Chainlink Node

[stevegee1]

For a hybrid smart contract, we need an Oracle such as Chainlink. This Chainlink oracle uses nodes to maintain decentralization and security. My question is, how does chainlink, in details, incentivized its nodes?

[gmluqa]

Prefacing this by saying I'm not expert whatsoever.

So far, practical examples throughout the course that I've experienced of interacting with chainlink services (vrf, keepers) have needed a LINK token payment in order to function. In order to generate random numbers, link had to be paid, and to make a keeper enabled contract work, link had to be kept on an account and paid out. The nodes are basically incentivized by the payment of the LINK token for their services, eth nodes take eth for computation, link nodes take link for computation. I am then assuming that on a mainnet this link will go to all the link node operators involved.

[stevegee1]

Thanks for your contributed quota @gmluqa .
Looking forward to your answers as well. Thanks @PatrickAlphaC

[PatrickAlphaC]

Great questions, and I LOVE your logo! You can check the chainlink docs for more info: https://docs.chain.link/docs/off-chain-reporting/

But basically, there isn't an algorithm. Nodes form something called a DON (decentralized oracle network) and you can make price requests to that DON. You can also specify which nodes should perform your request (essentially creating your own DON). Since DONs are transparent, it's easy to see if nodes are acting malicious to be voted off of work.

Nodes are paid with LINK.

With data feeds, many protocols (aave, synthetix, etc) pay the DONs to keep providing them data.

[stevegee1]

Thanks @PatrickAlphaC ... compliment coming from a mentor haha. I am a fan! And thanks for the prompt reply

[stevegee1]

Does the weight of their(Nodes) stake(POS) affect their selection to fulfil request(s) in any way? @PatrickAlphaC

[PatrickAlphaC]

Staking is not live yet, so no

[stevegee1]

Wow! The link helped. Thanks