Tellor isn’t the only oracle network available. But the unique thing about this network is that it uses miners instead of nodes. Thus, it provides better decentralization compared to other oracle networks. Furthermore, Tellor supports its working model through other tools like Dispute Center, Tellorscan, etc.
However, in this network, a miner needs to wait for approximately 15 minutes after a win before they could cast the next vote. An important thing about Tellor is that it uses a hybrid protocol to run its operations.
It means it uses the Proof-of-Work mechanism to process data but the miners need to freeze 1000 TRB coins in a specified wallet if they want to participate in this process. Thus, it prevents malicious miners from feeding bad data points.
How Does Tellor (TRB) Work?
Blockchains are designed in a way that they provide an excellent level of security to the users because they operate independently. But this strength of the blockchain industry becomes a weakness when a user needs to pull live data from an external resource.
For example, Ethereum is a popular smart contract platform that enables users to create apps on its blockchain network. Now, if someone creates a Decentralized Finance (Defi) app on Ethereum, they don’t have any reliable option to show live data of Bitcoin or other cryptocurrency (pancakeswap crypto) prices because these blockchains aren’t interconnected.
In this situation, some platforms use third-party tools to fetch live data. But it ultimately puts their platform at a risk. Tellor TRB is providing a reasonable solution to the problem. It operates as a bridge between blockchain and off-chain data. Read more...