Crypto Academy / Season 3 / Week 7 - Homework Post for @allbert : Blockchain Oracle
In this post, I am here to submit my Crypto Academy S3 Task 7, which I have carried as required by prof. @allbert.
BAND PROTOCOL
An Oracle acts as a bridge among specific worlds or allows connecting to the decentralized blockchain with the outside world and the centralized web. So simply, the same goes for the BAND PROTOCOL. Basically, Band Protocol is a software program or a platform that totals and permits smart contracts to access the data from real outside world data (centralized world) and APIs.
However, smart contracts aren't as smart as they lack in accessing data from the real world. But in the Band Protocol point of view, this protocol is made to overcome this shortcoming of smart contracts, by using Band Chain (its own blockchain). Band Protocol is likewise taken into consideration by a Chainlink competitor at a glance.
Band Protocol is a decentralized cross-chain data oracle platform for web 3.0 applications that were initially running on the Ethereum Blockchain. But from the 6th of June 2020, it runs on BandChain, an impartial DPoS (Delegated Proof-of-Stake) blockchain, created using COSMOS technology. Band Protocol has its own token called BAND which presently has a rate of $7.22 with a market capitalization of $ 261.83 million (as of 09 Aug 2021).
History & Description of BAND PROTOCOL
Band Protocol is a completely decentralized cross-chain data oracle platform developed by Soravis Srinawakoon (CEO), Sorawit Suriyakarn (CTO) and, Paul Chonpimai (CPO), and a named start-up based in Thailand. Its founders and team members worked and established this protocol in the year 2017.
In the past, Soravis Srinawakoon used to work in BCG Group as Management Consultant Software Engineer. He found many start-ups while working in BCG, after that he got himself involved in the crypto world. He runs a project called casino Esque games on a crypto gambling website designed by him & his company for a short time.
Later, when this gambling website was booming, Soravis sold it and he and his team decided to develop a new, fast and reliable project. So Soravis invested his funds in a new project, with his team designing a protocol called BAND PROTOCOL, mainly featuring 'Oracle' which is a Blockchain oracle in 2017.
And BAND PROTOCOL's Mainnet (ERC-20 Token) was originally launched on the Ethereum Blockchain on 30 September 2019 with support from Sequoia Capital. But later, Band Protocol launched its mainnet on the 6th of June 2020, known as BandChain, build using the COSMOS SDK network, supported by Binance, Sequoia Capital, Dunamu & Partners, etc.
BandChain's Mainnet also known as BAND PROTOCOL V2.0 was completely released in four phases which are as follows :
Phase 0 - Basic version of BandChain launched on June 6, 2020; allows the transfer & staking of BAND Tokens.
Phase 1 - Updated version of BandChain launched on October 15, 2020; Supports creation of public and free data sources with customizable data without allowing Oracle scripts.
Phase 2 - Enables API providers to collect their revenue on-chain and allows API providers to commercialize their data on-chain.
Phase 3 - Allows developers to pay or subscribe for any token of their choice and focuses on increasing the system's payment options.
In the year 2020, Band Token set a remarkable record by directly pumping from a price of less than a dollar to a high of $16. But in January 2021, the Band token price gradually declined and stood at around $9.
But God wanted something else. Once again the price of the Band Token made a remarkable record by jumping to a high of $20.77 on 13 February 2021. The price of the Band Token is expected to pump up to $30 by the end of 2021 which may be hit more than $200, by 2025.
How does it work?
Data oracle is a medium that makes Web 2.0 data interoperable with Web 3.0 applications. As Web 2.0 is not automated, it is static which cannot interact with the application directly. Whereas Web 3.0 is dynamic as well as automated, it operates with smart contracts. So for Web 2.0 data to interact with Web 3.0, the solution for deFi, Band Protocol is needed.
Now, Band Protocol acts as a third party between legacy data sources and decentralized blockchains. Band Protocol hires some candidates as validators who work to provide correct and accurate data. This whole process is something like this which is given below.
- Data required for Defi, Layer 2
- Request the Band Protocol
- Band Protocol will query the data from web2.0
- Obtain the Data
- Assimilate the Data
- Provide the Data on-chain to reach a consensus
- Use the data oracle for Defi and then record the transaction on-chain in Layer 1.
