Back in 2017, Nick worked on Daxia – a smart contract creation platform for Over-The-Counter derivatives on decentralised networks. Derivatives are financial assets that derive their value from a chosen assets’ performance. Derivatives in DeFi are especially important because of the lack of interoperability between blockchains. For instance, the Bitcoin blockchain is written in a different programming language than that of the Ethereum blockchain.
A way around this incompatibility of languages is wrapped tokens, a common derivative used in the blockchain space. An oracle service would be important in ensuring that as long as Wrapped BTC is used on the Ethereum network, the corresponding amount on the Bitcoin network is not spent. Using this WBTC example.
Back when Daxia was created, the only oracle service available was Oraclize, now known as Provable Things. Oraclize, however, was a very centralised service, with just one server reporting data. This made it the single point of failure for decentralised platforms using Oraclize data – if Oraclize was ever corrupted, your entire platform would receive false data.
After running into all of this while building Daxia, Nick and his co-founders, Brenda Loya and Michael Zemrose, founded their own decentralised oracle solution – Tellor.Since Tellor was launched, a lot has changed in the blockchain space. There are now several different widely-used L1s and L2s. Protocols are no longer restricted to building on just Ethereum.
: while decentralised exchanges like Uniswap have a lot of users and liquidity, Uniswap operates on one chain, ethereum. A cross-chain DEX would allow users to buy and sell tokens on different chains without a centralised third-party processing the trades.Cross-chain communication, DEXs and bridges are all totally reliant on portable and reliable data, and are therefore reliant on robust oracle networks that can provide accurate data in a multi-chain environment.
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WeAreTellor TRB Circulating Supply has increased from 1.7 million to 2.2 million.
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