
boards.4channel.org/biz/thread/449…
littlebrown.com/titles/henry-a…
chainlinktoday.com/former-google-…