Tellor Tributes (TRB)

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 (TRB) 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 (TRB) 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.

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 (TRB) ? (History of Tellor)

Based in the US, Tellor (TRB) 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 (TRB) Unique?

Tellor (TRB) 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 (TRB) Value?

Tellor (TRB) 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.