The BAND PROTOCOL ( BAND ) Token
Band Protocol has its own token known as BAND. BAND is a native token of the Band protocol that was first launched on the Ethereum network as an ERC 20 token but is now available for both (ERC 20 & Bandchain) with a total token supply of 100 Million tokens. Anyways, BAND Tokens were first distributed following an ICO in August 2018.
Later, Simply BAND Tokens were originally distributed in the form of airdrops and lotteries in three token sale rounds on Binance Launchpad Sale following an IEO (initial exchange offering) after its release in September 2019. In which, a total of 27.37% tokens of the total supply were distributed during Binance Launchpad Sale.
At the time of the sale, the BAND rate was set at $0.473 with a market supply of $47.3M. However, after these three token sale rounds, the tokens were distributed to different departments of the protocol itself which are as follows; A total of 98% tokens of total supply are distributed to stakers. ( Three token sale rounds - Seed, Private & Public )
Uses of BAND Tokens -
- Band tokens are often used for staking, pay transaction fees & query fees.
- Users of the Band Protocol who hold the BAND token have the power of decision-making and allow the protocol holders to vote for protocol upgrades.
- Band tokens can be used in smaller forms such as in transactions with traders.
- Band tokens are used to provide strength and security to the decentralized oracle network so that its users do not have any possibility of trouble.
- Bands tokens are used as collateral for the issuance of dataset tokens, on-chain governance, etc.
| BAND Token value | $7.22 (as of 09/08/2021) |
|---|---|
| Rank on CMC | 159 |
| 24h low | $6.75 |
| 24h high | $7.53 |
| Market Cap. | $254,043,743 |
| Circulating Supply | 35,191,821 BAND |
| Max. Supply | 100,000,000 |
Functionalities and real-life applications
Functionalities
Band protocol is a means where the off-chain data is assimilated and produced in a decentralized application through a smart contract
For instance, let's say I need data from Bloomberg, Reuters, Binance, Coinmarketcap, etc. They are all web 2.0 things that can not interact with decentralized applications. So what will Band protocol will do is that first.
(1) Query the data
(2) Get the data and assimilate the data
(3) validate the data
(4) Achieve the data oracle on-chain
(5) Utilize the data and record it in the first layers through use-case/transaction.
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The idea is that Band protocol becomes means to collect the data from web 2.0 and provide those data to reach a state in defi applications through a smart contract.
Applications
Decentralized application blockchain-based are ideally web 3.0 apps, so a web 2.0 app data can not interact with web 3.0 thing. Band protocol acts as a medium to query the data from web 2.0 and produce the through a smart contract for DeFi and then finally the same is recorded in Layer-1 on-chain
Some of the well-recognized examples of Web3.0 are "Wolfram Alpha" and "Apple's Siri", these two applications gather or aggregate information at a very large scale and provide relevantly or asked information to their users. Besides these applications, "Google" and "IBM" can be considered as an example or application of Band Protocol as they are based on Web3.0 technology.
Pros & Cons
Pros -
(1) Decision-making power - As we know, BAND protocol is a fully open decentralized cross-chain oracle platform, so this protocol transfers the power of decision-making to its users.
(2) Runs on its own Blockchain - BAND Protocol replaced the 'community-focused ethos' which was the 'Ethereum based' version with its own Blockchain known as BandChain, an independent DPoS, build on COSMOS technology, which allows avoiding the traffic on the Ethereum Network.
(3) Speed & Efficiency - Band Protocol 2.0 (BandChain) has the capability to process 50 transactions simultaneously in only one second. This makes this protocol very fast and accurate.
(4) Provides real-time data - As Band Protocol is a decentralized blockchain oracle network that acts as a bridge between two worlds. It connects the decentralized blockchain to the outside world through Smart contracts. So this provides real-time data information like sporting events/results, token values & insurance data, etc.
(5) Simple Smart contract integration - BAND Protocol is featured for very simple 'smart contract' integration to correct the flaws in smart contracts. That's why it is a strong competitor to Chainlink and one of the top 5 Blockchain oracles in 2021.
(6) Unique in itself - By moving the Band Protocol from the Ethereum Blockchain, creating its own blockchain, and running on it, makes it unique in itself. This protocol is faster and less expensive than other oracles as other oracles run on a separate network from them.
Cons -
(1) Less Market Cap - However, Band Protocol is a cutting-edge technology that has greatly empowered its BAND tokens. But its market cap ($265.80 M) is very less as compared to other big Oracles.
