In recent times, you have probably seen strong growth from Oracle projects like Chainlink or Band. In today's article, I will introduce a potential project Tellor - the Oracle project to promote the growth of the DeFi market.
What is Tellor Project?
Tellor is a decentralized Oracle network to bring secure and high-value off-chain data into Ethereum. Tellor was established on August 1, 2019, and is headquartered in the US.
Many organizations define that Tellor is the bridge to provide real-world information and data for Smart contracts (particularly DeFi applications) on Ethereum.
What problem does Tellor solve?
Tellor looks forward to solving Oracle problems on Ethereum, namely:
Currently, smart contracts themselves are incapable of interacting with any data source outside of the blockchain. So smart contracts are always dependent on a centralized data supply.
Putting it into context: Tellor wants to address the problem of the lack of secure and decentralized data supplies for DeFi applications on Ethereum.
Tellor's goal is to help the DeFi industry thrive by providing a secure and high-quality source of data.
How Tellor (TRB) solves the problem
To solve the problem, Tellor set a goal as becoming a data-bank. Tellor is the data bank where miners compete to add data points to the Tellor platform in exchange for "TRB" or "TRB" rewards.
Components participating in the Tellor ecosystem:
- Data requesters
- Miners - data providers
- Disputers
- Voters
How it works:
- The pink part is the Data requester.
- The green part is the Miners.
- The red part is Disputers and Voters.
B1: Data interested parties will submit a data request (e.g. ETH / BTC or ETH / BTC price, ...) to Oracle and they will have to pay in TRB for that request. Requests with high amounts are usually handled first by Miners.
B2: Miners will participate in making those data requests. The condition to participate is to stake 1000 TRB to the network. Miners will receive 2 main rewards for their efforts: the basic reward from the network and the bonus from the requester.
B3: Disputers has the right to participate in a dispute evaluating whether data from Miners is correct or not. To participate, a fee is required to initiate a dispute.
B4: Voters will vote to evaluate the data. If the data from Miners is false, then the Miner will lose 1,000 TRB originally staked, which will be divided between Disputers and Voters. If the data is correct then Miners will receive a dispute fee.
What is the Tellor (TRB) token?
TRB is the official cryptocurrency in the Tellor ecosystem issued through mining, not an ICO. TRB was launched on August 5, 2019.
Basic information about TRB
- Ticker: TRB
- Contract: 0x0ba45a8b5d5575935b8158a88c631e9f9c95a2e5
- Decimal: 18
- Blockchain: Ethereum
- Token Standard: ERC-20
- Token type: Mineable
- Consensus: PoW
- Max Supply: No fixed
- Total Supply: 1,449,661 TRB
- Circulating Supply: 1,356,350 TRB
Token Generation Event
Tellor does not do an ICO, instead TRB will be mined by mining. Tellor's first block was mined on August 1, 2019.
Every 10 minutes there will be 1 block generated, so in a day there will be 144 blocks generated corresponding to 144 data requests per day. Tellor's total supply will be determined by the rate of use and exploitation. Tellor's supply will increase with the following formula:
Base reward * total daily queries
Below is a chart showing Tellor supply and assumed growth fully utilized.
Compare Tellor with Band and Chainlink
Note:
- Decentralized Oracle: Decentralized Oracle.
- Intuitive & Instant Query Processing: intuitive and fast processing of data requests.
- No Third-party Point of Failure: Does not depend on 3rd party data provider.
- Payment in Native Currency: Allows payments in local currency.
- Support Multiple Data Types: Support multiple data types.
- Dedicated Token for Each Data Type: Separate token for each data.
- Support Multiple Blockchains: Supports multiple blockchains.
What is Tellor (TRB) used for?
- Payment
TRB is used to pay when someone wants to request data from Tellor.
- Rewards
TRB is used as a reward for miners when they add data to the Tellor system. The Tellor team will take up 10% of the mining reward.
Bonus for Miners is currently 2.7 TRB per block, the current inflation rate is 53.27% for 1 year.
The formula for calculating inflation rate:
Monthly reward = (reward * 5 * 1.1 * 6 * 24 * 30)
Inflation = monthly reward * 12 / total supply
Below is a graph showing the inflation rate of TRB in the coming time:
- Stake to allow Mining
Miners need to stake 1,000 TRB in the Tellor network to be allowed to participate in Mining. This is a way to avoid malicious situations with the network.
- Disputes Fee
TRB is used to pay fees to dispute the validity of data points. Disputers / Voters will initiate disputes and vote on the validity of the data.
The dispute fee will depend on the number of miners on the system (more miners = fewer disputes, few miners = more disputes).
The dispute fee will not exceed 1,000 TRB. At the time of writing, the fee to make a dispute is 820 TRB.
How to mine Tellor (TRB)?
Tellor uses a hybrid algorithm called staked PoW so brothers can mine TRB through Mining.
To join TRB mining you need to do the following
- Download Latest Binary Release to PC.
- Launch the application.
- Stake 1000 TRB into account.
- Start mining TRB.
Where to buy and sell Tellor (TRB)?
After nearly a year of launch, TRB coin is currently ranked No. 315 on Coinmarketcap and is traded on many different exchanges such as Binance, Bilaxy, Hotbit, CITEX, IDEX ...
The average total trading volume over the past 30 days has reached more than $ 1.65 million. That demonstrates the liquidity of TRB tokens quite well at the moment.
The Future of Tellor Copper (TRB)
- Market potential
Tellor addresses the limitations of Smart Contract to help the DeFi industry thrive. This was an opportunity for Tellor to enter the potential DeFi market.
With a total value of locked assets up to 3.89 billion dollars, Tellor is truly a potential investment opportunity for investors who want to join the Defi market.
- Competitors
Tellor will face competition from projects with the same famous Oracle solution as Chainlink, Band Protocol, Augur, UMA.
Should I invest in Tellor (TRB)?
I believe you have already grasped the basic and necessary information about Tellor copper (TRB). I will note some key points so that you can easily make an investment decision.
- Roadmap
Tellor's biggest event in the late 2020s is the V2 update. Some notable upgrades:
- Reward limit per miner
- No time limit for disputes
- Dispute many rounds
- Increase stake from 1,000 TRB to 2,000 TRB to control individuals with bad intentions
- Products
Later this year, Tellor will launch Alternate Chain (AC) with a plan to build a PoS Tellor system on AC.
- Partner
Tellor has famous big investors such as MAKER, Binance Labs, Consensys.
- Token
TRB is a mining token that is used for: rewards, payments, and names fee.
Conclusion
Hope my last article has helped you have a better overview of the Tellor project as well as the TRB coin. If you have any questions, feel free to leave a comment. We will solve your questions as quickly as possible.
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➤ Learn more: Top 5 Defi projects in 2020 that you should invest in