Written by Torram Labs CTO Lee Raj.
A few weeks ago, we released the alpha version of the Torram Network. This version successfully demonstrated five critical assumptions about leveraging the Bitcoin network:
- Bitcoin can store more than just meme data. It can be used to store the world’s most important financial data, including U.S. Treasury yields, the S&P 500, and crypto-native data.
- Data can be stored in Bitcoin blocks in a decentralized and trustless manner—without compromising the ethos of the Bitcoin network.
- Stored data can be indexed from Bitcoin blocks into highly readable, human-friendly formats.
- It is economically viable for a decentralized P2P network to spend real Bitcoin (on mainnet) to secure data.
- It’s possible to build a Proof of Stake network with the security guarantees of Bitcoin’s Proof of Work.
Crash Course: How Torram Oracles Work
Currently, the Torram network consists of a decentralized set of 30 validators, who operate in a trustless manner by following these steps:
Step 1: Validators aggregate data from trusted sources (e.g., Coinbase, Kraken, Binance) and compute VWAP (Volume-Weighted Average Price) values.
Step 2: Validators collaboratively sign the aggregated data using our Threshold Signature Scheme (TSS), which leads to consensus on the data proposed for submission.
(Note: We are working actively to improve the oracle consensus mechanism)
Step 3: Once consensus is reached, a Merkle proof of the data is generated. Our network of trustless relayers—operated by validators—then broadcasts this proof for inclusion in Bitcoin blocks.
Step 4: After six confirmations on the Bitcoin blockchain, Torram nodes index the validated information from Bitcoin blocks into the Torram network.
Here is a more graphical overview.
Figure 01: Torram produces 1-minute blocks to scale Bitcoin natively
Figure 02: Merkle proofs submitted to Bitcoin every 10 minutes
Figure 03: Torram data links to Bitcoin blocks; hashes included post-confirmation
Figure 04: Validators timestamp data during submission and consensus
Figure 05 (a): After 6 confirmations, data is indexed; crypto chart shown
Figure 05 (b): After 6 confirmations, data is indexed; stock chart shown
The complete list of supported prices feeds can be found in our Github repo – https://github.com/TorramLabs-Team/Torram_Network
For more information and to start building, visit the links below:
