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Last updated: Aug 14, 2023
Band Protocol is a decentralized cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. The protocol was originally built on the Ethereum blockchain, but the mainnet was eventually launched in October 2020 on the BandChain, a blockchain-based on Cosmos-SDK, which is compatible with most smart contract and blockchain development platforms. Its flexible design allows developers to query any range of data types, including both online data (token balances, transaction data, etc.), and real-world events (sports scores, flight status, weather, etc.), as well as any data that is available online or on any other medium (stock/token prices, random numbers, etc.)
The Band protocol is designed to offload heavy and resource-intensive tasks from smart contract platforms by modularizing it. This is meant to prevent network congestion and lower transaction fees while at the same time the same data points can be packaged, used, and verified efficiently across multiple blockchains.
The Band oracle acts as a middle layer operating between smart contract platforms and various data providers. The main tasks of the oracle are to handle data requests coming from dApps, query the data from the corresponding providers, and then report the results back to the dApp.
Bandchain prides itself on its decentralization, achieved through the introduction of maximum redundancy on two separate layers in the infrastructure design, these are BandChain validators - representing the consensus level and a data source level. When a data request is made, the validators query data from multiple sources which act as another layer of redundancy.
When setting up the BandChain Oracle, users are provided with what is claimed to be maximum customization and flexibility for the user to query and compute their desired data. This happens by allowing users to specify the data sources from which BandChain’s validators retrieve data. The other part of the oracle script specifies the method in which to aggregate the result from the data sources into the final result and is also fully customizable to the user’s preferences.
Unlike general-purpose blockchains, BandChain is specifically designed to query and compute oracle data. The BandChain oracle acts as an intermediate layer between smart contract platforms or decentralized applications and various data providers.
The Band Protocol app oracle functions are to 1) process data requests coming from dApps, 2) query the data from the relevant vendors, and 3) report the results back to the application. The results reported by the validators are also taken from multiple data sources, providing greater reliability. And the entire data request stream is publicly available for review, verification, and auditing.
The Band Protocol fees can be paid on a per-request basis. Detailed information on each of the possible plans is available on the platform’s website.
BAND is a native token of the Band Protocol. It is available both on the Ethereum and BandChain networks.
BAND is used to protect and power the decentralized oracle network — all validators are required to stake BAND, with a higher stake equating to a high probability of being selected to fulfill data requests. Underperforming or malicious actors will result in having their tokens slashed. Another way the token is used is for voting on the protocol updates and changes.
The network also charges a fee in BAND tokens, with 2% of the total fee per block being transferred to a community fund to ensure the long-term sustainability of the ecosystem.
The token has an inflationary model. The annual inflation rate ranges from 7% to 20% and adjusts to a target to deliver 66% of the total number of BAND tokens.
Band Protocol was founded by Soravis Srinawakoon (CEO), who has a background in management and software development, Paul Nattapatsiri (CPO), a software engineer with experience in creating crypto games and Sorawit Suriyakarn (CTO), also a software engineer and a former Hudson River Trading core developer. Other members of the Band Protocol team include CFO Bun Uthaitirat, Atchanata Klunrit who is responsible for the operation and legal office, as well as developers Kanisorn Thongprapaisaeng and Prin Rangsiruji. Band Protocol audits can be found in the protocol dashboard on this webpage.
Multiple companies formed partnerships with Band Protocol to receive real-world data. Among them are Google Cloud, Fantom, MCDEX, NEAR, Polygon, Equilibrium, Injective Protocol, Krystal, ICONFi, Graviton, Alpha Finance, Coin98 Wallet, Mirror Protocol V2, Omm Finance, Eden Network, Cronos, Beta Finance, 0Chain, Boba Network, Moonriver, NASDEX, Nervos, Oasis Network, and QANplatform.
The current Band Protocol roadmap includes releasing products such as Band Standard Dataset - a tool for developers which grants them access to more than 250 feeds in different asset cases. BandChain Phase 2 Gateway is also being worked on, this product is meant to allow data providers to easily participate in supplying data on BandChain and receive on-chain revenue in Band tokens. A Verifiable Random Function (VRF) will be released to capture the need of the fastly growing NFT and GameFi space.
The Band Protocol team is also working on building Band Oracle v3. The next-generation oracle is envisioned to have key features such as higher throughput, lower latency, cheaper base fees, and extreme portability.
The long-term goal of Band Protocol for the next 3-5 years is said to expand deeper into blockchain technology beyond providing oracle services. The team plans to create a so-called BandBuilderVerse to take on the next mission of building a universe of high-quality development tools for Web3 builders. Although still not finished, the list of products to be worked on includes Band L2 Scalability Solution, Band Asset Bridge, Band Data Indexer, Band dApp Operation, and Security Monitoring, and Band Training and Certificate Program.
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