BLOCKCHAIN ORACLE

The block chain oracles are very important aspects of the block chain technology and there are a crucial elements that affects how block chains meet the various demands of its users. If the block chain oracle is that important then what is the block chain oracle?

When we talk about the block chain oracle we are referring to an entitity that serves as a link or middle man between a deterministic block chain and a data that is outside the network. There are a middle man service that helps in the preparation of smart contracts using informations from the outside world.

We can therefore say that the block chain oracle is a link or better still a bridge that connects both block chain and the outside world. This connection process is usually achieved by the use of trusted APIs which makes it possible for the block chain to connect with the outside world.

It is a layer that is responsible for inquiries, verification and also authentication of data sources from the outside world.

THE IMPORTANT BLOCK CHAIN ORACLES ARE

On normal terms, smart contracts and block chains do not have the ability to connect with the outside world, this is to say that both the smart contracts and block chain do not have the configuration that enables them to access any information that is not on the network, with the help of the block chain oracles, the smart contracts and the block chain now have a link that connects them to the outside world, this in turn helps to improve the impact of smart contracts.

The block chain oracle helps to broaden the rate of operation of smart contracts, the block chain oracle converts the outside world’s informations into smart contracts. If more information is provided, the smart contracts can function in a more vast and efficient way, if there were no block chain oracles the smart contract will not have contact with the outside world, this will in turn limit their use and importance because the only information that will be at its disposal will be informations that are within its network.

A REAL LIFE EXAMPLE OF THE BLOCK CHAIN ORACLE

To fully understand the way the block chain oracle works, it is expedient that we take an example that will bring us into better comprehension of what the block chain oracle really is;

Let’s take for instance, we are two persons, say, Sam and Philip, these two persons are lovers of betting, to ensure a fair and transparent result in their voting process they decide to set up a smart contract.

They decided to predict the outcome of their country’s election; Sam says party A will win the election while Philip is of the opinion that party B will win the election. To ensure fairness there will need a middle man and that’s where the smart contract comes into play, they create a smart contract with the set rules of the bet. What they are betting on doesn’t exist on the block chain network and so there will be needing an oracle to supply that external information to the smart contract form outer sources.

Once the oracle is set correctly, it will supply the smart contract with the relevant information needed. Once the result for the election is out, the information will be supplied to the smart contract by the oracle, the information will then inform Sam and Philip on the result of the election including other parties that registered for the bet to take place.

HISTORY AND DESCRIPTION OF BAND PROTOCOL

The band protocol was developed to be able to curb the problem of smart contracts not being able to access informations that has to do with the real world. The aim of the band protocol is to ensure that transactions are reliable, fast and also able to change in scale. This Oracle was first discharged on the Ethereum blockchain in the year 2019, Band protocol oracle ultimately built its own blockchain with the use of Cosmos SDK to convey data in all different blockchains.

The band protocol is famous for its cross chain solution which aquires information from API’s, the band protocol makes use of informations from trusted and reliable sources that make interactions by using a delegated proof of stake (DPoS) consensus.

The band chain is fully released by making use of four different stages, these are:

i. Phase 0
ii.Phase1
iii.Phase 2
iv.Phase 3

PHASE 0

Phase 0 is the very foundation of the BandChain and it makes it possible for one to be able to transfer Band token and stake for the validators. Phase 0 was released on 6th of June 2020

PHASE 1

The phase 1 mainnet permits the creation of data oracle scripts that can be customized without taking permission; these data oracle scripts can question both public and data sources that doesn’t require permission. Its launching was on on 15th October 2020

PHASE 2

The phase 2 mainnet of the band protocol is aimed at enabling API providers to exploit their data on chain in a no trust manner and take revenue on-chain. The phase 2 mainnet is an upgrade of the phase 1 mainnet. It was launched in June 2021

PHASE 3

The phase 3 of the band protocol supports private oracle scripts and also choices for making payment in the system, developers are free to pay the token they want and also the model of subscription. The attention given to this discharge will make the achievement of the BandChain decentralize oracle network set to drive capability in between smart contracts and traditional enterprise services.

Band Protocol saw quick growth in 2020 as it changed to Band Protocol v2.0 that is also known as BandChain from the community token and joined curve model in v1.0. This Oracle's new direction result to over 50 designed oracle entire, where Band will give price feeds to the planned protocols and 15 new beginning of those that validates for Band Protocol v2.0.

Band Protocol became the number one blockchain firm that join the Open API Initiative with names like IBM, Google, and Microsoft in the 12th month of 2020. This group pledge to make a common API

DOES BAND PROTOCOL HAVE A CRYPTO TOKEN ATTACHED TO IT?

The band protocol has a token attached to it, this token is referred to as BAND. The band token is a native token that is used to ensure guaranteed high security to manipulation that has to do with the economy. The traders that hold BAND can add to data sourcing in gain coming for rewards.

The BAND token itself is unique, it has both an Ethereum-based ERC-20 token repeat, a small portion of the Bans protocol’s earlier stages Ethereum-centric dais, as well as a new Band Protocol mainnet form. They are able to switch with each other at a ratio of 1:1, the condition is that only the new mainnet coin can be staked.

HOW DOES BAND PROTOCOL WORK

The band protocol is in support of the ‘one way’ behavior, to be able to transfer data swiftly to block chains that are not supported by IBC, Band Protocol is able of send its data outcome to other block chains by Cosmos’ IBC — an exchange data communication layer in between various block chain networks.

The aim of band protocol is to provide a fast and reliable data to a wide variety of public block chains with answer time measured in view seconds in an adequate manner to support the data needed of demanding smart contracts.

Those that gives data can mint money their data with the use of Band Protocol’s on-chain payment settlement, to avoid middlemen. Band Protocol also wants to be uncertain in the sense that it has to give room to diverse forms of data and many ways of recovering it.

Some of the data Band Protocol have retrieve is publicly approachable, to get along with but other data might be given permission, it can protected by centralized entities, or be behind a paywall. If the afterward is true, payment to the data source is able to be verified on-chain and validators that are asking for the data can be supplied agreeably.

ADVANTAGES OF THE BAND PROTOCOL ORACLE

1.You do not have any need for a middleman as data can be monetized by making use of on-chain.

2.The Band token makes it possible for those holding the coin to participate in the governance of the Band protocol.

3.Validators can bring idea of new blocks and take part in Band Protocol’s DPoS general protocol by voting on the genuineness of data.

DISADVANTAGES OF THE BAND PROTOCOL ORACLE

1.The delegators in Band Protocol oracle cannot function with a validator.

2.Coins can only be staked, no trade or HODL

3.It is not all investors that can become validators

4.The Band Protocol network can't stand alone, it depend BAND, the token to encourage validators

DEVELOPMENT AND FUTURE PROJECTS OF BAND PROTOCOL

On 6TH of August, Kraken listed Band protocol among the four assets it will be supporting, this is a plus to the development of the band protocol

The completion of the deployment of Fantom Opera mainnet node by band protocol is also a plus to its future development

CONCLUSION

Although the band protocol oracle is quite new, but it is promising as it is rising fast as its development is rapid.
Investing in an asset like this will bring results in due time if the trader is patient enough.

@allbert
@steemcurator02