What is Tellor (TRB)?
Tellor is a blockchain-based decentralized oracle network that connects smart contracts on Ethereum to external data. It is secure, transparent, and designed for Ethereum decentralized applications with a focus on decentralized finance. Tellor provides valuable off-chain data for Ethereum smart contracts, while all data feeds are reliable and stable.
Normally, crypto users would need to go to a cryptocurrency exchange to check live market data and relevant information concerning market metrics, as exchanges have APIs that allow users to follow reliable data feeds. Tellor enables users to have all the data they need in one place, through Ethereum-based smart contracts with Tellor oracle feeds. Oracles source real-time, available, reliable, and verified information, so users have access to valid market data without visiting a crypto exchange.
Smart contracts on the Ethereum network don’t normally have access to off-chain data, being limited to only the information contained within the contract. However, Tellor changes this for the better, by allowing smart contracts to connect to on-chain data banks created and backed by staked miners. Tellor oracles create an ecosystem where users can access trustless, fact-checked information that is made available within DeFi Dapps hosted on Ethereum.
How Does Tellor Work?
Tellor is hosted on the Ethereum network and represents an oracle network that feeds Ethereum-based smart contracts off-chain data. It acts as a medium between smart contracts on Ethereum by connecting them to off-chain data and creating trustless feeds for users on the network. That is how the use of oracles and decentralization removes the need for third parties.
To provide trustless and secure information, Tellor relies on the network of interconnected staked miners who work on solving problems, i.e. mathematical equations, to confirm and validate information feeds for requested data types. The protocol underpinning this mechanism is the Proof of Work consensus.
Calculate the price.
That is how Tellor prevents the potential manipulation of data that is sourced off-chain, while the data feeds are updated by Tellor’s smart contracts every 5 minutes. Miners are incentivized to upload accurate solutions to queries partly by the “tip” attached to the query and partly by the fact that they have to stake tokens to participate, which they can lose if they submit inaccurate information. This is how the network is made trustless, decentralized, and secure with stable price feeds.
TRB, also known as Tributes, is the utility token of the Tellor system, and it is an ERC-20 token based on Ethereum. TRB is used in the incentivization system, as it is staked by miners and also used to reward them in the form of “tips” for accurately answering queries.
Who Are the Founders of Tellor? (History of Tellor)
Based in the US, Tellor launched in 2019 and was co-founded by Brenda Loya and Michael Zemrose. The main idea behind the project is to solve the problems of oracles, which are in general the speed and the cost of off-chain data feeds. Brenda Loya has vast experience in the sectors of blockchain, data science, and scalability, and holds the position of CEO of Tellor.
The same dev team that created Tellor also created Daxia, which is a protocol for derivatives and is also hosted on the Ethereum network, much like Tellor.
What Makes Tellor Unique?
Tellor makes it easy for Ethereum smart contract users to get reliable and trustworthy information in a decentralized, secure, and trustless way. Tellor off-chain data sourcing is also more cost-efficient and less time-consuming as data feeds are updated every 5 minutes if enough users request them. Staked miners will process the request and respond to it by sourcing the requested information and validating its reliability while solving an equation.
Tellor allows that same data to be used by other network users who can likewise pay for it to incentivize the miners. TRB powers the network by allowing users to make requests and receive the requested data through the system of incentivization combined with the network of miners, game theory, and oracles.
What Gives Tellor Value?
Tellor value depends on its technical capacity, utility, and the technology used to design and develop the project. All these elements determine the intrinsic value of Tellor, which often doesn’t match the market value of Tellor expressed via TRB price. TRB, much like many other cryptos, is subject to frequent changes in the market, so its price may greatly vary from one trend reversal to the next.
Tellor is also valuable by virtue of the frequency with which people use the Tellor oracle system to source off-chain data. The more users the network has, the greater the value of Tellor and its TRB token. TRB can often be overbought or underbought, depending on trading activity and volumes.
How Many Tellor (TRB) Coins Are There in Circulation?
There are currently TRB in circulation.Tellor doesn’t have a capped max supply as inflation is used to incentivize miners in the form of a base reward. The inflation rate does, however, decrease as the TRB supply grows. Also, only half of the tips attached to user requests go to miners, with the other half being burned each block. The tipping system therefore works against inflation in deciding the rate of supply growth.
