What’s Band Protocol?
Band Protocol is a decentralized blockchain oracle supplier. Decentralized purposes or dApps can leverage Band Protocol to entry exterior world information for feeding it to their smart contracts by way of Band Protocol APIs. Good contracts are all the trend as of late, and so are the blockchain oracle initiatives that play a vital position within the profitable implementation of sensible contracts in real-world initiatives.
Many DeFi protocols make use of sensible contracts for the automated execution of transactions. With out real-world information, sensible contracts can’t execute the transactions. That’s the place initiatives like Band Protocol make a distinction. Band Protocol aggregates exterior world information and feeds it to sensible contracts through APIs. It’s fairly fascinating that the blockchain oracles of Band Protocol have a dual-use. Not solely does Band Protocol’s blockchain oracles transmit information, however additionally it is concerned in block validation.
One other benefit that Band Protocol has is its cross-chain functionalities. Contemplating that many DeFi protocols at the moment are additionally constructed on different blockchains like Algorand, Solana, amongst others, Band Protocol’s cross-chain oracle community is more likely to discover a number of takers. However in its mission to empower scores of DeFi protocols with exterior world information, it faces sturdy competitors from its larger rival Chainlink.
The Historical past of Band Protocol
Based in 2017 by Paul Chonpimai, Sorawit Suriyakarn, and Soravis Srinawakoon, they launched an ERC-20 token in September 2019. That modified in 2020 with the launch of Band Protocol 2.0, as that’s when Band Protocol moved to Cosmos Community.
The founders of Band Protocol are all gifted individuals with spectacular backgrounds. Soravis Srinawakoon, for instance, is a software program engineer and has additionally labored as a administration advisor. At the moment, he’s heading Band Protocol as its CEO. Earlier than founding Band Protocol, he was working with Ericsson and Boston Consulting Group.
Sorawit Suriyakarn is a software program engineer and is presently heading Band Protocol as its CTO. He has labored with reputed corporations like Quora and Dropbox. Paul Chonpimai, the third founding father of Band Protocol, is presently the CPO of Band Protocol. He was working as an internet developer and engineer earlier than he joined Sorawit and Paul to launch Band Protocol. He has labored with the likes of Tripadvisor.
As for the backers of Band Protocol, the corporate has raised $7.9 million so removed from 10 buyers. Band Protocol has gone by way of 4 funding rounds, and their final funding spherical was in 2019. Their buyers are Binance Labs, Sequoia Capital India, Binance Labs, ZBS Capital, Yield Ventures, Woodstock, The Spartan Group, Iconium, Dunamu & Companions, SeaX Ventures.
What Drawback Does Band Protocol Intention to Resolve?
There are a number of information suppliers out there. However there’s no manner of guaranteeing the authenticity of information. Actual-world information is essential for the success of many DeFi protocols, however trusting a centralized information supplier can show to be counter-effective for sensible contracts.
To make sure true decentralization of DeFi protocols, they will entry actually decentralized oracles similar to Band Protocol. Contemplating their decentralized nature of operations, decentralized oracles are higher for feeding real-world information to their sensible contracts in comparison with the centralized oracles. On their web site, Band Protocol sums up fairly completely what they do:
“Band Protocol resolves the centralizing impact of the oracle downside by offering a strong, safe and performant manner for sensible contracts to work together with any off-chain info – maintained by group ruled information suppliers.”
The rising clout of decentralized purposes is making it apparent that the demand for decentralized oracles will stay excessive sooner or later as effectively. That’s the market that Band Protocol goals to seize with its decentralized cross-chain oracle community. The core imaginative and prescient of Band Protocol is to make real-world information simply obtainable to decentralized purposes. They guarantee information integrity by way of financial means, particularly by way of its BAND tokens.
How Does Band Protocol Work?
We already know that Band Protocol feeds off-chain information to sensible contracts through APIs. So, what does this precisely imply? It signifies that Band Protocol serves blockchain queries with off-chain information, which it feeds to the sensible contracts by way of its decentralized information oracles. Knowledge integrity is essential for sensible contracts, and Band Protocol makes use of proof of information integrity to make sure the info that its decentralized oracles feed into sensible contracts just isn’t compromised.
