/biz/ - Business & Finance

To perform extremely high value exchanges (like trading derivatives), banks currently have to make use of what is called a Central Counterparty Clearing House, or CCP.
The CCP is a third party which acts as a middleman between the banks, and reduces the risk of one of the banks not following through with their contractual obligations. One of the ways that this risk is ameliorated is the CCP holds a "default fund", or DF. The default fund is a pool of money that every bank that uses the CCP pays into. If two banks enter into an agreement and one of the banks fails to follow through, the bank that would lose out is paid out from the DF. It is essentially a way for all the banks using the CCP to have a sort of group insurance. When a bank is paid out by the DF, it is the responsibility of all of the banks in the group to top the DF back up. Given the value of the contracts that are being exchanged through this process, DFs likely hold billions if not tens of billions worldwide.

The use of smart contracts to administer derivatives trades completely removes the need for a default fund. As the DF constitutes a type of counterparty insurance (insurance against the fact you can't guarantee that the other party will perform their side of the trade honestly), the removal of counterparty risks through smart contracts means that ALL of the money that is currently being held in default funds can be liberated back to the banks who are currently paying into them. As mentioned above, this constitutes billions if not tens of billions in savings that will instantly be returned to the banks.
This is just one of the benefits of a smart contract based derivatives system, many more are laid out in the recent Chainlink blog post, but it is a striking example of how strong the incentives will be to adopt a smart contract system as quickly as possible, and how competitively disadvantageous it will be to lag in adopting this technology.

The power of the universe is congregating in this project and in this place.

I believe in an omniscient, omnipotent, omnipresent God - Gematria 20022

>>15669483

this fucking rules kek

>>15203645
>wah wah wah devs aren't allowed to sell the tokens that were literally allocated to be sold to expand the project, right after announcing that they were expanding the project
sell your remaining 11k and watch from the sidelines, grandpa, it will be fun watching you miss out.

Blessed this thread.. kek

>>13640577
>>13640588
>>13640599
>>13640666
>>13640777
>>13640800
>>13640822
>>13640844
>>13640911
>>13640966
HOLY FUCK CHECKED

>tfw you have held since ICO and are in a permanent zen state

where can I find an invite for the chainlink discord?

>>11586566
kek'd and check'd. Enigma niggers btfo'd. Project is obsolete when chainlink goes mainnet parabolic in price and users. Eniggers are done for.

Whos going to be buying my Linkys for $1000? I want to start laughing at them now.

>>11539626
Praise Sergey.
You will make it within 9 months.

Anybody here use this? I'm interested in pissing away some money doing compulsive gambling over pointless topics like a degenerate but not sure if augur is any good

I have 33k LINKs, should I go all-in and get 20k more? I'm 19 so this means my life savings. Trips decide the future of my life. Quads decide on my virginity

Everything will be OK.

"regulatory hurdles" a.k.a divine Sergey appearing in a vision before their eyes and threatening them with doom.

>>10900568
10/10

>>10888111
>>10889999
>>10890766
Well it's settled. Anyone with 17k LINK will make it, and will make it pretty soon.

>>10795583
$1 EOM

>>10752965
welcome brother

>>10621395
very rare. saved.