Are you looking to earn rewards while supporting a secure and decentralised Oracle network? Mining Tellor (TRB) could be the perfect opportunity. Tellor is a blockchain-based oracle platform designed for Ethereum decentralised applications, especially in the DeFi (decentralised finance) space. It provides reliable, real-time data through smart contracts, enabling seamless integration with DeFi applications.
The Tellor network uses $TRB, or Tributes, as its utility token. These tokens power the system by incentivising miners to secure the network and verify data. Unlike traditional methods, Tellor eliminates the need for third-party APIs, offering users fact-checked and trustless information directly on the blockchain.
In this guide, you’ll learn everything about mining Tellor and earning rewards with $TRB. Whether you’re new to mining or already experienced, this article will simplify the process step-by-step. Let’s get started!
Is Tellor Mining Profitable?
Mining Tellor (TRB) can be profitable, but it depends on several factors, such as the cost of electricity, the price of TRB, and the mining hardware used. The profitability of Tellor mining is influenced by the Proof-of-Work (PoW) algorithm, which requires significant computational power.
Miners are rewarded with TRB tokens for providing accurate data to the Tellor network, and they need to stake 1000 TRB to participate in mining. However, the profitability can fluctuate based on market conditions and mining difficulty.
How To Mine Tellor: Our Top 5 Recommendations
Mining Tellor involves several key steps, from setting up a server to configuring files and staking TRB tokens. Below are detailed steps to get you started efficiently.
Set Up an AWS Ubuntu/Linux Server
Start by creating an AWS server, which acts as the backbone of your mining operations. Choose at least a t2.small instance for optimal performance. Connect to this server using SSH. AWS provides a scalable and secure platform to handle Tellor’s mining requirements.
Set Up an AWS Ubuntu/Linux Server
Create a directory named tellor on your server using:
- mkdir tellor
- cd tellor
Next, update your system using sudo apt-get update and download the Tellor Miner software from GitHub using:
wget https://github.com/tellor-io/TellorMiner/releases/latest/download/TellorMiner |
Ensure the downloaded file is executable. Modify permissions with:
sudo chmod +x ./TellorMiner |
Configure Mining Settings
Create a config.json file by running:
- nano config.json
Paste the configuration code provided by Tellor, but update the values for nodeURL, privateKey, and publicAddress. These details link your mining setup to the blockchain and wallet. If mining without a GPU, delete the gpuConfig section.
Set Up an Ethereum Wallet
Create an Ethereum wallet using a reputable provider like MetaMask. Back up the wallet by securely storing the recovery phrase and private key. Fund your wallet with 1000 TRB tokens and enough ETH for transaction fees. Update your config.json file with:
- nodeURL: The URL of your Ethereum node (e.g., Infura).
- privateKey: Your Ethereum wallet’s private key.
- publicAddress: Your wallet’s public key (without the “0x” prefix).
Stake TRB and Start Mining
Before mining, stake your 1000 TRB tokens using the command:
./TellorMiner -deposit -psrPath=./psr.json -config=./config.json -logConfig=./loggingConfig.json |
Then, start the mining process with:
./TellorMiner -miner -dataServer -psrPath=./psr.json -config=./config.json -logConfig=./loggingConfig.json |
Your miner will now begin solving Tellor queries, contributing to the network, and earning rewards.
Popular video guides on Mining Tellor (TRB)
How Does Tellor Mining Work?
Tellor mining plays a vital role in securing the network and ensuring accurate data submission. It aligns economic incentives with game theory principles to maintain the integrity of Tellor’s decentralised oracle system. This mining mechanism supports network participation and governance while safeguarding against malicious attacks. Let’s explore the process in detail.
Purpose of Tellor Mining
The primary goal of mining in the Tellor network is to provide valid data without a centralised point of failure. It achieves this by aligning incentives for miners and making attacks on the network expensive. The process involves producing new Tributes (TRB), Tellor’s native cryptocurrency while ensuring the system remains secure and reliable.
Data Request and Incentive Structure
Mining begins with a smart contract requesting specific data, such as an Ethereum (ETH) to US Dollar (USD) price feed. The request is added to a queue with a TRB bounty to encourage miners to provide the required information. This bounty system not only incentivises participation but also ensures a steady supply of TRB.
Proof of Work (PoW) Competition
Miners compete to solve Tellor’s computationally intensive PoW algorithm to earn the right to submit data. The process involves:
- Solving a mathematical problem to validate their work.
- Earning TRB rewards for successful submissions.
- Claiming the data requester’s bounty.
This competition boosts the network’s hash rate, increasing its security by making it costlier for attackers to gain the most computational power.
Median Value Selection
The five fastest miners to solve the PoW problem are rewarded with TRB. Their data submissions are considered, and the system selects the median value instead of the average. This approach:
- Minimises risks of manipulation by extreme outliers.
- Increases the difficulty of a 51% attack, as attackers must control at least three out of five winning submissions.
Mining and Network Security
Tellor’s unique mining system enhances security through multiple layers:
- The PoW mechanism encourages competition, requiring miners to add computational power.
- Median value selection prevents single-party dominance.
- High hash rates and dispersed miner activity disincentivise collusion and malicious behaviour.
How Long Does It Take to Mine One Tellor?
The time it takes to mine one Tellor token can vary significantly due to factors such as the miner’s hash rate, network difficulty, and overall competition from other miners. On average, it can take anywhere from 10 minutes to several hours to mine a single TRB token. This variability is because mining is a probabilistic process, and there’s no fixed time for mining a token. It’s important to use mining calculators and stay updated with the latest network conditions to accurately estimate potential mining times and profitability.
