What is TSS-Based Oracle Signing?

What is TSS-Based Oracle Signing?

Oracles help smart contracts get real-world data like crypto prices, stock values, or interest rates. But here’s a big question:
How do you trust the data they send?

That’s where TSS-based Oracle Signing comes in.

TSS stands for Threshold Signature Scheme. It's a special cryptographic method that makes multiple oracle nodes work together to sign and send data as one team, not alone.


Why Oracles Need Better Signing

In traditional oracles, one node might send a price like “ETH = $3,000” to the blockchain. But if that node gets hacked or goes offline, bad things can happen:

  • ❌ Wrong prices
  • ❌ Fake data
  • ❌ Exploits and losses in DeFi

So, we need a better system one where no single node has too much power. That’s where TSS helps.


How TSS Signing Works (In Simple Words)

  • Imagine 5 oracle nodes holding a secret puzzle piece each
  • At least 3 of them must agree to create a full signature
  • No one knows the full key even the nodes themselves
  • The data is only accepted if enough trusted nodes approve and sign it together

That’s Threshold Signing: no one can cheat alone.


RedStone TSSO

RedStone Oracles launched something called TSSO short for Trusted Single Source Oracle. It uses TSS to sign price data from a single source, but with multiple signers verifying it.

So even if the data comes from just one place (like Securitize or Coinbase), it’s signed and verified by a group of trusted nodes using TSS.

Why that’s cool:

  • No need to average lots of noisy data feeds
  • Still secure because the signing is decentralized
  • Great for real-world assets (RWAs) like tokenized stocks or bonds

What Makes TSSO Powerful

  • Trust-Minimized: No single point of failure
  • Efficient: Only one value signed, so gas is lower
  • Accurate: Ideal for regulated data like NAV, stock prices, or yield curves
  • RWA-Ready: Works perfectly with trusted off-chain data sources like Securitize

Conclusion

TSS-based Oracle Signing is a smarter, safer way to bring off-chain data on-chain.
With tools like RedStone TSSO, we get fast, efficient, and trustable data feeds perfect for DeFi, tokenized assets, and real-world use cases.

No more picking between speed and security TSS gives us both.