What is Tellor (TRB)?

Tellor operates as a decentralized oracle network on the blockchain, linking Ethereum's smart contracts to external data. Tailored for decentralized finance within the Ethereum ecosystem, Tellor prioritizes security and transparency. Its primary function involves furnishing Ethereum smart contracts with dependable off-chain data, ensuring the stability and reliability of data feeds.

Traditionally, individuals engaged in cryptocurrencies would resort to cryptocurrency exchanges to access real-time market data and pertinent metrics. These exchanges provide APIs enabling users to access trustworthy data feeds. 

However, Tellor simplifies this process by consolidating all necessary information within Ethereum-based smart contracts utilizing Tellor oracle feeds. These oracles diligently procure and deliver authenticated, current, and credible information, sparing users the need to visit crypto exchanges for valid market data.

Tellor (TRB) is a decentralized oracle protocol that addresses the challenges posed by accessing external data in blockchain systems, where trustlessness and immutability are fundamental principles. When decentralized applications incorporate data from external sources into their smart contracts, they introduce a vulnerability, as these sources can potentially fail or act maliciously, creating a central weak point in the protocol.

To combat this issue, Tellor implements a decentralized oracle network with incentivization and dispute-resolution mechanisms. Individuals can deposit stakes within the protocol to serve as data reporters, providing information to data consumers and earning rewards. 

Tellor's dispute model allows anyone to challenge data reliability by paying a fee. If a reporter loses a dispute, they are penalized, and the staked amount is transferred to the opposing party. The native token, Tribute TRB, is utilized within Tellor for various purposes, including governance, payment of transaction fees, incentivization of participants, and voting on disputes.

Who are the founders of Tellor?

Established in 2019, Tellor was created by a group based in the United States with the primary objective of tackling the oracle issue within the Ethereum blockchain. The founders of Tellor include Brenda Loya, Nick Fett, and Michael Zemrose.

Brenda Loya serves as the CEO and co-founder of Tellor. Prior to her role at Tellor, Brenda held positions as the VP and Lead Developer at Daxia, specializing in blockchain, scalability, and data science. Before that, she worked as an economist and supervisory statistician at the U.S. Department of Labor.

Nick Fett, as a co-founder and CTO of Tellor, previously founded Daxia, a derivatives protocol operating on Ethereum. Nick's background encompasses expertise in economics, regulation, derivatives, and machine learning, with experience gained from positions at the U.S. Commodities Futures Trading Commission.

Michael Zemrose, a co-founder and CSO of Tellor, was previously involved in business development at Daxia. Prior to his ventures in the crypto space, he spent several years as an entrepreneur in the media and consulting fields.

What is the working mechanism of Tellor?

Users can request off-chain data by initiating data requests specifying the required data type and source. The protocol assigns unique identification numbers (IDs) to each data request using a hashing function for differentiation and tracking.

Data reporters, who have staked deposits, select data requests to fulfill and retrieve relevant data from external sources through APIs and other methods. Subsequently, they submit the acquired data values to the blockchain and await a predefined period (approximately 12 hours) before their next task.

Data reporters receive rewards in two ways: through tips from clients and time-based inflationary rewards. The waiting period facilitates dispute resolution; if a party suspects incorrect or malicious data, they can initiate a challenge with evidence against the reporter. The Tellor community votes on these disputes to determine the accuracy and validity of the data value.

What sets TRB's unique use cases apart?

• Participants utilize TRB tokens for engagement in the protocol, contributing data to applications and clients, thereby earning rewards.

• Tellor employs a combination of Proof of Work and Proof of Stake consensus mechanisms, with miners safeguarding the network through puzzle-solving while also staking tokens for governance involvement.

• Originally launched on Ethereum, Tellor now extends its support to various blockchains, encompassing Polygon, Gnosis, Optimism, Arbitrum, and Filecoin FVM.

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