How Difficult Is It to Mine Tellor?
Mining Tellor (TRB) can be moderately difficult due to its Proof-of-Work (PoW) algorithm and the requirement to stake 1000 TRB tokens as a security deposit. The PoW algorithm has a difficulty target of about 10 minutes, meaning it takes roughly 10 minutes to mine a block. However, this can vary based on network conditions and competition from other miners. Additionally, miners need to submit on-chain transactions on Ethereum, which can incur gas fees that fluctuate based on network congestion.
What All Do I Need to Mine Tellor?
Mining Tellor (TRB) requires specific hardware and software to ensure efficient and uninterrupted mining operations. Below is a breakdown of the essential tools and setups you need.
Hardware Requirements
Here are the hardware details which you need to mine Tellor:
High-Performance Computer
Mining Tellor demands a computer with a robust CPU or GPU. These components handle the intensive Proof-of-Work (PoW) calculations required for the Tellor network. A high-performance setup ensures that you can process mining tasks effectively without delays.
Mining Rig
For enhanced efficiency, you can use specialised mining hardware like ASICs (Application-Specific Integrated Circuits). These devices are purpose-built for mining and can significantly improve your performance compared to regular GPUs.
Cooling System
Mining generates substantial heat, especially during prolonged sessions. A reliable cooling system is essential to prevent your equipment from overheating, ensuring the longevity and stability of your mining hardware. This can include fans, liquid cooling systems, or even customised setups for temperature regulation.
Software Requirements
Here are the software details which you need to mine Tellor:
Telliot CLI Tool
The Telliot Command-Line Interface (CLI) tool is the primary software you need to interact with the Tellor network. This tool is crucial for running mining operations and managing your contributions to the Tellor ecosystem effectively.
Ethereum Node Access
Mining Tellor requires access to an Ethereum node. You can either set up your own node or use services like Infura to connect to the Ethereum network. This connection enables communication with the blockchain, which is vital for submitting data and verifying transactions.
By ensuring you have the right hardware and software, you can set up an efficient Tellor mining operation tailored to your needs.
Top Wallets to Store Your Tellor
To ensure the safety and accessibility of your Tellor (TRB), selecting the right wallet is essential. Each wallet offers unique features catering to different user needs. Let’s explore the top wallets for storing Tellor and their standout advantages.
Guarda Wallet provides a user-friendly interface, making it an ideal choice for both beginners and seasoned investors. This multi-asset wallet supports Tellor, allowing you to manage your holdings seamlessly. It offers web, mobile, and desktop access, along with strong encryption to keep your assets secure. Guarda’s in-app exchange feature is an added convenience.
Atomic Wallet simplifies Tellor management by offering a decentralised, non-custodial experience. Its intuitive interface supports over 500 assets, including TRB. The wallet ensures high-level security, with private keys stored locally. Atomic’s integrated exchange and staking features provide users with added utility, making it a well-rounded option for crypto investors.
MetaMask Wallet is a favourite for managing ERC-20 tokens like Tellor. With browser extension and mobile app availability, it enables effortless integration with decentralised applications (dApps). It offers a simple, secure interface and gives users complete control over their private keys. MetaMask also supports hardware wallet integration for enhanced security.
Enkrypt Wallet focuses on a multi-chain experience, making it perfect for Tellor and other assets. It supports browser extensions, making dApp access easy. The wallet is secure and private, offering advanced features like compatibility with multiple networks. Enkrypt’s user-centric design ensures a smooth experience for managing TRB.
Ledger Wallet is a hardware wallet designed for maximum security. It stores your Tellor offline, protecting it from cyber threats. Its compatibility with Ledger Live ensures easy portfolio management. With its robust physical design and advanced encryption technology, Ledger Wallet is the go-to choice for long-term TRB storage.
Frequently Asked Questions
What Do Miners Do in Tellor Mining?
In Tellor mining, miners play a crucial role in fulfilling data requests and ensuring accurate information is provided. They start by checking the data request queue, which may include queries like the ETH/USD price, and gather the required data from sources, such as exchange APIs. Miners then participate in a Proof-of-Work (PoW) competition. Once a valid solution is found, they submit the solution, request ID, and the requested data value. Miners who complete this process earn TRB tokens as rewards.
How Does the Tellor Oracle Work?
Tellor’s oracle system operates through a network of staked miners who solve mathematical equations to validate off-chain data. These miners work under a Proof-of-Work (PoW) consensus mechanism, which ensures that only verified data is submitted to the blockchain. Data is uploaded to Ethereum smart contracts every five minutes, making it timely and reliable. To maintain data integrity, miners are incentivised to submit accurate information, as submitting false data can result in financial penalties. This “tip” system enhances the oracle’s security, decentralisation, and trustworthiness, ensuring seamless integration of off-chain data into blockchain networks.
Where Can You Buy Tellor Tokens?
Tellor tokens (TRB) can be purchased on several major cryptocurrency exchanges, including Coinbase, Binance, Gate.io, OKX, and KuCoin. These platforms support the trading and storage of TRB tokens, offering traders and investors easy access to the Tellor network. Before purchasing, it’s important to verify the security and reputation of the exchange, enabling safe transactions and storage for your TRB assets. Many of these platforms also offer tools to track prices and manage portfolios effectively.
What Are the Benefits of Tellor Tokens?
Tellor’s TRB token is an ERC-20 utility token that incentivises data reporters to deliver accurate and timely information to blockchain networks. It acts as a bridge between off-chain data sources and decentralised finance (DeFi) applications, enabling reliable data feeds for smart contracts. TRB enhances blockchain functionality by verifying and validating data before making it available on-chain.
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