TLDR:
- Launched in 2019, it decentralizes the process of putting real world data on-chain
- Tellor is an immutable and fully permissionless system.
- Reporters stake TRB to report and earn TRB (not trivial and there are associated risks)
- Tellor Layer, launching in 2024, enhances the protocol to bridge data anywhere
Welcome to the world of Tellor! The decentralized protocol that bridges the gap between the real world and an ever growing cryptoverse of multiple blockchains. We’ve been around a while and stayed quite busy – improving the protocol, helping users, and deploying to new chains. Plus, we’ve got a new standalone oracle blockchain we are building called Tellor Layer coming in ‘24. This article should serve as a great jumping off point if you are new to the project. Enjoy.
What is Tellor?
Launched in 2019, Tellor is an immutable decentralized oracle protocol that incentivizes an open, permissionless network of data reporting and data validation, ensuring that data can be provided by anyone and checked by everyone. Built for any data type, our network of reporters supports your basic spot prices, more sophisticated pricing specs (TWAP/VWAP), or any custom data needs you have. If your data can be verified, Tellor can bring it on-chain.
Tellor allows anyone to stake and report data. This means that the Tellor protocol does not depend on the Tellor team. If you integrate Tellor into your protocol, you can rest assured that you will always be able to either pay someone else to submit your data, or just stake and report the data yourself. In other words, Tellor is as permissionless as the blockchain it’s running on.
TRB token
For security and incentivizing liveness of data reporting, the Tellor protocol mints a token called Tellor Tributes (TRB). Reporters must stake TRB in order to participate in putting values on-chain, and users may tip TRB tokens to receive timely updates for the data that their smart contracts require. The oracle contract on Ethereum mainnet pays time-based rewards to incentivize liveness of the reporter network. To prevent bad actors, reporters can be disputed and slashed of their stakes by any TRB holder willing to put up a dispute fee.
Tellor Layer
Tellor Layer is the future of the Tellor protocol, designed to be more optimal in quickly evolving multi-chain crypto landscape. It aims to ensure decentralization, interoperability, and efficient handling of various data types across emerging chains. Tellor Layer, built on the Cosmos SDK, allows validators to achieve consensus on the accuracy of data. Tellor Layer’s consensus model offers several key advantages, including increased participation from validators in signing off on data and the flexibility to establish modular or custom governance frameworks based on query specifications. This approach enhances security, adaptability, and data reliability within the protocol.
At the time of writing, Tellor Layer development is ongoing, with a focus on aligning with values of decentralization.
Becoming a reporter
The Tellor oracle connects people/contracts that need data from the off-chain internet with people who can provide that data permissionlessly. The people who provide data are called reporters. Reporters must stake TRB in order to participate, and it’s important to remember that any staked reporter is subject to potential disputes should they report bad data. However, reporters running “Telliot”, and open-source software CLI, are ready to handle these data requests in real time and create data submissions that qualify for on-chain TRB tips.
To learn more how to use Telliot see the following guides:
https://tellor.io/blog/how-to-install-telliot-the-noob-friendly-guide/
https://tellor.io/blog/how-to-report-oracle-data-with-telliot/
Thanks for diving into the world of Tellor with us! Whether you’re a seasoned blockchain enthusiast or just starting your journey, we’re glad to have you on board. Until next time, keep exploring and stay curious! ?✨
