What Is Tellor (TRB)?
Also known as: TRB, Tellor Oracle, Tellor Protocol
In short
Tellor is a permissionless, decentralized oracle protocol that brings off-chain data to smart contracts; data providers report by staking TRB tokens, and incorrect data is checked through a dispute mechanism.
In Tellor's early versions, data was supplied through a competition similar to Proof of Work (PoW): miners both solved a computational puzzle and sent the requested value, for example the price of an asset, on-chain. Tellor's reputation as a mining-based oracle dates to this period. The protocol later abandoned this model and moved to a structure in which reporters stake TRB.
In the current model, each reporter locks tokens as collateral behind the data they submit. Any user can dispute a value they believe is wrong by paying a fee; the dispute is resolved by a vote involving token holders and other stakeholders, and the collateral of a reporter found at fault is slashed. Contracts that use the data are advised to wait for a period before using a value, to allow time for disputes.
This optimistic approach allows any type of requested data to be supplied permissionlessly. On the other hand, one has to wait for the data to be finalized; for this reason it is less suitable for applications that need an up-to-date price within seconds, and its security depends on the effectiveness of the participants who dispute.
Last updated: · This content is for information purposes only and is not investment advice.