Homework Task (Season 3/Week-7)

Develop in a detailed and extensive way a post explaining some other Blockchain Oracle. (Chainlink will not be allowed)

What are the topics you should cover as a minimum?

1-History and Description. Does it have any token or cryptocurrency associated? Explain

2-Functionalities and real-life applications

3-Pros and Cons

4-Future developments and new projects

What is a Blockchain Oracle

A blockchain oracle is an entity which connects the blockchain with offline data. In a decentralized oracle every independent node or oracle in the decentralized oracle network independently gets data from an off chain source and brings it into the blockchain. Smart contracts need real world data to contribute to their practical cases but they are unable to access offcain data because of the blockchain protocol restrictions. This limits the functionality scope of smart contracts. Oracles act as the mediator here sourcing and supplying real world data to the blockchain sart contracts. So they operate successfully for real world cases.

Importance of Blockchain Oracles

Oracle blockchain platform has all elements required to support a blockchain network. This includes blockchain network consoles to support integrated operations. So it helps to develop applications within minutes and enables to complete a proof of concept within a short period of time. As oracle blockchain platform is a part of the oracle cloud platform it is equipped with underlying cloud services including containers, compute, storage, identity cloud services for authentication, object store for embedded archiving, and management and log analytics for operations and troubleshooting.

The on-chain off-chain data communication enables complex decision making, and has use cases in the sectors such as finance, securities, exchange services, smart-wallets, recovery, predictions, gaming and gambling.

BAND PROTOCOL (BAND)

Origin of Band Protocol

Band Protocol was launched by three founders in Thailand. They are CEO Soravis Srinawakoon, Sorawit Suriyakarn and Paul Nattapatsiri holding different designations.

In September 2019 Band protocol was launched as an ERC-20 project in the Ethereum blockchain. In June 2020 it has transitioned to a cosmos network with the release of band protocol 2.0. The oracle nodes on band chain not only relay data but are also involved in block production. It also intends to provide reliable transaction speed and scalability.

What is Band Protocol

Band Protocol is a decentralized oracle. It is the biggest competitor to chainlink. Band protocol is considered as the second most valuable data oracle project. It is a cross chain that provides and manages real world data to smart contracts. Band Protocol enable secure and reliable data feed which is known be without a single point of failure.

Investors

Band Protocol being one of the successful oracle programs has now gained many high ranking investors. BINANCE, ICONIUM, SNZ , SeaX Ventures etc... are investors from all around the world.

Band Protocol Whitepaper

Tokens

BAND is the native token of bandchain. Even though it was created as an ERC-20 token now it is available as both ERC-20 and bandchain native token. The validators are required to stake BAND with a higher stake. Underperforming or fraud actors will result in slashing their tokens. These token are used to pay as a query fee, transaction and for data access behind paywall. Token holders can vote for the upgrades and parameter changes of the Bandchain. The tokens were initially distributed in the forms of two ICOs and an IEO.

Band Protocol Whitepaper

Supply Schedule

The tokens were distributed in the following manner.

• Seed Sale Investors: 10.00% of the total token supply
• Private Sale Investors: 5.00% of the total token supply
• Public Sale Investors: 12.37% of the total token supply
• Ecosystem: 25.63% of the total token supply
• Team 20% of the total token supply
• Advisors: 5.00% of the total token supply
• Foundation: 22.00% of the total token supply

50% of all BandChain transaction fees are burned.

Band Protocol Whitepaper

Technology Used

The band Protocols blockchain, “”Bandchain” uses delegated proof of stake to secure the network. It allows developers to customize and develop data oracle strips that allow smart contracts to connect to external data sources and specify security parameter and aggregation methods. Distributed pools of validators operate the Bandchain. Validators are selected based on the weighted average of their stake to provide the data when a smart contract data request is submitted. The top 100 validators are eligible to receive and act on oracle requests.
Both validators and delegators can vote or be against the proposed changes to the protocol.
The overview of the Band Protocol is as below.

Band Protocol Whitepaper

Functionality of Band Protocol

Band protocol connects on chain with off chain. It provides a decentralized data oracle by having data for a blockchain query. It uses delegated proof of interest. For web 3.0 applications it aims to be the data infrastructure layer. This provides off chain data to smart contracts. With this Band protocol any user can generate passive income by staking BAND.

Band Protocol provides solutions for the existing DApp problems. Dapps derectly use band protocol’s smart contract data points instead of oracles outside the blockchain when accessing external data. Band’s data feeds provide DApp users a framework to operate and manage the data sources themselves. Oracle services are being increasingly important as a result of emergence of DApps.

There is a community method to control andmanage data collectively. It helps to combine objective information with data sets such as asset prices, blockchain transactions and real world events. It is known as “Token curate data sources.” Oracles are managed by its dPoS consensus mechanism.

Band Protocol Whitepaper

Advantages and Disadvantages of Band Protocol

Advantages

• Band is a fully decentralized oracle protocol where the decision making power is in the hands of users. BAND is available for investments at crypto exchanges.
• This is the most trustworthy and reliable protocol after chainlink.
• All stored data are verified and cannot be changed.
• The band protocol gives many development opportunities for DeFi systems.
• This protocol is still a growing platform will reach new milestones in the future.

Disadvantages

• As it is a new developing project there are developed competitors.
• As this is a fully decentralized protocol fraud users may misuse this.

Future Development and New Projects

There are two milestones to achieve in the future as stated in the Protocol whitepaper.

01.Laozi

• Supports querying data sources while collecting fees to data source owners.
• Support function invokes between different oracle scripts.
• Improve compatibility with multiple blockchains.

02.Confucious

• Supports more payment options in the eco system.
• Supports peer-peer authentication gateway.
• Release standard for smart contract interoperability with enterprise softwares.

CONCLUSION

Blockchain oracles are immediate, obvious applications in Fintech. Band Protocol is a trustworthy oracle which also helps the DApp issues. Band protocol has tokens and the Band tokens can be stored in any cryptocurrency wallet. The Bandchain network is secured by Delegated proof of stake. Band is currently ranked in the #153. Thank you professor @allbert for teaching this amazing lesson. Thank you for reading my post.