Data submission is done through a competitive process where miners respond to PoW challenges and the winners get to submit data to Tellor’s on-chain data feed. PoW provides an excellent source of sybil resistant randomness to Tellor’s smart contracts as well as provides an ideal system for token distribution.
Miners have to stake 1000 Tributes to be able to mine. Staking allows for economic penalties to miners submitting incorrect values. If a miner wants to withdraw his stake, he can request a withdrawal at any point. The miner’s tokens are then locked for 7 days in order to wait for potential disputes, at which point he can unlock his tokens for transfer.
Tellor uses a custom hash function based upon available functions in solidity. In order to mine a block, the miners must produce a nonce solving the following equation:
sha256(ripemd160(keccak256(challenge, msg.sender, nonce))) % difficulty = 0
Mining on Tellor is very competitive. For more information on becoming a miner, please see our documentation: https://tellor.readthedocs.io/en/latest/MinerSetup/