⚡️: 5 First Impressions from my Chainlink Rabbit Hole
1. @chainlink is NOT an "oracle"
• An ecosystem of thousands of decentralized computing networks
• Enables the creation of validator sets that handle a single specific offchain computation in a trustless and verifiable way
>> Do one thing and make sure its 100% accurate at all times using a network of nodes
• Decentralized Computing Marketplace launching soon. Anyone can launch their own Chainlink network and customize services, node requirements, data sources, multisig, security parameters etc
2. Oracles are not just for market data
• Fetching price data is the most widely use service, but it's the tip of the iceberg
• Oracles excels at everything blockchains cannot do or are inefficient at doing
• Other important, but overlooked functions include cross chain messaging & interoperability, two-way connections between smart contracts and external offchain systems, security, and much more
• Enables service oriented architecture for web3, i.e. modular decentralized web services, which is how most modern web applications are built
• Oracle networks can be combined to create new calculations, workflows, dApps, and protocols
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3. CCIP's biggest breakthrough is enabling the transmission of information and value simultaneously
• Delay between txn initiation and settlement caused by data fragmentation and inefficient, bureaucratic workflows
>> You pay for asset, bank checks data, data verified, sends payment to other bank, other bank checks data, receives payment, releases asset, you receive asset (can take up to a few days)
• With Chainlink, data is fetched and verified simultaneously when txn is initiated. Data + value is transmitted by CCIP
>> Data of the asset (e.g. price, origin, proof of reserves) is available in real time
>> Data required for the transaction to be executed (e.g. KYC / AML, investor accreditation)
>> Stablecoins
• Programmable workflows enabled by the co-existence of value and data. Vastly improves standardization, automation, composability
4. AFAIK, CCIP is the most robust interoperability solution for bridging TradFi and DeFi
• SWIFT x CCIP experiment was well founded and included all the necessary parties (banks, CSDs, messaging networks), incl. Citi, BNY Mellon, Euroclear, Clearstream
• CCIP enables bidirectional information and value abstraction and transfer between all other private and public blockchains
• Minimizes the need for banks to incur additional costs to upgrade, train employees, or replace legacy systems
• Banks actually prefer fragmented backends (e.g. private blockchains), but connected markets and liquidity
• CCIP offers a plug and play interoperability protocol that allows for both, making it the easy, obvious choice for banks
5. Quadrillions
• Chainlink thesis: Banks will tokenize everything to profit-maxx
• Chainlink game plan: Get public (DeFi) and private (banks) sectors on the same operability standard - CCIP
• Once banks decide to connect their systems and blockchains with public blockchains, CCIP will facilitate quadrillions of dollars of liquidity flowing between TradFi and DeFi
I'm having a ton of fun researching $LINK and CCIP. Can't shake this feeling of "something big is coming"
Gonna do a deep dive next. Shill me anything that you think I should read or look into
Thanks in advance 🫡
@chainlink Taggin some link marines for feedback
@chainlinkgod
@chainlinkbull
@sergeynazarov
@chainlink
@0xswish
@drakelinked
@thelinkmarine1
@rendoshi1
@catfishfishy
@sealgoodman
@rohanjt
@nullpackets
@chainlinkpapi_
@poopmandefi
@ChainlinkToday
@thecryptokang