Crypto Academy Season 3 | Intermediate course by @allbert –week 7: Blockchain Oracle | By @prolee
With great joy in heart, coming from the new knowledge gotten from this awesome assignment on block chain oracle by @allbert . Without wasting much time, I will quickly go into the assignment, but let me take on a tour on what block chain Oracle is.
Task
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 Blockchain Oracle?
As explained by the professor, an oracle is more like an intercessor. In traditional African society, he's termed the ear of the gods. He hears from the gods and relate to the people.
Using the above image as a guide, we can see that the eye is the solicitor to the other features, therefore, the eye is the oracle.
Block chain oracle
In short, a block chain oracle is an intercessor between blockchain and the world at large. It can be seen as a bridge between the decentralized world ( block chain world ) and the centralized web.
Let me throw a little light on the two worlds.
What Is Blockchain?
Blockchain is a unique system of recording information or the use of digital ledger to store transactions that are duplicated and distributed across the entire network of computer systems or nodes of different customers on the blockchain. I bet you, transparency stands as one of it's unique characteristics, don't argue me.
Block chain is something like a programmed network that's highly secured making it very hard or even impossible for foreign body to penetrate.
It's made up of different blocks that makes up a chain with each block containing transactions. when one block in the chain is changed, it reflects that It's been tampered with.
Example of a block chain is bitcoin,ethereum etc.
What Is Centralized Web?
A centralized web is built around a single sever which performs the essential activities in the web. Other less powerful workstations connect directly to them major sever to help them perform the activity.
Going into the assignment properly, I'll be writing on Band protocol oracle.
Band Protocol Oracle
A band protocol oracle is a decentralized cross chain oracle that lumps and connect Application programing interface (API) and real world data to smart contract.
This band protocol rolls through bandchain ( which is an independent delegated proof of stake DPoS that is built with the cosmos SDK.
Looking at the above definition, we can attest that the band protocol intercedes between application program interface and real world data with smart contract, which is the major duty of an oracle.
History And Description Of Band Protocol Oracle
Band protocol oracle whose's main aim is to solve the problems of those smart contract applications that lack access to the real world was launched on October 2019 on the ethereum blockchain. But it was later relaunched in june 2020 because of it's movement to cosmos SDK.
Band protocol oracle uses a public blockchain called dubbed the blockchain.
This blockchain allows different entity to request data from Application programing interfaces ( APIs ) or other traditional web services.
The focuses of band protocol are data flexibility, cross - chain compatability , speed and scalability. It seeks to provide data speedily and reliably to public blockchain in seconds. It also uses cosmos' IBC (coherent communication layer between different blockchain layer) to send data results to other blockchain.
When using band protocol, data verification is done by participants who owns a band token.
The bandchain is distributed or released in four phases which are from phase 0 - phase 4.
Phase 0 : this phase was launched on jun, 6th 2020. It's that phase that allows BAND token to be transferred and staking for validation.
Phase 1 : The phase whose mainnet migration was completed on oct, 15, 2020 is solely used for supporting permissionless creation of customizable data oracle whose's feature is to question public and data sources that are permissionless.
Phase 2 : This phase helps APIs providers to mercantalize their data and also collect revenue on chain.
Phase 3 : this phase support payment and private or identity oracle scripts in the system. It's features also enables users to pay in token preferable to them.
Does Band Chain Have Any Token Or Cryptocurrency Associated?.....🤔
The band protocol uses a token called band.
This band is ensures is highly secured and it's also resistance to economic manipulations which is an additional reason to use the network.
Currently a band is equivalent to $ 8.36 USD with a 24 hrs trading volume of $ 43,027,443 USD.It's ranked number 161 In the current CoinMarketCap with a live market cap of $293,559,176 USD.
Functionalities And Real Life Application
Band protocol oracle have several functions few will be listed.
It's in supports of the one way behavior, to transfer data as speedily as it's needed to blockchains.
It gives fast and reliable data to a wide range of users in a public blockchain in seconds.
It enables data givers to mint money with their data using Band Protocol’s on-chain payment settlement, thereby getting raid of middlemen.
It is able of send data outcome to other blockchains by Cosmos’ IBC.
MERITS AND DEMERITS
Below are the pros and cons of using band protocol oracle
MERITS
Decentralized applications can purchase Band Protocol and gain access to the outside world data for feeding it to their smart contracts through Band Protocol APIs.
Many Decentralized finance protocols uses smart contracts for the automatic execution of transactions. Without real-world data, ( which is the use of Band protocol oracle) smart contracts cannot execute the transactions.
Band Protocol oracle can be dual-used, it transmit data, and also involved in block validation.
Another advantage of Band Protocol oracle is its cross-chain functionalities.
DEMERITS
The Band Protocol network depends on Band, which I used as a token to encourage validators.
Band delegators solely depends on validators to survive the ecosystem.
It allows coins to be staked and not traded which is not a good feature.
The amount of stake you do determine if you'll be a validator or a delegator. Those that have low stake rate (delegators) delegate their stakes to the validators (High stake rate).
Future Development And New Project Of Band Protocol
Below are the some future goals of band protocol;
To make Band Protocol the decentralized oracle for scalable blockchain applications, offering end-to-end flexibility and customizability for both institutional data providers and oracle integrators.
By the end of 2021, They're hoping that developers will be able to combine Band Protocol oracles in a fully documented, self-serviced manner.
Enterprise and commercial data providers will also be able to competently setup tech stacks to provide data to smart contracts and automatically impulsively collect revenue in a currency of their choice.
They're hoping to make the band protocol available on the ethereum and other blockchains etc.
Conclusion
Also, using DigitalCoin analysis, Band Protocol cryptocurrency will rise in the next 5 years starting from $8.36 as of today’s price to $21.2086001. It will go up to $8.6259442 by 2022 and continue its growth in 2023–2024. using this forecast, it can assured that band Protocol will be a success in future time.
In conclusion, as once said, I learned alot from this assignment and the knowledge gotten from this research is thrilling.
Thank you once again @allbert, Goodluck to all participants.
Hello, @prolee Thank you for participating in Steemit Crypto Academy season 3 week 7.
Thanks Professor...I promise to do better.