What is Tellor?
Tellor is a decentralized oracle protocol that connects smart contracts on Ethereum with external data. It is a secure, transparent, and trustless platform designed to provide reliable and stable off-chain data for decentralized applications (DApps) built on Ethereum. The Tellor network is powered by TRB (Tributes), an ERC20-based utility token that incentivizes honest reporting of external data and serves as the platform's cryptocurrency.
Generally, users face the challenge of searching through multiple exchanges to access live market data and relevant information. Smart contracts developed by exchanges don't have access to trustless off-chain data, but with the Tellor network, smart contracts can securely connect with on-chain data. The network is made up of reporters who work to provide on-chain data in a proof-of-work mechanism, where they compete to record the data and are incentivized for honest reporting.
TRB is the native token of the Tellor network and is used to incentivize reporters for submitting timely and accurate data. It is also used as a governance token, with TRB holders having the ability to vote on network upgrades, monetary policies, mining rewards, and data disputes.
The Tellor network has several use cases, including providing price feeds, a predictions market, bridging assets, and L2 security. It was founded in 2019 by Brenda Loya, Micheal Zemrose, and Nicholas Fett, who bring expertise in data science, blockchain, and economics to the project.
To become a reporter on the Tellor network, a user must stake 100 TRB tokens. Once the tokens are staked, the reporter can start competing to answer questions provided on-chain, such as ETH/USD or weather data. The reporters are rewarded with TRB tokens for providing answers, ensuring that the network remains secure and decentralized.
As the demand for the on-chain data increases, the network automatically increases the mining difficulty. This ensures that the network remains secure and decentralized even with a larger number of miners. Additionally, the network also prevents the centralization of mining and incentivizes honest reporting through the reward system.
However, the total supply of TRB tokens is limited to a specific amount. This means that the number of TRB tokens in circulation can never exceed that limit. This helps in maintaining the value of the token and also prevents inflation.
To date, Tellor has been well-received by the crypto community and has seen significant growth in its user base. The project has been actively collaborating with other blockchain projects and has also been featured in many conferences and events.
The future of Tellor looks bright as the demand for decentralized oracle solutions continues to grow. With its unique proof-of-work mechanism, Tellor is well-positioned to become a leading player in the oracle market. In conclusion, if you are looking for a secure and decentralized way to access real-world data on-chain, Tellor (TRB) is a great option to consider.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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