The system uses a network of competing stakeout data reporters (formerly known as miners) to send the official values of the requested data queried by the data requesters (usually dApps). The reporters must bet 100 tributes (recently reduced as of TellorX, the most recent version of Tellor) to participate.
Tellor Oracle is an on-chain database where data providers compete to add data points. TRB tokens are created for incentives paid to reporters to provide data. The parties pay TRB to send the data request to Oracle. The data requester can provide hints to the data reporter to speed up data updates, but the reporter can also send the required values. This chip system eliminates the need for off-chain data acquisition arrangements and helps Oracle get as fast as it needs to. Based on the rewards assigned to each query, Oracle chooses the best funding query every 510 minutes and creates an issue for the data reporter to solve. Each query collects specific data and makes it available on-chain. After receiving 5 values, the official value is selected and stored in the chain.
Teller holders can challenge the validity of the data reported in the next two days. The team added a layer of security by submitting a TRB. This must be deployed before the submitter is allowed to submit, and if you successfully challenge the submitted value, you run the risk of losing your stake.
Each TRB holder may also challenge the validity of the data transmitted by paying with TRB tokens. In the event of an objection, the objected data will enter a 7-day voting phase where all TRB holders will vote for their validity. If the parties disagree with the voting results by paying a higher dispute fee, the voting time will be doubled until there is no further dispute. If the value is wrong, the reporter loses the bet.
Use of Native tokens in the ecosystem:
Tellor allows smart contracts on Ethereum to securely connect to external data sources. It is an Ethereum token that powers the Tellor network and incentivizes honest reporting of external data.