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Tellor (TRB) is a decentralized oracle network that enables regular users to earn rewards for participation. The system introduces an incentivization mechanism and custom cryptocurrency to accomplish this task. Tellor is one of the top oracle networks in the market at this time.
Oracles are off-chain sensors that have the ability to interact with blockchain networks. These sensors play a vital role in the decentralized economy because they enable blockchains to interact with other networks in a seamless manner. The rise of DeFi (decentralized finance) has driven the demand for these services even higher.
Today, there are oracles in use for all types of purposes. DEXs (decentralized exchanges) rely on these sensors to keep their token pricing accurate because they usually don’t have an order book. There are also oracles that enable tokens to be pegged to off-chain assets such as stocks and commodities. As the use case scenarios for oracles expand, so does Tellor’s importance in the market.
What Problems Does Tellor (TRB) Solve?
One of the main problems Tellor seeks to eliminate is false reporting. The unalterable nature of many blockchain networks means that miss-reported data can create a ripple effect. These issues arise from the fact that early oracles operated in a singular fashion. This centralized point of failure weakened the entire effectiveness of the network.
Tellor leverages a decentralized structure to verify that all data coming from oracles is correct. The system uses a multi-layered verification system and incentivization to ensure that all oracles only provide vetted, real-world, off-chain information. In this way, Tellor provides a secure network of oracle data reporters to the blockchain economy.
Benefits of Tellor (TRB)
There are a lot of reasons why a user would integrate Tellor oracles into their platform. For one, the network enables smart contracts on Ethereum to securely connect to verified external data sources. This provides Dapp developers with access to information in a faster and more efficient manner.
How Does Tellor (TRB) Work
Tellor is an Ethereum-based network. As such, users are able to interact with the platform utilizing all ERC-20 compliant wallets. The network breaks down oracle data transmission and retrieval into multiple components. The protocol requires that parties pay a fee in the form of Tributes (TRB) to submit a request for data from the network.
When a request is made, the network takes the best-funded query and creates a Proof-of-Work challenge. This challenge is answered by network nodes called reporters. The reporter that provides the information fastest and correctly receives a reward for their efforts. Reporters can gain stature in the network for consistently providing reliable and correct information in a timely manner.
Tellor leverages a Proof-of-Work (PoW) algorithm to ensure that the blockchain remains valid. Interestingly, Tellor’s consensus mechanism supports staking. Miners are required to stake tokens to participate. Specifically, you must stake 1000 TRB in the network staking pool to be eligible for rewards. You also must participate in quarterly voting using the Tellor Improvement Proposals. This strategy ensures that nodes remain interactive and up to date within the community.
The Tellor network’s miners are called reporters. These nodes are tasked with monitoring and relaying data from oracles. The miners compete to add data points. For their efforts, they receive rewards in the form of TRB. The system is more inclusive than Bitcoin in that there are no high-end hardware requirements to become a reporter. You need to simply meet the staking requirements, hold TRB, and run the requisite software.
Tellor introduces a dispute mechanism to automatically solve data errors between oracles. The system charges reporters a small fee for dispute resolution. Of this fee, 10% goes automatically to a tip of the same data type that was removed. The goal of this approach is to motivate reporters to replenish this data as quickly as possible.
Tribute Token (TRB)
Tribute is the main utility token for the Tellor network. Users need to hold TRB to participate in any of the platform’s services including staking and voting. Miners receive rewards in the token and it can also function as a cryptocurrency when needed. As an ERC-20 token, TRB enjoys high interoperability within the market.
Tellor introduces a community governance mechanism that provides its users with a way to guide the platform’s developments. Users can put forth proposals for the community to vote for or against. If the proposal is approved, the system will automatically unlock funds from the community bank. These proposals can cover anything from protocol alterations to monetary policy, like adjusting the circulating supply of TRB
Tellor’s founding team, Nicholas Fett, Brenda Loya, and Michael Zemrose took the valuable lessons learned from their first project, a derivatives exchange called Daxia. Notably, Brenda Boya is a well-known Ethereum developer. She also served as an economist for the US government.
The team realized very early on that the DeFi sector was becoming increasingly dependent on oracles as a vital component of data transmission. Platforms such as Daxia require oracles to keep their pricing system correct. When an oracle provided bad information, it would hinder the capabilities of the exchange considerably. This situation led the team to go on to develop Tellor as an answer to this problem.
How to Buy Tellor (TRB)
Tellor (TRB) is available for purchase on the following exchanges.
Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying TRB. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality. It is the best exchange for residents of India.
Tellor (TRB) – Oracles Are Crucial to Blockchain Adoption
The development team behind Tellor remains ahead of the curve in terms of oracle integration. By providing the market with a streamlined way to integrate these sensors, they empower developers to make more robust and helpful Dapps. In the end, these actions only forward the adoption rate.
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