In the world of cryptocurrency, Tellor (TRB) token has attracted widespread attention as a unique virtual currency. So, what exactly is the Tellor (TRB) token? What is its historical development trajectory? What are its distinctive characteristics? This article will answer them one by one for you.
Introduction to Tellor
Tellor is a decentralized oracle network built on blockchain technology, which cleverly connects smart contracts on Ethereum with data in the outside world. Its design concept emphasizes security and transparency, especially for the decentralized applications of Ethereum, especially in the field of decentralized finance. With Tellor, smart contracts on Ethereum can easily obtain valuable off-chain data while ensuring the reliability and stability of these data sources.
In the past, cryptocurrency users often needed to log in to exchange platforms to obtain real-time market dynamics and related indicators. This is because the exchange provides an API interface that allows users to track the accurate data source. But now, with Tellor, users can easily obtain all kinds of data they need through a centralized platform, namely smart contracts based on Ethereum and Tellor oracles. This oracle technology can capture available, reliable and verified market information in real time, allowing users to grasp effective market dynamics without having to jump to the exchange.
Normally, smart contracts on the Ethereum network cannot access off-chain data, and their information sources are limited to within the contract. But Tellor breaks this limitation by enabling smart contracts to connect to on-chain databases built and supported by staking miners. This innovation not only optimizes the data acquisition method, but also builds a new ecosystem through the Tellor oracle. In this ecosystem, users can easily access reliable information that has been verified and does not need to be verified again. This information provides powerful data support for DeFi Dapps on Ethereum.
What is an oracle?
Oracles, as off-chain sensors that can interact with the blockchain network, occupy a pivotal position in the decentralized economy. It is these sensors that enable blockchain to seamlessly connect with other networks. As decentralized finance (DeFi) booms, the demand for such services is also increasing.
Nowadays, oracles have been widely used in various scenarios. Decentralized exchanges (DEX) rely on these sensors to ensure the accuracy of their token pricing, as they typically do not have traditional order book systems. In addition, there are some oracles that can link tokens to off-chain assets, such as stocks and commodities. As the application scenarios of oracles continue to expand, Tellor's influence in the market has gradually increased.
Tellor’s history and development
Tellor, headquartered in the United States, was co-founded by Brenda Loya and Michael Zemrose in 2019 to solve the off-chain data feedback speed and cost issues faced by oracles. Brenda Loya brings deep experience in blockchain, data science, and scalability to her role as Tellor’s CEO. It’s worth mentioning that the same team that created Tellor also built Daxia, a derivatives protocol also hosted on the Ethereum network.
On August 5, 2019, Tellor announced the launch of its decentralized oracle service on the Ethereum mainnet.
Fast forward to 2021, the Tellor team has further launched TellorX, an enhanced version to overcome the scalability issues of the original Tellor. This innovative move transforms the network from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus protocol, thereby increasing system speed and resource efficiency.
Tellor has made significant progress in recent years, and here are some of the key milestones:
May 9, 2019: Binance Labs, the venture capital arm of Binance, invests in Tellor.
September 23, 2020: Tellor V2 goes online.
May 5, 2021: Coinbase lists TRB.
December 6, 2021: Tellor successfully launched its latest blockchain oracle, TellorX, on Ethereum.
November 2, 2022: Tellor360 is launched on the Ethereum mainnet, becoming the only immutable and decentralized oracle in the “EVMiverse” with an easy-to-use unified structure across all Ethereum Virtual Machine (EVM) chains.
In addition, Tellor continues to expand its deployment on different blockchain networks, including Polygon, Algorand, Harmony, Gnosis, Optimism, and most recently the Manta Pacific mainnet, demonstrating its broad influence and continued presence in the blockchain field. of innovation.
What are the characteristics of Tellor?
Tellor is not the only oracle network, but it is unique in that it relies on miners rather than traditional nodes to operate. This feature gives Tellor a clear advantage over other oracle networks in terms of decentralization. In order to support its working mode, Tellor also provides auxiliary tools such as Dispute Center and Tellorscan.
However, in the Tellor network, after winning a stake, you need to wait approximately 15 minutes before the next vote can be cast. It’s worth mentioning that Tellor employs a hybrid protocol to run its operations.
Specifically, it utilizes a proof-of-work mechanism to process data, but requires that 1,000 TRB coins be frozen in a designated wallet to participate in this process. Such a design not only improves the security of the system, but also effectively prevents malicious miners from providing wrong data points.
How does Tellor work?
Tellor, this oracle network, is rooted in the Ethereum network and provides key off-chain data services for Ethereum smart contracts. It is like a bridge that cleverly connects smart contracts with external data sources, building a trustworthy source of information for users. This innovative move uses oracles and the concept of decentralization to completely eliminate dependence on third parties.
To ensure the reliability and security of the information provided, Tellor relies on a tightly connected network of stakers who work on solving complex mathematical problems to verify and confirm the authenticity and accuracy of the requested data. This mechanism works thanks to the support of the proof-of-work consensus protocol.
This is how Tellor effectively prevents off-chain data from being manipulated. At the same time, Tellor’s smart contract updates the data source every five minutes. The reason why pledgers actively upload accurate query results is that on the one hand, the query itself comes with a "tip", and on the other hand, it is because a certain number of tokens need to be pledged before participating. If the information provided is inaccurate, they may lose these staked tokens. It is in this way that the Tellor network achieves trustless, decentralized and secure data supply with stable prices.
What kind of virtual currency is TRB token?
TRB, also known as Tributes, is the core token of the Tellor system, which follows the ERC-20 standard of Ethereum. These tokens are primarily used to incentivize data providers to ensure a continuous supply of data through base rewards and user-requested “tips.”
TRB tokens also participate in the management of valid data and dispute resolution, while giving token holders the right to propose system upgrades and vote.
The following are several core uses of TRB tokens: Payment services: Smart contract developers on the blockchain can request specific data from the Tellor oracle by paying TRB tokens. Data providers compete to provide the required data, and a voting mechanism selects the most accurate information.
Data provision incentives: TRB is used to incentivize data providers to compete and solve cryptographic puzzles as part of the proof-of-work consensus mechanism. Tributes ensure that the Tellor network can provide accurate and timely data. But it is worth noting that data providers need to stake 1,000 TRB tokens.
In summary: Tellor (TRB) token, as a decentralized oracle, has shown strong potential and broad application prospects in the field of cryptocurrency and blockchain through its unique design and operating mechanism. As blockchain technology continues to develop, Tellor is expected to play a more important role in the future digital economy.