Introduction
In the age of the internet, we consume data as one of the most valuable commodities. Transaction and exchange of data online is what shapes the world of today. And yet, ordinarily, blockchain-based applications can’t access data that is not fed into the blockchain. According to the founders Brenda Loya and Michael Zemrose, blockchain might hold incredible potential but without accessing off-chain data, it will always struggle to find real-world use cases. This is where Tellor comes in.
Tellor is a blockchain-based decentralised oracle network that connects Ethereum smart contracts to external data via incentivizing a community of data feeders, data consumers, and miners.
What is TRB?
Tellor is secure, transparent, and designed for Ethereum decentralised applications with a focus on decentralised finance (DeFi). $TRB, also known as Tributes, is an ERC-20 token based on Ethereum and is the utility token of the Tellor system.
Normally, crypto users would need to go on crypto exchanges to view charts, values, and other market metrics. The exchanges have APIs that allow users to get reliable data. Tellor enables users to have all the data in one place, using Ethereum smart contracts and Tellor Oracle feeds. Oracle sources real-time, available, reliable, and verified information.
Tellor Oracles create a trustless. Fact-checked information that is available within DeFi Dapps hosted on Ethereum.
Here are some market insights:
Tellor tributes ($TRB)
- Market Cap-$292 Million
- Circulating Supply-2,550,212 TRB
- Total Supply-2,593,633 TRB
How Does Tellor Oracle Work?
Tellor relies on the network of interconnected staked miners who work on solving problems, that is, mathematical equations, to confirm and validate information feeds for the requested data types. This mechanism works through the underpinned proof-of-work consensus.
That is how Tellor prevents manipulation of off-chain data, while it is fed into Ethereum smart contracts every 5 minutes. Miners are incentivised to upload accurate information which they can lose if they submit inaccurate information. This “tip” based incentivization is used to make the network trustless, secure, and decentralised.
How to Mine Tellor?
To mine Tellor, you need to stake 1,000 $TRB tokens. Tellor uses a ‘Staked Proof-of-Work (PoW)’ protocol, which is a combination of Proof-of-Work and Proof-of-Stake systems. This is to prevent malicious activity from other miners who could provide “bad data points”.
Following are some other things to be known for mining on Tellor:
- Mining either requires an Ethereum node or an Infura API endpoint.
- Miners compete via Proof-of-Work (PoW) to provide requested data
- Data requests are queued with a small $TRB bounty
- The Tellor Oracle provides the data based on the median of the five fastest PoW miners.
- Data can be disputed.
- In the case of reporting with bad data, the user can lose all staked.
What are the Benefits and Use Cases of Tellor (TRB) Tokens?
- $TRB is an ERC-20 utility token primarily used for incentivizing reporters who submit timely and accurate data.
- $TRB contributes to adding valuable information to various DeFi applications by seemingly bringing it on-chain.
- Tellor is used for answering any question on-chain. As the off-chain data is put on the blockchain through a verification process, any question related to the data fed can be answered with accuracy.
Future of Tellor Token
The market for Tellor tokens is growing with the increasing number of DeFi users. The present sentiment among the populace is Neutral Bullish. Tellor’s unique way of including off-chain, verified data in the Ethereum Smart Contract seems intriguing. This also gives much space for the potential of enhanced utility.
Conclusion
With the present positive sentiments of the populace, the adaptation of Tellor ($TRB) is growing. Tellor’s unique approach to submitting accurate off-chain data on Ethereum smart contracts works effectively for Decentralised Finance (DeFi). Incentivizing data uploaders creates a trust-free, transparent, and secure network that works to authenticate and maintain data input on the chain.
If you found this blog to be useful, do share it with other like-minded crypto enthusiasts. Click on the button below to begin your crypto trading journey using ZebPay.
