Crypto Academy Season 3 Week 7 |Homework Post for professor {@allbert} ..Blockchain Oracle
Introduction to Blockchain oracle.
Oracle means a connecting link or a bridge . So blockchain oracle is a bridge between blockchain and outside world. We know that blockchain and smart contracts are smart by name and fame but they are not able to interpret external data as these contracts are not able to comprehend the language of external world. So need of oracle arises, that acts a middleman between external world and blockchain. Oracles also have role to play within the blockchain as most of the smart contracts are not able to interact with other networks, so oracles play their role to connect smart contracts of one network to the other. Oracle can deliver any information like temperatures, poll results , sports events etc from the external world to the blockchain and vice versa .
The oracle that transmit information
from external world to blockchain is technically known as inbound oracle and the oracle doing exactly opposite is known as outbound oracle. Oracle can be a hardware device like a thermal sensor or a software ( web based data source) depending upon the situation where oracles are put to use. As for regulatory authority of oracles is concerned, they can be centralised or decentralised with each having some pros and cons.
The project that we are going to discuss today is Band protocol -cross chain decentralised data oracle. Let's begin.
History and Description. Does it have any token or cryptocurrency associated? Explain.
Dating back to 2017 a team of multi talented individuals mastering multiple disciplines, Soravis Srinawakoon, Paul Chonpimai and Sorawit Suriyakarn, laid the corner stone of Band protocol on Etherium Blockchain matching ERC 20 standards. All the three were well verse with technology and were ahead of time as per their thinking capacity. They were able to spot the glitches like , void between real and technological world, misinformation, communication gaps etc and tried to give some solutions to these problems instead of complaining about these issues.
Band protocol no longer functions on Enterium blockchain but it has developed its own bandchain. The consensus algorithm followwd by bandchain is DPoS. So the inherent features or DPos are anchored to band too like being energy efficient and cost effective unlike PoW ( Proof of work) which consumes huge amount of energy and is expensive to set. Let's not forget scalability which is undoubtedly better in band.
source
The Cryptocureency linked with Bamdchain is Band. As for current coinmarketcap data of Band is concerned, its Rank is 155 amd price of each token now is $ 7.80. Market cap of $274,586,716 USD. and circulating supply of 35,191,821 coins. So the numerical figures are rock solid. Band token holders are given rights in DPoS to vote for validators who verify blocks and share rewards with token holders.
Functionalities and real-life applications.
The bandchain is secure, scalable, efficient blockchain oracle that acts as connecting link between
different blockchain networks and blockchain to external world. As mentioned earlier, the external world info like weather , sports, lottery system, election results etc. We have been able to understand one use case already amd that is DeFi .
Let me give you other real life examples to help understand the concept of Oracle better. Yesterday, my friend living in other country called me and we discussed about cricket match that's going to happen tomorrow between our countries. I was in favour of a team from my country and he was supporting team from his country and we put a bet about winner. We lolked our assets in a smart contract and eagerly wait for results to come. When results will come smart contract cannot access the results of the match. To release the funds some third party has to convey same to the smart contract and that thiid party is oracle. Oracle will be put to use, that will contact the trusted API and confirm the results of the match and deliver the same to the smart contract. Only then smart contract will be able to execute the transaction to one of us.
Let me give another example. As mentioned above about type of oracles. I mentioned hardware devices like thermal sensors. Use of these sensors can do wonders in supply chain management. Let me tell you how. In hospitals we vaccinate children and the vials that contain vaccine have thermo sensetive material labelled known as " vaccine vial monitor" that change its colour when the temperature of the vial increases and that gives a signal whether the vial should be used or discarded . But there is no authority outside hospital to monitor whether we are doing it in practical or not. If a theemosensetive oracle is attached to the vial and that Oracle is able to send message to the blockchain , that message can be read by all the users of the blockchain and therefore can be monitored by anyone. If the vaccine vial is crossing the temperature range on which it can be used, oracle will send message to the higher centres and they will take action in real time.
Similarly use of oracles could do wonders in supply chain management. Contrary to current system where a single supply chain unit is divided into multiple subsections that function individuals, oracle and blockchain integration has a potential to revolutionise this field.
Pros and Cons.
Pros
Being a cross chain oracle, bandchain allows interaction of contracts among networks within the blockchain.
Due to DPoS consensus algorithm followed by band, it is scalable, energy efficienct and , inexpensive.
Being decentralised, all the features inherent to decentralised system are anchored to band change toi like transparency, security, accountability and Auditablity.
Band allow token holders to choose validators of the transaction and share mining rewards in proportion to the amount of band tokens shared.
Bandchain is able to access information from public blockchains as well as centralized networks. Interaction with external world can revolutionise every field that Oraclea dive into owing to the flexible nature oof bandchain.
Oracles add value to the smart contracts and make them smarter as they unfold new horizoms for them.
Cons
Involvement of third party service may lead to compromise in the security of the system.
To be more specific , the inflation rate of more than 10% is high.
- Manipulated data may be channeled through oracles to the blockchain and therefore disrupt the sanctity of blockchain.
- Uneven distribution of band tokens is not a positive sign of network. It is estimated that about 85% of band tokens are limited to 10% accounts. Such reports raise suspicions and doubt the credibility of network.
Future developments and new projects
Nothing is perfect in this world. There is scope for improvement in everything and same holds true for band network. As bandchain protocol has a dynamic and visionary team at work, they are constantly upgrading the system and looking for technological advancement through cooperation with other professionals and their teams.
Bandchain had signed deals with great project dealers in a good faith to enhance the blockchain. In june, integration with coin98 wallet was finalised that exposed huge user base of wallet to band. So this was a good milestone for both.
Moreover oman collaborated with band in june for launch of open money markets.
Upgradation proposal of band to BCIP 2 was put forth in june 2021 .
Not only these, integration of band with alpha finance, Gravitan, cronos etc have taken it to next level
Listing of band on voyager was a great news for all users as it reinforced their faith on it because voyager is a big name in itaelf. Not only voyager but it is also available on Binance, Huobi, coinbase and other renowned exchanges too.
So all these events have signifiicance in the development of bandchain and also represnt their affirmative efforts and commitment to strengthen the network.
Conclusion.
Blockchain is a decentralised public ledger system well known for its security, transparency, accountability, auditablity. Blockchain based smart contract are used in different practical fields of life but are yet to be adapted by masses. The smart contracts and APIs interact with the real world through blockchain Oracle that is a third-party tool to bridge the gap between the blockchain and the real world.
Hello, @ Thank you for participating in Steemit Crypto Academy season 3 week 7.
Thank you. I'll try my best nsxt time
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