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What Is Band Protocol (BAND)?

What Is Band Protocol (BAND)?


TL;DR

Band Protocol (BAND) is an information oracle platform that gives companies to a number of initiatives throughout completely different blockchains. It makes use of a Delegated Proof-of-Stake consensus mechanism the place delegators, validators, and nodes stake the native token BAND to take part.

Requests for off-chain info are gathered by validators, dedicated to the chain, after which distributed to the requesting DApps.

Introduction

Blockchain and Decentralized Finance (DeFi) have modified the established order of the world’s monetary system inside ten years. However, one vital impediment Decentralized Application (DApp) builders face is accessing dependable, correct real-world information. These information sources are situated outdoors the blockchain and have to be built-in on-chain. To attempt to resolve this concern, oracles like Band Protocol have change into commonplace within the crypto ecosystem.

What is Band Protocol?

Band Protocol (BAND) is a cross-chain information oracle platform that aggregates real-world information and connects it to APIs and sensible contracts. Founded in 2017, Band Protocol allows info alternate between on-chain and off-chain information sources for DApps. Originally constructed on the Ethereum (ETH) blockchain, the protocol transitioned to the Cosmos network in June 2020 to decrease fuel charges and optimize prices. 

As an oracle community, Band Protocol is a intermediary between real-world, off-chain information and blockchains. Their service permits sensible contracts to execute based mostly on precise off-chain occasions and knowledge. Without dependable oracles, DApps battle to function in a trusted, decentralized method with clear info sources.

How does Band Protocol work?

Band protocol makes use of the unbiased BandChain blockchain constructed utilizing Cosmos SDK. Developers can use BandChain to develop customizable oracle scripts offering off-chain actual information for DApps and sensible contracts. Customizable oracle scripts embrace information, the info supply, the variety of validators required to report the info, and the methodology for aggregating the info.

Executing an oracle script begins the next stream:

1. A DApp requests information in response to its custom-made oracle script.

2. This request is obtained by a randomized set of validators, who reply by pulling information from the desired information supply.

3. Data studies from the completely different validators are aggregated in response to the custom-made oracle scripts.

4. This remaining aggregated information is completely saved on BandChain, and an oracle information proof is produced.

5. The validated oracle information is transferred to the DApps or blockchains that made the request.

What consensus mechanism does Band Protocol use?

Band Protocol makes use of its native BAND token and a Delegated Proof-of-Stake consensus mechanism to safe its oracle community. BandChain presently has over 90 skilled and group node operators engaged on the blockchain. Each node operator should stake BAND tokens on the community to disincentivize malicious conduct. As a reward for efficiently processing information requests, validators get a share of question charges and block rewards.

As a BAND token holder, there are two methods to take part within the community: as a validator or a delegator. Validators on the BandChain are additionally required to stake BAND tokens to make sure information accountability.

Token holders can both stake or delegate their tokens to validators to earn staking rewards and picked up information request charges. Furthermore, BAND tokens are additionally used for the protocol’s governance mechanism.

What are Band Protocol’s key objectives?

Most of Band Protocol’s engaging qualities come from its transition from Ethereum to Cosmos. The venture was created with three design objectives:

1. Speed and scalability – Serving a lot of information requests with minimal latency.

2. Cross-chain compatibility Being blockchain-agnostic and in a position to serve most publicly out there blockchains.

3. Data flexibility Supporting completely different strategies of retrieving and aggregating information with a generic system.

How does Band Protocol try to attain these objectives?

The Cosmos community’s distinctive IBC (Inter-Blockchain Communication) protocol offers speedy interoperability and autonomy for blockchains. This characteristic permits Band Protocol to service and companion with initiatives constructed on completely different networks, together with Ethereum, Fantom, Avalanche, and lots of extra. 

The Band Standard Dataset features a assortment of over 80 information feeds from a rising variety of information sources. These decentralized worth feeds permit DApp builders to be inventive, agile, and versatile when growing and deploying on the blockchain community.

Closing ideas

Band Protocol is a rising oracle answer supplier with a set concentrate on enabling Web3. Its goals of a quick, scalable, customizable and interoperable service ought to show engaging to builders that need to change into a part of the Web3 ecosystem.



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