The Most Underrated Crypto Project

Faith in the global financial system will be restored through Encryption Technologies 

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Chainlink? 

In simple terms, the Chainlink network provides tamper-proof conflict-of-interest-free infrastructure in a cryptographically reliable way.
PoR - Proof of Reserve

• Publicly Proving you have the assets to cover the liabilities

• PoR incentivizes entities to act truthfully to maintain their reputation

• Removes friction from transactions (cheaper - faster - efficient)

• Allows traditional finance to access all blockchains (decentralized finance applications) with a single input

• Verify truth without revealing privacy data 
• The Need for Trust will increase as A.I generated deep fakes threatening gov/Social Stability 

By far, Chainlink is the most dominant Oracle network. It is a monopoly in the making whose use-case reaches outside of the crypto space. Within the Crypto space, Chainlink can't go away because of how widely used it is as the Oracle network. Basically, every single Defi project and almost every single chain utilizes Chainlink to fetch data. 

• Google is the Dominant Information network.
• Apple is the dominant Mobile network.
• Meta is the dominant Social network.
• Tesla is the dominant Electric vehicle network
• Amazon is the Dominnat Retail network 
• Chainlink is the Dominant Blockchain Oracle network

What is an Oracle?

Oracle Networks are used to bring real-world data into the blockchain ecosystem. This allows for smart contracts to execute the application function. 

• Oracle networks are decentralized, so their not controlled by a single entity.
• Tamper Proof, so the data can't be tamped with.
• Basically secure (tamper-proof), reliable (constantly being updated), and transparent (auditable)

The downside

• Cost: Using blockchain oracle networks can be expensive, especially for high-volume applications.
• Complexity: Blockchain oracle networks can be complex to set up and use.
• Regulation: The regulatory landscape for blockchain oracle networks is still evolving.

Data Manipulation

The conflict of interest problem has been something that the global financial system has had, as a part of it, for a very long time. This problem arises when individuals (Bernie Madoff) or institutions (FTX) are incentivized to manipulate the system for their own gain. This can lead to several negative consequences, including market crashes, financial crises, and the loss of investor confidence. 

• FTX scandal

• Terra Luna collapse
• The Libor Scandal
• Enron Scandal
• Archegos collapse
• Three Arrows Capital collapse
• Celsius collapse

The Chainlink Oracle Network solved this data and market manipulation issue by providing data that is truly reliable and resistant to data manipulation.

Proof of Reserve - PoR

Financial institutions are solvent, liquid, and "not over-leveraged" in real-time.

Even if you were a very big actor with a lot of money, even if you're a market maker or a hedge fund, you cannot go and manipulate the Chainlink data source in order to steal and extract value. 

SWIFT

​THE details of SWIFT & LINK​
SWIFT  (Society for worldwide interbank financial telecommunication) is partnering with Chainlink to solve remittance inefficiencies.​SWIFT is a global financial messaging network that enables financial institutions worldwide to securely exchange information & electronic messages about financial transactions. They Specialize in Remittance​Remittance: the transfer of money from one party to another. Think of all the money transfer services. 

• Moneygram: one of the oldest and most well-known money transfer companies. It has a network of over 500,000 agents in over 200 countries.​

• Western Union: another major money transfer company. It has a network of over 350,000 agents in over 200 countries.​
• Paypal and countless other services.

Cross Chain Interoperability - CCIP

• Removes friction from transactions (cheaper - faster - efficient)

• Allows traditional finance to access all blockchains (decentralized finance applications) through with a single input

 (cross-chain interoperability) aims to solve the following remittance inefficiencies

• High fees due to multiple banks being involved lead to multiple "haircuts"
• Long delays in delivery times: some transfers can take up to 5 days
• Exchange rate limitations can lead to higher fees and transfer limits
• Lack of transparency hurts the reputation
• Fraud is outright nasty

​To create a truly interoperable Web3 ecosystem, data and value needs to be able to move seamlessly between chains​

​Explaining CCIP in a thread

Tokenization

​Tokenizing Gold

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This is why Bank of America says Chainlink is the "likely driver of decentralized finance."  and former Google CEO, Eric Schmidt has come out of retirement to work with this project.

