By establishing #Chainlink as the industry standard oracle solution today in the early stages of smart contract adoption…
The revenue opportunities at peak adoption become massive, where it’s well acknowledged that Chainlink is a requirement to make your use case possible
This can only be achieved by focusing on adoption growth via user acquisition in the early days
The initial costs of fueling growth isn’t free, but if successful, will pay for itself many times over
Fund growth -> Establish position today -> Monetize industry growth
But this needs to be taken with a realistic approach
The goals need to be set clearly with a practical ten year game plan to sustain growth
Just giving people tokens for contributing little to nothing attracts just mercenary capital, capital must reinforce a moat
Unfortunately, crypto has largely skewed people’s timeline focus due to unsustainable yield programs made possible by printing tokens with little thought
Projects taking a realistic approach to growth are misunderstood as a result and are discounted
How many of the cryptos in the top 100 will still be relevant in the coming decades?
Short term meta games can be fun, but ultimately I’m interested in what has the greatest growth and value capture potential with a realistic approach of achieving that
When it comes to the Chainlink, the future revenue potential is immense across multiple domains
Real-world data
Off-chain compute
Cross-chain interoperability
Blockchain abstraction layer
All pushing the ecosystem forward and earning revenue from the ecosystem’s success
Network effects are already being achieved including an economies of scale (greater adoption lowers costs for users) and the horizontal integration of services (integrating one services leads to integrating more)
The demand for Chainlink services across chains is immense
As the revenue of Chainlinked dApps increase and more dApps become Chainlinked, more revenue flows to the Chainlink network
The total addressable market here is the global system of contracts (aka the world economy)
Hence why the staking of $LINK is a such a crucial part of the system
The native asset of the network evolves to become the right to gain access to this growing revenue by helping secure the network
The fuel of the oracle economy
But to reiterate the core point, the ability to earn massive revenue from the global adoption of smart contracts is only possible if you become standardized *today*
If you don’t strategically invest in growth today with sustainable goals, you’ll miss this opportunity entirely
The point of crypto is not to give people money to increase your TVL in the short term
It’s to create a more trust-minimized, transparent, and equitable system of contract for the world
That’s where the real long term revenue opportunities lie
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When a new chain is launched, the most common promotion is that they’re faster and cheaper than Ethereum
The issue is that they start with an empty state tree, which is then compared to Ethereum, which has a massive 6+ year old state tree (100GB+)
Don’t fall for the fallacy
A larger state tree means reading / witting to state takes longer and is more computationally expensive
When your state tree is empty, ofc it’s going to be cheaper than Ethereum, the real test is how it compares once it reaches the same level as Ethereum
Not to mention the fact that many new chains usually have a larger block size / faster block time (i.e. higher gas/second)
Meaning all else equal, the hardware requirements (at the same state tree size and tx demand as Ethereum) is higher and therefore affecting decentralization
Censorship-resistance is one of the key properties behind crypto that grants anyone in the world to transact freely
This can range from dictators to human right activists
A tool of freedom is a instrument that can be used for good or for evil, no different than the internet
Illicit activity made up less than 0.15% of crypto transaction volume in 2021 (Chainanalysis)
Yet even so, crypto will be defamed as just a way to evade sanctions and trigger calls for greater privacy invasive KYC measures
The road to hell is paved with good intentions
Attempting to introduce censorship as an ingrained property of the system as a way to block bad actors will have unintended consequences of also blocking those who utilize crypto as a way to survive when their traditional finance and monetary system collapses
1/ #Chainlink VRF v2 is now live on mainnet, serving as an upgrade for the ecosystem’s most widely adopted verifiable randomness solution
The result? Five significant improvements in cost-efficiency and configurability
Let’s break it down 🧵👇
2/ For context, Chainlink Verifiable Random Function (VRF) is a secure random number generator (RNG) purpose-built for smart contract applications
Each RNG value is backed by a cryptographic proof that is verified on-chain, preventing manipulation from oracles, users, and miners
3/ Since its release, Chainlink VRF v1 has fulfilled over 3M requests for randomness and now serves over 2,300 smart contracts across multiple blockchains
"Fair election is important for DAOs. However, the most developed system, Quadratic Voting, is exposed to the Sybil attack. We developed Governor C which is Sybil resistant QV based on Chainlink-VRF." devpost.com/software/gover…
Oracle Data Feeds on zkRollups are a complete game changer economics wise
A Data Feed with hundreds of nodes posting thousands of updates per batch has the same L1 gas cost footprint as a price feed with 1 node posting 1 update per batch
How?
zkRollups like @dydxprotocol don't post the raw tx data on-chain, rather they post compressed state diffs (state differences from batch n and batch n+1)
A Data Feed is an on-chain reference contract with a variable that holds an aggregated value that's updated by oracles
So no matter how many oracle nodes or updates there are, there will only ever be at most 1 state diff per batch for a Data Feed, since updates always touch the same state variable
Signature verification and data aggregation is succinctly proven within the validity proof