The number of Tellor coins in circulation multiplied by the current price of TRB in the market is equal to the market cap of Tellor. The market cap changes with the changing number of coins in circulation and the changing price.
Other Technical Data
The system is designed to source new data for requested feeds every 5 minutes. Staked miners receive a request with the highest bid and then the system provides a challenge for the miners to resolve. Once the miners resolve the equation, they can submit it to the oracle contract along with their data point. The data needs to be validated by the oracle system, after which it will be permanently recorded on the chain.
After the data is saved on the chain, anyone on the network who has TRB can dispute the validity of the data. Anyone who wants to make a dispute can do so within 24 hours and by paying a dispute fee in TRB.
How is the Tellor Network Secured?
The Tellor network is secured through the use of the Proof of Work consensus mechanism. The security of the network depends on staked miners who respond to users’ requests for off-chain data. Miners are incentivized for their participation in securing the network. To prove the validity of provided data, participants need to stake 500 TRB tokens as a guarantee of their trustworthiness, which is how users are assured that they are getting relevant and valid data.
How to Use Tellor
Tellor can be used to source off-chain data for smart contracts on the Ethereum network where Tellor is hosted as a decentralized oracle system. You can use Tellor to request off-chain data to connect with DeFi Dapps. Oracles appear to have the brightest future and the greatest use case in the sector of DeFi as Dapps constantly need to use real-life, real-time, off-chain data.
You can either use the network to pay for and request off-chain data or get paid in TRB through the incentivization system by participating as a staked miner. TRB can be used to dispute the validity of data, and to pay for off-chain data, while you can also trade TRB for a profit on cryptocurrency exchanges.
How to Choose a Tellor Wallet?
As an ERC-20 token, TRB can be stored in any wallet that supports Ethereum and the type of wallet you choose will likely depend on what you want to use it for and how much you need to store.
Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of TRB for more experienced users.
Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of TRB or more novice users.
Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your TRB, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.
Kriptomat offers a secure storage solution, allowing you to both store and trade your TRB tokens without hassle. Storing your TRB with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
Buying and selling TRB, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.
Tellor depends on the network of miners to secure the network and respond to requests, but unlike other Proof of Work mining mechanisms, miners need to stake 500 TRB tokens to support the trustless system and vouch for the validity of the data they provide. So, although Tellor depends on mining, the process of mining is conducted by miners with a stake in the system.
Tellor resolves the oracle problem and tackles the question of the speed and cost of using oracles for connecting off-chain data to smart contracts. The value of Tellor is also seen in its ability to provide a smooth performance despite periods of congestion on Ethereum. Network participants are rewarded for their provision of accurate data, which makes Tellor an even more valuable project.
As DeFi Dapps see a boom in popularity, projects like Tellor may have a bright future ahead with a relevant use case such as efficient and cost-effective oracle software.
Join the crypto revolution and start your Tellor journey today!
What happens when data is disputed?
Any TRB holder can dispute the validity of data submitted by a miner by submitting a challenge and paying a dispute fee. The potentially malicious miner is then placed in a locked state for the next two days while TRB holders vote on the validity of the data. If they vote that the data was correct, the dispute fee is paid to the miner. If they vote that the data was wrong, the miner’s stake is paid to the person who raised the dispute.
Is the Tellor project decentralized?
Tellor aims to be totally decentralized. Like most projects, it was created with an admin key, which allows developers to build system functions but also creates a centralized point of risk. In October 2020, the admin key was sent to a zero address, but an error discovered subsequently forced developers to fork the contract to regain the admin key. In August 2021, Tellor then sent its admin key to a smart contract where it will only be accessible in times of emergency. Otherwise, the project is run by a decentralized autonomous organization.
How to buy Tellor?
Buying TRB is as easy as visiting Kriptomat’s how to buy Tellor page and choosing your preferred method of payment.
How to sell Tellor?
If you already own TRB and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.
Tellor price is in constant flux and is susceptible to frequent and often radical changes in the market. Tellor price is often driven by volatility, which is a strong defining element in the crypto market. The value of TRB can dramatically change within a relatively short period from lows to highs and vice versa.
As well as traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general, the price of TRB is also affected by the number of data requests made and the amount of TRB being staked by miners.
The current Tellor price is EUR.
The 24-hour trading volume of TRB is EUR. TRB is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of TRB.
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