Big Tech & Chainlink

​How Amazon is using Chainlink​
How Google is using Chainlink
​How Intel is using Chainlink​
​How Oracle is using Chainlink​

Zero Knowledge Proof - ZKP

Validating truth without giving up dataDECO is a privacy-preserving oracle protocol. Using cryptographic techniques, it lets users prove facts about their web (TLS) sessions to oracles while hiding privacy-sensitive data. With DECO a user can, for instance, prove to an oracle that:

• She's over 18, according to her online U.S. State Department account...without revealing her account password or birthdate (or even her name!) to the oracle. 
• She's won a bet against another user in a smart contract...without revealing what the bet was. 
• She walked 10,000 steps a day for the past month according to the data on her fitness tracker website...without revealing any other health or personal data.

More Use cases

DeFi is a decentralized financial system that is built on top of blockchain technology. Chainlink is being used to provide tamper-proof and conflict-of-interest-free data to DeFi applications. This data is used to power a variety of financial services, including lending, borrowing, and trading.For example, Chainlink is being used by the Aave lending protocol to provide real-time price data for a variety of assets. This data is used to calculate the interest rates that borrowers pay and the yields that lenders earn.
Insurance
Chainlink is being used to provide tamper-proof and conflict-of-interest-free data to insurance applications. This data is used to assess risk and calculate premiums.For example, Chainlink is being used by Nexus Mutual to provide weather data for its crop insurance product. This data is used to calculate the risk of crop damage and the premiums that farmers pay.
Supply chain managementChainlink is being used to provide tamper-proof and conflict-of-interest-free data to supply chain management applications. This data is used to track the movement of goods and ensure that they are authentic.For example, Chainlink is being used by Walmart to track the freshness of its produce. This data is used to ensure that customers are only getting fresh produce.These are just a few examples of how Chainlink is being used to solve the conflict of interest problem in the global financial system. Chainlink is a powerful tool that can help to make the global financial system more secure, efficient, and transparent.

Defense Against AI

In the realm of nuclear weapons, uranium serves as the fuel that enables their devastating power. Similarly, in the domain of artificial intelligence, data acts as the fuel that powers AI systems and their capabilities. However, just as nuclear weapons pose risks if misused, AI weapons also have the potential to manipulate or disrupt economic and political systems. This is where smart contracts come into play:Fueling AIData, like uranium, is crucial for AI systems to function effectively. AI algorithms require diverse and quality data to learn, make predictions, and make informed decisions. However, without proper safeguards, AI systems can exploit data to manipulate or influence economic or political systems, leading to undesirable consequences.These types of Scandals will get worse when Bad actors are powered with AI
Risks of AI ManipulationAI has the potential to exploit biases in data, engage in misinformation campaigns, or manipulate decision-making processes in economic or political domains. This can result in unfair advantages, market distortions, or even the subversion of democratic processes. Similar to the risks associated with nuclear weapons, AI manipulation poses significant challenges that need to be addressed.AI-generated misinformation will increase in volume and magnitudeHere's a Fake image of Pentagon explosion

Smart contracts are self-executing contracts that contain predefined rules and conditions to govern transactions and interactions within a system. By leveraging smart contracts, economic or political systems can establish transparent and immutable rules that AI must adhere to.
Transparency and Accountability:Smart contracts can ensure transparency and accountability in AI systems. They can define clear rules for data usage, decision-making processes, and ethical considerations. With smart contracts, AI actions can be audited and traced, allowing for better oversight and ensuring that AI operates within the established boundaries of the system.
Mitigating Manipulation:By embedding smart contracts into economic or political systems, potential AI manipulations can be identified and prevented. The predefined rules encoded within the smart contracts act as a safeguard against unauthorized or malicious AI behavior, protecting the integrity and fairness of the system.
By defining the rules and constraints through smart contracts, we can aim to prevent AI from manipulating these systems, fostering trust and fairness in the age of AI.