Tellor Tributes
Tellor token is an Oracle protocol that facilitates the retrieval of data from blockchain outliers. As blockchains operate in silos, off-chain data requires a tool, such as an oracle, to retrieve valuable data from third parties. The Tellor protocol provides incentives for network data aggregators. The data may be validated and checked by any network participant. Centralized data addition can be prone to attacks and manipulation. Tellor wants to keep a platform that is truly decentralized in terms of data reporting and verification by a network of users.
The Tellor system was started in 2019 by Michael Zemrose and Brenda Loya. Based in the U.S., the project was made to solve the problems that oracles usually have, such as slow speeds and high costs for off-chain data feeds. Loya had gained extensive experience in data science and blockchain prior to the project's launch. She is currently the CEO of Tellor. Loya and Zemrose made another project called Daxia, which is available on the Ethereum network. The Daxia project provides a contract protocol for derivatives.
False reporting is one of the biggest problems Tellor wants to solve. Due to the immutability of many blockchain networks, incorrectly reported data can result in a ripple effect. These issues are a result of the fact that early oracles operated uniquely. This single point of failure compromised the entire network's performance.
Tellor utilizes a decentralized structure to confirm that all oracle data is accurate. The system uses a multi-layered verification system and incentives to make sure that all oracles only give trusted, real-world, off-chain information. In this manner, Tellor offers the blockchain economy a secure network of oracle data reporters.
Hybrid Proof of Work/ Proof of Stake Consensus - Tellor relies on a hybrid proof of work/proof of stake consensus mechanism that is fully decentralized and requires members to solve mathematical puzzles to ensure the security of the network. While PoW consensus mechanisms do not permit staking, Tellor has modified theirs to do so.
Security - The platform's security is managed by Tellor's architecture, which utilizes a bond/dispute mechanism to ensure the accuracy of mathematical values stated. The security of this network as a whole depends a lot on the staked miners, who are in charge of responding to off-chain data requests.
Governance - The governance system of Tellor focuses on resolving disputes and challenges. This system is also used when the Tellor platform needs to vote on new features or improvements. For instance, a change to the monetary policy is only possible after a vote has been conducted.
TRB tokens can be used for a variety of purposes on the platform.
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Payment: Users submit their TRB tokens in exchange for the data they require.
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Mining: Miners need to send 1,000 TRB tokens to the Tellor network to take part in the mining process.
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Rewards: When miners solve the equation, they get TRB tokens as a reward. The Tellor team also gets 10% of the reward from mining.
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Dispute Compensation: TRB tokens are also used to pay community members who report suspicious submissions.
DATE NEWS/EVENTS IMPACT 30/08/2022 Tellor Oracle Protocol's FUD plummeted the TRB Token Price -46% Decrease 07/05/2021 Coinbase lists TRB token +31% Increase 25/08/2020 Linear Finance partners with Tellor to develop scalable and decentralized Ethereum Oracles +80% Increase
Tellor solves the oracle issue by addressing the speed and cost of utilizing oracles to connect off-chain data to smart contracts. Network participants are rewarded for providing accurate information, which makes Tellor an even better project.
As the popularity of DeFi dApps increases, projects such as Tellor that have a useful use case, such as oracle software, may have a promising future.