(2) Insufficient Security & error possibilities - As Band protocol is a new project which is running on a new blockchain. If it was currently running on the Ethereum blockchain, there would be no possibility of less Security & errors. But being new, it is not known whether the security will be efficient or not. And there is always the problem of error because of automated smart contracts.
(3) Getting caught while copying Chainlink VRF - In the year 2020, in the last week of May Band protocol was caught while trying to copy Chainlink VRF on their Github repo. Chainlink Alert revealed this by tweeting about this case.
(4) Lack of Team members - Band Protocol has made a mark in the Oracle Arena since its release, and its cutting-edge technology. But there is a shortage of members in its team. Although 20 members and 3 founders have taken this protocol a long way, they are not capable of fully documenting this protocol. Although they are working on it, and in the future, this protocol will become more popular & popular.
Future developments and new projects
Future developments
We are living in a world where everyone needs to improve their future. Whether it is a human being, a technology, a device, or any other thing that is located in this world. So the same goes for the Band Protocol. At the beginning of the year 2021, a Roadmap for Band Protocol 2021 appeared from Band Protocol. In which they are releasing Phase 2 where the main focus of the team is on integration to unlock virtually all data across the internet for secure use of blockchain and decentralized applications.
Since its inception, Band Protocol has provided reliable data over the open internet with speed and low cost for dApps across multiple blockchains. Their goal for the future is to make Band Protocol a fully decentralized oracle for scalable blockchain applications supplying end-to-end flexibility.
By the end of the year 2021, The developers & team members of Band Protocol might be accomplished of merging Band Protocol in a fully documented manner & self-serviced manner. Apart from this, they are also working to increase their team members. This is seen as a pity, as the Band Protocol team lacks members. Therefore, they are developing the Band Protocol in such a way that it becomes self-sufficient and trustworthy and provides high-quality, tamperproof data to Smart contracts.
Apart from this, many future developments have been analyzed in the roadmap of Band Protocol 2021 which are as follows :
- Strengthening Band Oracle Infrastructure for Layer-1 & Layer-2
- Adding Cosmos IBC Compatibility to BandChain P1
- Developing On-chain Verifiable Random Functions.
- Releasing BandChain P2: Commercialization of On-chain Data
- Q1-Q2: Securing Power Partners & Expansion of Product Offerings
- Q3-Q4: Institutional and Enterprise Partnerships Roadmap
New Projects
Band Protocol has worked on many projects since its inception. Its biggest project was to build its own blockchain BandChain, which is a successful project and has proved to be very effective.
Currently, this protocol is working on many new projects, in which the strongest project right now is integration with Google Cloud. However, a post about this project came out from Band Protocol's official Twitter account on April 15, 2021. where they talk about the integration of Google Cloud & Band Protocol.
According to the article of this tweet, their main focus behind integrating Band Protocol with Google is to enable immediate and accurate analysis of financial time series data. For this integration, Google Cloud Platform offers over 160 popular development stacks and solutions. And Band Protocol is also empowering its developers to use a decentralized oracle for any external data source.
Recently, On 6th August 2021, A tweet came out from Band Protocol's official Twitter account Where he made an official announcement, that Band Protocol will be listed on Kraken which is a US-based cryptocurrency trading platform, and the trading will be started from today (10th August). In addition to bands, INJ, MIR and 1INCH tokens are also going to be listed on Kraken.
As recently as 13 hours ago, Band Protocol made an announcement from their official account on Twitter that they are entering into a strategic partnership with the Defi platform FantomFDN. It was mentioned in this article that Band Protocol will create a node on Fantom Opera Mainnet which has already collected 1.46 FTM from the community.
Conclusion-
In the end, I would like to say that it was a wonderful experience with Blockchain oracle. Here I analyzed Band Protocol and it was great to know about it. Band Protocol's token BAND has set several remarkable records in a short period of time. This protocol has shaken other Oracles in the Oracle Arena by creating their own Blockchain. Overall it was a wonderful pleasure and experience. This was completely new to me. Lastly, I would like to say thank you to prof. @allbert that he allowed us to learn about Blockchain Oracle.
Thank You
Hello, @dharamps Thank you for participating in Steemit Crypto Academy season 3 week 7.
However, In the second question, I would like you to go a bit deeper in the functionalities and applications.
Thank you prof.