Crypto Academy / Season 3/ week 7 – Homework post for @allbert – Blockchain Oracle
I want to specially appreciate professor @allbert for yet another lecture well delivered, I have gone through it and also happy to drop my entry. I hope you find it interesting. Let check it out below.
Blockchain Oracle
Blockchain Oracle just like other important aspect of the blockchain can be defined as a bridge that stands between the decentralized world and the centralized, what the oracle does is not too different from what an oracle does in the reals sense, it helps source required data which are usually external or far from the reach of the blockchain system to help the blockchain function effectively or get the needed informations or data needed for certain executions after the oracle must have reinterpreted it, filter and conform it into what the blockchian system will understand and process.
However, there are different types of oracles, there are oracles that helps generate data from and external source into a decentralized system (blockchain), they are called the “Inbound Oracle”. Another one is called the “Outbound Oracle”, it sends information from the blockchain to the outside world which is the centralized system in this case. We also have the "Hardware oracle" which helps make information available to smart contract from the external or physical world. Lastly we have the "Software oracle" which deals with sourcing information online and then feed the blockchain with it.
Benefits of Oracle.
- Bridging of communication gap
Oracles helps to bridge the communication gap that would have existed between the blockchain system and the external world such as internet, web etc. Since the blockchain system is very different from it external counterpart in build up and mode of interpretation
- Improves blockchain efficiency
Oracle has a way of improving the efficiency of the blockchain by covering its deficiency, a blockchain might need a particular data that is not available to it within its system, with the help of an oracle, the blockchain network will access the information and then use it for it benefit. This therefore means that the oracle has successfully helped the system.
'Develop in a detailed and extensive way a post explaining some other blockchain Oracle. (chainlink will not be allowed)
There are different types of Oracle networks which I will be mentioning below but for the sake of our study, we will carry out a detailed study of just one and then see how it works in line with what we have learnt from our prof.
- Chainlink
- Band Protocol
- Tellor
- API3
- DIA e.t.c
’History and description. Does it have any token or cryptocurrency associated? Explain
For the sake of this homework, we will be looking at Band Protocol extensively
Band Protocol
Image source
Band protocol can be defined a cross chain data oracle built to compensate or incentivize it users for making real-world data available to decentralized applications otherwise known as DApps which runs on blockchain. This system is built in such a way that it ensures that it users also known as validators who gets incentives for performing the role of a validator that validates external data. Band protocol initially ran on the Ethereum blockchain but as time went on they built their own blockchain technology called Cosmos.
Band protocol was founded by 3 people namerly Sorawit Suriyakarn, Soravis Srinawakoon and Paul Nattapatsiri. They function as the Chief technology Officer,Chief Executive Officer and Chief product officer respectively. Band protocol had a supply of 100 million Band token of which 12.37% was sold during the token sale, there was also a private token sale which helped in raising $2 million. About 27% of band token supply has been sold to those who invested in it early and about 25% have been reserved for band ecosystem while 22% have been set aside for the team and those working and developing the network.
Band Protocol Token.
The Band protocol has two tokens operating in it network, they are;
- Band Token
Image source from coinmarketcap
This token can be referred to as the Band protocol fixed feed token. It functions as a collateral for issuing dataset token. It is also used as voting token in terms of making decision which have to do with the governance of the network.
- Dataset Token
It can also function as a voting token to resolve certain network issues such as the minimum rate required for those who provide data,the cost to be charged for requesting datas and the likes. Dataset token can also be used by data providers to bid during data curation.
'Functionalities and real – life application
Band protocol has been able to add value to the blockchain world by some of it activities which includes the following below.
- Decentralized financial Apps built with band protocol oracle can easily have access to crypto prices including stock and commoditiy prices from multiple exchange platform with ease because band protocol makes the data available.
- Band protocol can be used for powering gambling and betting DApps.
- Band protocol oracle is also used to power gaming apps/platforms for the lovers of games.
'Pros and cons
Pros
- Incentives
Under this network, there is incentives for honest members that choose to remain with them in providing data.
- Affordability
The band smart contract doesn’t consume too much gas in processing request because of it optimization and that is why it is 50% cheaper than many other of it counterparts
- Scalability
In the band network no additional cost of operation is required when multiple smart contract consumes data, this makes it more efficient unlike others
- Speed
Request can be processed within a short period of time and this requires no form of confirmation which is usually the reason while there is delay on the network
- Smooth implementation.
DApps can be easily integrated into the Band protocol without having hard nuts to crack, just a few lines of command will get it running.
Cons.
- Band is still a work in progress, presently it only supports free low quality APIs and this is still a set back to the band system
- Band protocol have not still been able to allow vast majority of data providers in because many of them cannot accept cryptocurrency as payment (some due to legal reason)
- The band team have also been said to lack experience when it comes to advance cryptography,distributed system and also in building oracles.
- Band has been said to be rigid in it model and would not adjust to improve in it service such as is seen in it obvious struggle to support authenticated API.
’Future development and new projects.
Band protocol in their pursuit to be the first and the best blockchain oracle has outlined 4 phases of their road mark which captures both the present and future . These phases are named after notable Chinese icons, they are;
- Phase 0 (Wenchang);
This is the big unveiling/launch of the band protocol which featured ERC-20 BAND token swap for main-net Band token
- Phase 2 (Guan Yu)
This phase supports a custom scripting language for smart contract request placed on the bandchain, it has also integrated in it bandchain applications supported by etherium and cosmos
- Phase 2 ( Laozi)
This phase which is one of their major future plans aims at improving blochchain interoperability which will give room for various form of payment methods thereby making the blockchain enterprising. It is also stated that band protocol will be center on the Asia market since the north America has been captured by it counterpart, Chainlink.
Just recently, they launched the phase 2 which they are currently running with according to the road map, this therefore means they are trying to give rooms for more payment method which will also bring in more data provider and also imcoporate many more into this phase.I also searched for the telegram platform so that I can follow up.on their latest development by so doing.
Conclusion
Blockchain oracle is a very nice feature in the blockchain space, the role it places is very key and has contributed to the smooth flow of activities running on the blockchain especially behind the scene.Its amazing to realize that Many of the functionality we see on DApps are powered by oracles.
Thanks once again for the awesome lecture prof @allbert, I hope you found my entry interesting.
Cc: @allbert
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