Band Protocol (BAND) Introducing the future of data sharing

A decentralized data oracle called Band Protocol collects data from the real world and distributes it to smart contracts on blockchains like Cosmos and Ethereum. Other smart contracts and decentralized applications (dApps) need a variety of real-world data inputs, such as current events and sports, weather, or even random numbers. Decentralized Finance (DeFi) applications need dependable pricing feeds. One method for bringing that external data securely and reliably into the on-chain environment is the Band Protocol.

You can also read: What Are Soulbound Tokens? (All you should know)

What is Band Protocol?

Band Protocol, in a nutshell, is a cross-chain data oracle platform that gathers and integrates APIs, real-world data, and smart contracts. Users can create and administer on-chain oracles, reputation scores, token issuance, and token-curated registries using the Band Protocol.

The network wants to make sure that blockchain smart contracts can communicate with the rest of the world. Their goal is to link blockchains and smart contracts to dependable off-chain or real-world data and services. To resolve their logic and allow secure transfers, smart contracts rely on external price feeds, events, and values that are supplied via conventional web APIs. As an open-source standard that gives a framework for decentralized data management, the Band Protocol offers a data governance framework for Web 3.0 apps.

As a result, a trusted information bridge between Web 2.0 and 3.0 is effectively created by linking smart contracts with trusted off-chain data.

Who will therefore employ the Band Protocol? Users of DeFi applications that have included Band Protocol into their protocols and DApps are the main subject of this study. DeFi apps are the focus since they have so far demonstrated the greatest level of traction among all publicly available blockchain use cases. Furthermore, a lot of DeFi apps rely heavily on pricing oracles for proper operation, and frequently, here is where their design is most vulnerable.

Asynchronous interactions between smart contracts and data layers frequently plague conventional data provider networks; this complicates the deployment of smart contracts and adds a considerable delay because two blockchain transactions must be confirmed and carried out sequentially.

With the aid of a straightforward function call to a static smart contract, the Band Protocol’s solution offers DApps an interface to receive data from the real world.

To input and curate data to the blockchain, data providers like exchanges and data aggregators like CoinGecko or CoinMarketCap are in charge.

How does Band Protocol work?

Speed and scalability, cross-chain compatibility, and data flexibility are the three core focuses of Band Protocol. The dApp and DeFi sectors, which are expanding quickly, are built on the creation of smart contracts. Response speeds measured in seconds are what Band Protocol aims to deliver to a wide range of public blockchains. Fast and precise responses are required to fulfill the data needs of requesting smart contracts in an adequate manner.

Cross-chain communication is one of the key issues brought on by the walled nature of separate blockchain technologies. Since Band Protocol is a Cosmos-based project, it may communicate data to other blockchains through Cosmos’ IBC, which serves as an interoperable communication layer for many blockchain networks. Custom one-way bridges, which Band Protocol also allows, allow for swift data transfers with blockchains that the IBC does not support.

Band Protocol aims to be agnostic in the sense that it can accept diverse data formats and retrieval techniques. While some of the data that Band Protocol must retrieve is open to the public, some data may be restricted, subject to centralized control, or hidden behind a paywall. If the latter is correct, payment to the data source can be confirmed on-chain, and the validators asking for the data can then receive it in accordance with that verification. Band Protocol’s on-chain payment settlement allows data providers to monetize their data without utilizing middlemen.

What consensus mechanism does Band Protocol use?

There are 2 main types of government in the Band Protocol. The first is oversight of the Band Protocol as a whole. Second, each dataset’s parameters are governed by the dataset token associated with it, which converts into one of two digital assets: dataset tokens or BAND tokens. The ownership interest in a certain dataset inside the Band Protocol is represented by the digital dataset asset.

Staking to obtain data provider slots, staking for data provider curation, and voting are use cases for this asset. You can vote on dataset configurations, such as the number of data providers, the cost of data queries, or the minimal stake requirement, using the dataset token.

The native digital asset of the Band Protocol is the BAND token, which has a fixed supply of 100.000.000 BAND. The BAND asset serves as security for the issuance of dataset tokens. After the Mainnet launch, it serves as a voting token for participation in the BandChain consensus mechanism and network governance choices.

What are Band Protocol’s key goals?

Band Protocol’s shift from Ethereum to Cosmos is largely responsible for its appealing features. Three design objectives guided the creation of the project.

The first one is serving a large number of data requests with little delay is the first goal of speed and scalability.

The next one is cross-chain compatibility. being able to work with the majority of publicly accessible blockchains and be blockchain agnostic.

The third one is data flexibility. Using a general framework to support various techniques of data retrieval and aggregation.

Blockchains benefit from quick interoperability and independence because of the proprietary IBC (Inter-Blockchain Communication) protocol of the Cosmos network. This function enables Band Protocol to support and collaborate with initiatives created on many networks, such as Ethereum, Fantom, Avalanche, and many others.

Over 80 data feeds from an increasing number of data sources are included in the Band Standard Dataset. When creating and deploying DApps on the blockchain network, these decentralized pricing feeds enable developers to be innovative, quick, and adaptable.

In conclusion

A growing Oracle solution supplier, Band Protocol has a dedicated focus on enabling Web3. Its goals of providing a quick, scalable, adaptable, and interoperable service ought to appeal to developers who want to join the Web3 ecosystem.