A brief guide to the WIT token, and how to use it within the Witnet Network
What are WIT tokens?
WIT tokens are a native token on the Witnet blockchain. Each WIT token is made up of 1,000,000,000 NanoWITs. They are used as a tool to incentivize Witnet’s distributed network of mining nodes to retrieve and deliver web data (e.g. sports results, stock prices, weather forecasts, information from other blockchains, etc) using the Witnet protocol.
They also function as a form of collateral on the network, to ensure that node operators are not susceptible to bribery and abide by the rules of the protocol.
How can I use my WIT tokens?
Create and Deploy Data Requests
They can be used as a tool to deploy and pay for data requests on the Witnet Network.
For example, let’s say you want to deploy a data request which retrieves the price of Bitcoin from CoinDesk’s open API using the Witnet Network.
When designing your request on Sheikah, Witnet’s Desktop Client and Wallet Application, you must define the number of nodes you want to employ for the request (known as the “replication factor”). The higher the replication factor, the greater the certainty of the retrieved Bitcoin price, but of course, also the higher the price in WIT tokens you must pay.
Once the data request is deployed, the network will randomly select the nodes from the network. If these nodes successfully retrieve, attest and deliver the price from the API, they will receive their reward. You will now have retrieved the Bitcoin price in a fully decentralized way, and with full assurance of the integrity and validity of this data.
If you are an Ethereum/Solidity Developer, you can see an example Bitcoin Price Feed below.
If you’d like to experiment with running your first Data Request on the Witnet Network, please follow the instructions on the article below.
You can also find detailed instructions on how to create and deploy data requests in Sheikah; Witnet’s Desktop Client and Wallet Application.
Resolve more data requests as a Node Operator
Node Operators can also use WIT tokens as collateral on their nodes, which means their nodes can participate in data requests with higher collateral requirements.
For example, let’s say there’s a data request retrieving and delivering some valuable data. The data requester wants to make sure that all the nodes that participate in the request have collateral locked up in Witnet (i.e. they have “skin in the game”) so that they are not susceptible to bribery. They can require that all participating nodes have a minimum amount of WIT locked up in collateral to participate.
By having the required collateral locked up on your node, you will be able to participate in the data request, increasing your chance of participating and being rewarded in data request payments or through mining.
If you have any more questions, please check out the Frequently Asked Questions article below, or contact us on Telegram or Discord.
Please visit the links below for more ideas and information on how to use your WIT tokens.
