If you are new to the crypto space, then chances are you haven’t heard about Band Protocol. The band is basically a cryptocurrency that describes itself as “a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts.”
The crypto actually allows blockchain to simply access data like weather and stock prices that are definitely available through API. Please note that Coinbase just supports the Ban token that is running on ERC-20 or Ethereum.
Today, we will talk about Band Protocol – stay tuned to find out more.
What Is Band Protocol?
Band coins are a cryptocurrency, but then what is Band Protocol? It’s a cross-chain data oracle platform built for connecting APIs and real-world data to smart contracts. The Blockchain oracles happen to be entities that connect blockchains to different external systems, enabling smart contracts to actually execute, depending on real-world outputs and inputs.
The History Of Band Protocol:
Cofounded by Sorawit Suriyakarn, Paul Chonpimai, and Soravis Srinawakoon in 2017, Band Protocol is a cross-chain data oracle. Currently, the CEO of Ban Protocol is Srinawakoon, while Chonpimai happens to be the network’s CPO and was formerly a web developer at Turfmapp and also an engineer at Tripadvisor.
The protocol’s CTO is Suriyakarn. Initially, in September 2019, Band Protocol was actually launched on the Ethereum blockchain with an ERC20.
Objectives Of Band Protocol:
Before you get excited about how to buy band protocol, let’s talk about the objectives of Band Protocol.
According to the official documents, Band Protocol hopes to actually achieve the following objectives.
1. Speed And Scalability:
The system needs to be capable of serving large amounts of information requests to different public blockchains accompanied by high output and minimal latency. The expected time for reactions must be in the basic range of seconds.
2. Cross-Chain Compatibility:
The system must be capable of serving information to the majority of publicly available blockchains – the system is also blockchain-agnostic. The simple verification of information validity on the blockchain targeted must be trustless and efficient.
3. Data Flexibility:
The system needs to be versatile as well as capable of supporting different methods of obtaining as well as aggregating data consisting of both publicly, permissionless available data protected by proper centralized parties.
Two of the most vital components of Band Protocol are the BandChain Oracle and BandChain. The BandChain happens to be a high-performance blockchain specially designed for data oracle while the solution for BandChain oracle functions like an intermediary layer located between decentralized apps or smart contract platforms and different data suppliers.
How Are New Band Tokens Created?
Before you get excited about Band Protocol price predictions, let’s address another issue – how are the new tokens created?
Bandchain can be defined as a Comos-based blockchain. It used a delegate PoF consensus mechanism for securing a decentralized oracle network. The validators of BandChain process transactions as well as produce new blocks.
As a result, the validators can easily earn some Band tokens as a normal reward to execute block minting. At the same time, the rewards for processing the transactions actually come from a standard fee that each validator can set.
In addition, a portion of the total reward is easily sent to the community’s fund pool. The users who don’t want to become validators can also stake their holding on already existing validators.
How Many Band Tokens Are There?
There are one billion Band Tokens in supply at the moment.
How To Buy Bandchain Protocol Tokens?
You have multiple options when it comes to BAND or Bandchain Protocol, including Coinbase. You can easily purchase Band Protocl on the Coinbase app or Coinbase.com, anywhere Coinbase is actually available.
Problems Of Band Protocol:
Are you looking up ‘band protocol staking?’ Then stop!
To begin, smart contracts are like regular contracts. Instead of being actually drafted on paper, these smart contracts run in the protocol formats just like regular contracts. The contracts excel at verifiable transactions and immutable storage, but their usage was limited previously due to their easy access to external information.
A majority of blockchains are not familiar with what is really going on in the actual world and can’t access information that is not really native to the chain. While most existing contract platforms enable trustless implementation of arbitrary algorithms, they do lack access to data from the real world.
Naturally, this constraint ends up preventing smart contracts from actually reaching their complete potential. BandChain was developed to address this particular issue by connecting public blockchains to off-chain, real-world data.
There have been several attempts at finding the right solutions. However, three major limitations are persistent.
Modern data solutions like Application Programming Interfaces or API feeds and some other Oracle systems were built to be centralized. This not only contradicts the concepts of distrust and decentralization, but it also ends up constituting potential security issues, data tampering, and outages for all users.
2. Network Congestion:
A majority of Oracle solutions usually suffer from network congestion due to this particular solution being literally on the same blockchain, just like the application. As a result, in this case, the blockchain network ends up becoming overburdened with several outstanding transactions, and the request for data transactions will also get delayed in the process.
3. High Cost:
They are expensive. This is simply because of the costs of deploying, developing, and researching the solution, as well as the various expenses connected with sustaining and operating the same over time.
The Advantages Of Band Protocol:
As per the whitepaper, the BandChain Protocol has the following benefits over the other oracles. These are as follows,
BeandChain Protocol is decentralized by the implementation of maximum redundancy on two distinctive layers of the complete infrastructure design. These two layers are the data source level and BandChain validators or the consensus level.
The platform’s source of data scripts. Oracle scripts allow users to actually query as well as compute their preferred information feed with the help of maximum freedom and customization.
Band Protocol’s oracle allows anyone interested in actually requesting information to do so only when it is necessary to pay the corresponding fees, and that is on a per-request basis. This is relatively more economical than actually updating the expenses of a whole collection of assets when you might just need the most recent cost of one.
And It’s A Wrap!
And it’s a wrap on Band Protocol. It’s a relatively new cryptocurrency in the crypto space. So, if you are very new to the world of crypto, then we would recommend you start with more well-known options and wait for some time before investing in a relatively new coin on the block.
But do tell us what you think. Feel free to share your thoughts, opinions, and experiences with new cryptos in the market!