Band Protocol serves as an interface linking real-world data and a decentralized application’s off-chain smart contract source. Users can benefit from a number of use cases and rewards.
Btse is excited to add Band Protocol (BAND) to its growing list of digital assets available for users to trade on its exchange.
Band Protocol as a project incentivizes its community of users to feed actual data to blockchain-based decentralized applications (dApps). If a dApp programmer desires to invite their customers to place bets on the prospective value of gold, for instance, the programmer must predict the value at the chosen future date.
Band Protocol offers this service to ensure that its smart contracts are executed properly using a technology that encourages a specific category of users, called validators, to contribute and validate external data.
Band Protocol is often called the “decentralized oracle” platform, a term also used to characterize blockchains, like Chainlink, that reward participants for providing verified data. It was initially created on the Ethereum blockchain, but later constructed its network utilizing the Cosmos infrastructure to channel data between many blockchains, such as Cosmos blockchain.
How Does Band Protocol Operate?
Band Protocol serves as an interface linking a dApp’s blockchain-based smart contract and a real-world data source. Several dApps depend on this data to operate and engage customers, and they rely on up-to-date data in order to do so.
The BandChain network is utilized to connect smart contracts to off-chain data resources, with a distributed platform of validators creating logs to verify those operations.
Band Protocol’s own technology and approach were validated early on with an initial exchange offering in 2019 and $3 million in seed funding backed by investors including Sequoia India, SeaX and others.
|Did You Know?
The co-founders of Band Protocol initially learned about cryptocurrency in 2014, when the Massachusetts Institute of Technology gave away a $100 BTC airdrop to participants for completing a questionnaire.
What Makes the Project Unique?
Several oracle platforms are solely linked to Ethereum, which is sensible given that it is the backbone of the bulk of decentralized applications. Band Protocol, on the other hand, is also compatible with other blockchains like Cosmos and serves as a critical piece of technology for dApps created elsewhere.
Band Protocol can be a powerful instrument for enabling a wider decentralized application ecosystem outside ETH as dApp creators turn to other blockchain systems for faster transactions and reduced costs.
Alongside industry heavyweights like Microsoft and Google, Band Protocol has entered the OpenAPI race to help create guidelines for application programming interfaces, which are what it utilizes to retrieve data from external resources and link them to blockchain applications.
Token Use Cases — and Advantages
Decentralized applications utilize Band Protocol to get actual data outside the chain, and there are benefits to holding and utilizing the BAND token for the everyday user. It can be used to settle blockchain operations, manage the network, and compensate validators for creating fresh blocks. To receive rewards, anybody can invest in BAND and assign it to a validator.
The BAND token has a market cap of nearly $170 million and 0.01% market cap dominance as of July 20, according to CoinGecko. Its circulating supply is just over 35 million out of a max supply of 100 million. BAND’s market price is $4.69 (July 20), with an all-time high of $22.83 on April 15 this year.
BAND utilizes an inflationary framework on coins that are developed to slowly reduce their valuation. This is intended to incentivize users to participate in a staking system to help them earn additional tokens via incentives and to invest in BAND tokens. There’s a general target of having two-thirds of all BAND tokens invested at any given moment; should the staking ratio dip below that threshold, the inflation rate would gradually increase to 20%.
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