Warning: Do not hold Chainlink long term

While there are certainly profits to be made by trading Chainlink, there are warnings to not HODL it with the hope that one day developers will adopt it as their source for decentralized oracles – That certainly won’t happen. The app developer looked over the Chainlink white paper and documentation, here is what he found: 

  1. The current “mainnet” is not decentralized. There’s no way to assess if an oracle is any good or not decentrally.
  2. It took them two years to build centralized oracles, which is extremely unimpressive (and already exists). I do not have much hope for the future or the competency of their engineers.
  3. The white paper doesn’t coherently describe how they plan on making their centralized design decentralized one day. They broadly go over their “decentralized” reputation strategies as if creating Sybil resistant decentralized reputation is something of an afterthought when it’s actually an unsolved computer science problem. They’ve had 2-3 years and 30mil in funding to actually publish technical specifications for this, and instead, they decided to build trivial centralized oracles. Extremely worrying. It kind of reminds me of IOTA “we’ll remove the coordinator later”. No, you won’t. You don’t know-how.
  4. News outlets and journalists keep reporting on “partnerships” with Google and Swift. But if you actually read the source for the “partnership”, it’s just a blog post by Google Cloud that promotes their own service (BigQuery) and shows an example about how Chainlink users can use Google Cloud if they want. In no way is Google partnered or planning on using Chainlink themselves. The Chainlink codebase is extremely trivial to rebuild if Google wanted to get into the blockchain oracle space.


What do you think?

16 points
Upvote Downvote