Chainlink (LINK) Timely and Accurate Updates with Crypto-Economic Guarantees

Sergey Nazarov, Chainlink’s ability to provide timely and accurate updates through extreme network congestion is due to existing crypto-economic guarantees. The super-linear property of explicit staking is an even more scalable way to provide on-chain data in the timely way needed by all DeFi.

Chainlink Labs:  “The scheme we’ve decided and thus the term super-linear has some strong and I would even say counter-intuitive properties.  The most important of these is what we call super-linear staking impact. Specifically, we believe we have a practical design that gets us quadratic staking impact.

Let me explain what I mean by this. Imagine you’ve got an oracle network with, say, 10 nodes, and each of them stakes a million dollars. You would think that an adversary could bribe all 10 nodes and get them to emit an incorrect report with a total budget of just over 10 million dollars.

The idea is to pay each node just over a million dollars to lie in its next report 10 x 1 million is 10 million dollars, but in our staking mechanism design, an adversary would actually instead need 100 million. As I said, we get quadratic staking impact. That’s 10 squared times 1 million. And with a bigger network, it gets even better.

If there are, say, 35 nodes, an adversary would need not 35 million, but 35 squared times a million, which is a little over a billion. As I said, that is pretty counter-intuitive; it’s a result that surprised me, I think surprised all of us, and it has important implications. It means that can oracle network can achieve more economic security than there are deposited funds.

In other words, you get a real bang for your buck in terms of economic security. It also means that the bigger an oracle network gets, the more the cost of economic security drops. There is a strong economy of scale.”

Sergey also points to how enabling reforestation and the restoration of various ecologies around the world is just one application of hybrid smart contracts. Cryptographically guaranteed incentives to avoid pollution and actively restore our environment is what blockchains offer.

Users were wondering:  Even individuals could be given an incentive to help the environment, using real-time smart contracts to pay them after making a carbon-neutral decision.

About integrations, The Chainlink network powers an extensive collection of ready-made oracle networks that provide dApps with highly-secure market data. Integrate the TOMO/USD Chainlink Price Feed to fetch tamper-proof price data for TomoChainANN’s native token, already used by RampDefi.