Band

What is Band Protocol?

Band Protocol functions as a cross-chain data oracle platform with the goal of developing high-quality suites of web3 development products. The platform provides reliable, secure, and real-time data to smart contracts on various blockchain networks. It was designed to address the growing demand for accurate and timely data in blockchain-based applications.

The Band Protocol operates on the BandChain, a Cosmos-SDK-based blockchain compatible with various smart contract and blockchain development frameworks. The network's design focuses on modularizing and handling resource-intensive tasks, such as fetching and aggregating data from external sources, relieving congestion and high transaction fees on destination networks. Its flexibility allows developers to query diverse data types, spanning on-chain data, real-world events, and information available through the web.

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Recent Video Interview

Main points of the interview:

• Band Protocol's Mission: enabling decentralized applications (dApps) to access real-world data securely and reliably.
• Expansion Strategy: expand to support various blockchains like Cosmos, Terra, and Polygon due to scalability and cost considerations.
• Decentralization and Security: Ensures data integrity and security through robust validator and oracle mechanisms.
• Future Challenges and Opportunities: Focuses on mitigating Miner Extractable Value (MEV) issues and collaborating with regulators to address privacy concerns in decentralized oracle data.

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New Possibilities with Phase 2 Upgrade

Since the October 2020 launch of the GuanYu mainnet, Band Protocol has witnessed significant adoption across various use cases, including lending, money markets, gambling, asset and tokenization, as well as on-chain and real-world insurance applications. The Phase 2 (Laozi) upgrade aims to broaden the oracle's capabilities. Notable additions include enabling data providers to receive on-chain payments from developers using BandChain services and facilitating cross-chain oracle requests through the Inter-Blockchain Communication (IBC) standard.

This upgrade introduces new possibilities, allowing Band oracle to offer decentralized price oracles, verifiable randomness, and enhanced cross-chain communication services to developers.

How Band Protocol Works

When requesting data from BandChain, users interact with oracle scripts instead of data sources directly. Oracle scripts, akin to smart contracts, are executable programs defining raw data requests, aggregation methods, and are Turing-complete, supporting various programming languages.

To create an oracle script, the creator broadcasts a MsgCreateOracleScript to BandChain, specifying details like the sender's identity, script owner, if any, script name, attached OWasm compiled binary, schema, and source code URL. Unlike data sources, the sender and owner can differ.

The script execution involves two phases. In the first, the script outlines required data sources, sending a request to validators for results. The second phase aggregates data reports from validators, combining values into a final result. BandChain allows flexibility in the aggregation method, leaving the design decision to the script creator or subsequent editors.

BAND Token

BAND is the native staking token on BandChain, offering staked holders governance rights. BandChain incentivizes active participation through an inflationary model for BAND tokens, encouraging staking over trading or idle holding. In line with Cosmos network parameters, annual inflation ranges from 7% to 20%, targeting 66% of total BAND supply staked. Validators earn BAND rewards for creating blocks and processing transactions, while non-validator participants can earn rewards as delegators. Validator rewards, shared with delegators, depend on total staked tokens and may involve a commission. Validators face slashing for misbehavior, with reasons including excessive downtime, double signing (from Cosmos SDK), and unresponsiveness (specific to BandChain).

Band Protocol Team Background and Partners

Soravis Srinawakoon, Band Protocol's CEO and Co-founder, holds an M.S. in Management Science and Engineering from Stanford University. Sorawit Suriyakarn, Band Protocol's CTO and Co-founder, has an M.Eng./S.B. from MIT. Paul Nattapatsiri, Band Protocol's CPO and Co-founder, previously worked at Tripadvisor and Turfmapp, and is the creator of crypto games with over 800,000 users since 2013.

Band Protocol's main invetsors: Sequia, Binance, Dunamu, Spartan, Alphain Ventures, Woodstock, and SeaX. Meanwhile, some of the protocol's most notable partners/intergrations are Beta Finance, Balanced, Cronos, Celo, Chee Finance, Desmos, Fantom, Injective, Mantra DAO, Meter, Scream...

Band Protocol Project Development

Band Protocol and XRP Ledger (XRPL) are joining forces as Band Protocol becomes the inaugural oracle provider for XRPL. This partnership extends to both XRPL's mainnet and its EVM side-chain, marking a significant milestone in XRPL's development.

The XRP Ledger (XRPL) is a decentralized Layer 1 blockchain, operated by a global developer community. Known for its speed, energy efficiency, and reliability, XRPL has been a preferred blockchain for over a decade, particularly excelling in enabling the settlement and liquidity of tokenized assets at scale.