Importance of Oracles in DeFi | Tellor Oracle Protocol | Nicholas Fett | Polygon Alpha Podcast

Audio from the September 8, 2022 installment of “Polygon Alpha” with Nicholas Fett - CTO at the Tellor Oracle Protocol.

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Tellor Oracle Protocol

- Tellor is a 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), Snapshot Vote Results, or any custom data needs you have.

- If your data can be verified, Tellor can bring it on-chain.

- Blockchains such as Ethereum only have access to a limited amount of information. They are great for tracking an account's cryptocurrency balance, for example.

- If you want your smart contracts to use information about the outside world such as cryptocurrency prices, sporting events, or weather, that data has to be put on chain somehow.

- One way of solving this problem is by having a single whitelisted address submit this data on-chain.

- This creates a central point of weakness in a protocol, however, as this single address could fail or be malicious.

- Tellor solves this problem by aligning the incentives of data reporters, data consumers, and Tellor token holders.

- In brief, anyone can deposit a stake and report data. For a period of time, anyone can pay a dispute fee to challenge any piece of data.

- Tellor stakeholders vote to determine the outcome of the dispute. If the data reporter loses the dispute, the reporter's stake goes to the disputing party.

- This creates a system where bad actors are punished and good actors are rewarded.

Host: Justin Havins aka Crypto Texan

AV Engineer: Aaron Pettijohn

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