Right here’s an fascinating factor about Band Protocol. The decentralized purposes or dApps don’t depend on oracles that exist exterior the blockchain. As an alternative, the dApps faucet into the community-managed sensible contract information factors of Band Protocol. The builders and dApp customers observe a particular framework to handle and function the info sources. This framework ensures that the info is correct and dependable.
It could be becoming to elucidate how Band Protocol is completely different from Chainlink, the largest identify within the blockchain oracle house. Any sensible contract that interacts with Chainlink must stay in asynchronous interplay with the info layers. There are some drawbacks to the way in which sensible contracts work together with Chainlink. Essentially the most outstanding disadvantage is the delay in transactions because it entails sequential execution and affirmation of transactions.
Band Protocol, alternatively, has made the method easier. Different options obtainable at present require dApps to run information question for information, whereas Band Protocol feeds information to a number of dApps from the identical information units as information is already obtainable.
The Knowledge Reliability Course of at Band Protocol
Within the Band Protocol ecosystem, the collective strategy of curating, controlling, and managing information is named Token Curate Knowledge Sources (TCD). It’s good for gathering goal information like blockchain transactions, inventory costs, and extra. It leverages a number of information units to gather such intensive information.
You will need to word that Band Protocol doesn’t have a say or have any management over the way in which the info can be handled. Band Protocol is just appearing as a platform of kinds the place its group makes choices on information curation & therapy.
Anybody who holds BAND tokens, the native token of Band Protocol, can turn out to be a knowledge supplier. All they need to do is feed information into a knowledge supply contract of Band Protocol. Then, they have to deploy a minimal quantity of tokens to qualify for changing into a knowledge supplier, which can act as collateral. This collateral ensures that the info supplier stays trustworthy and solely gives intact information to the system. As for dApps, they will entry the info by way of the info aggregator feeds of Band Protocol.
BAND Tokens
In 2019, Band Protocol carried out an preliminary coin providing for its BAND tokens, producing $5.85 million within the course of. Band Protocol’s ICO happened on Binance Launchpad. On the time of the ICO of its BAND tokens, the provision of BAND tokens was 100 million. That they had additionally bought $2 million price of BAND tokens by way of a non-public sale.
As per sources, greater than 12 million BAND tokens had been bought throughout the ICO of BAND tokens. The early buyers of Band Protocol acquired 27% of the BAND token provide. Their improvement staff acquired 22% of BAND tokens for the event of Band Protocol, whereas 25% of BAND’s provide was saved apart for the Band Protocol ecosystem.
There are a number of use circumstances of BAND tokens. The primary use case is for changing into a validator on the Band Protocol community. Anybody who needs to turn out to be a validator on Band Protocol has to deposit collateral or stake BAND tokens. The BAND tokens additionally energy the financial system of the Band Protocol ecosystem. Anybody who holds BAND tokens can even obtain voting rights. They are going to have a say in any upgrades or modifications that can happen within the Band Protocol.
Learn how to Purchase Band Protocol (BAND)
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Learn how to Retailer Band Protocol (BAND)
Should you search to make a serious funding in BAND or if you’re planning on HODLing this crypto for lengthy durations of time, a hardware wallet is the best choice. {Hardware} wallets hold your crypto saved offline in “chilly storage.” This technique makes it unattainable for on-line threats to entry your holdings. The Ledger Nano S or the extra superior Ledger Nano X each help Band Protocol (BAND).
Band Protocol on its method to Change into the Go-to Decentralized Oracle Supplier
The world of decentralized finance is rising quickly. Such is a progress that inside one 12 months, the entire worth locked (TVL) decentralized finance touched $40 billion. Sure, you learn that proper! In February 2020, the entire TVL of decentralized purposes stood at solely $1 billion. Many specialists additionally value the DeFi sector at $100 billion.
Contemplating that the standard monetary market is anticipated to achieve a market size of $26.5 trillion by 2022, we will say that the DeFi house has even barely scratched the floor. There’s a great distance forward. Throughout DeFi’s journey to achieve a market measurement of a trillion-dollar or extra, decentralized oracle suppliers like Band Protocol will play a vital position. With out uninterrupted entry to real-world information, decentralized purposes can’t obtain their true potential. That’s the reason Band Protocol is right here to remain and make a substantial affect within the DeFi house.
