Whether it’s the most recent cryptocurrency prices or sports scores, a lot of decentralized apps depend on a steady stream of real-world data to run. But blockchains aren’t built to access such data sources on their own.
As a result of the expansion of decentralized finance, which has increased awareness of the purposes of oracles, Band Protocol has become one of the sector’s up-and-coming players.
Band Protocol’s capability to communicate with several blockchains may make it even more valuable in the future as dApps expand beyond the Ethereum ecosystem.
What is Band Protocol?
In 2019, Band Protocol was released as an ERC-20 token.
A cryptocurrency project based on the Ethereum platform is known as an ERC-20 token. Thanks to the way it was developed, tokens can benefit from Ethereum’s security and avoid building their own blockchain.
In contrast, Band Protocol 2.0, a significant update that used the Cosmos SDK to switch the technology to BandChain, was released in 2020.
Band Protocol is a cross-chain oracle for DeFi platforms. This translates to Band working with various blockchains, such as Ethereum, to offer real-world data for blockchains.
As Band Protocol made the switch from the community token and bonding curve paradigm in version 1.0 to Band Protocol version 2.0 (also known as BandChain), it experienced rapid growth in 2020.
More than fifty planned oracle integrations (where Band will supply pricing feeds to various protocols) and fifteen new genesis validators for version 2.0 of Band Protocol are the results of Band Protocol’s new direction.
In December 2020, Band Protocol became the first blockchain company to sign on with the OpenAPI Initiative, joining companies such as Microsoft, Google, and IBM. This group’s goal is to establish a uniform API standard that will make it simple for blockchain apps to use APIs and data.
Band Protocol news
There are currently 35,191,821 BAND in circulation.
On July 13, 2022, there were 304 out of 1,625,490 social media posts mentioning Band Protocol on Twitter and Reddit. Band Protocol is discussed by numerous people, and it is currently ranked #345 in terms of popularity and activity across all threads.
How does it work?
The key focuses of Band Protocol are data flexibility, cross-chain compatibility, and speed and scalability.
The foundation of the fast-expanding dApp and DeFi sectors is the creation of smart contracts. With response times measured in seconds, Band Protocol aims to deliver trustworthy data to a wide range of public blockchains.
Fast and accurate responses are required in order to meet the data requirements of requesting smart contracts effectively.
Band Protocol aims to be agnostic in the sense that it can accept diverse data formats and retrieval techniques. While some of the data that Band Protocol must retrieve is open to the public, other data may be restricted, subject to centralized control, or hidden behind a paywall.
What can Band Protocol do?
Decentralized applications employ the Band Protocol to get data from non-blockchain sources. Having and using the BAND token can have a number of benefits for the average user.
Blockchain transactions are financed by BAND, which is also used for governance and to compensate validators for adding new blocks. To receive rewards, anyone can stake BAND and assign it to a validator.
BAND attempts to gradually devalue tokens by applying an inflationary concept to them.
Another goal of the Band Protocol team is to provide a self-service integration procedure. Anyone using Band Protocol’s oracles on BandChain will have access to the resources they require thanks to this.
According to the roadmap, this will cause a large increase in network data requests.
How to buy Band Protocol?
You can purchase BAND on both centralized and decentralized exchanges. You can, also, create an account on a cryptocurrency broker if you want to invest in cryptocurrencies.
Before opening an account, make sure your broker provides access to BAND if that is the sole investment you are interested in making. You should set up or invest in a private wallet if you intend to keep your BAND tokens for more than a few days without actively exchanging them.
You should make your buy order as soon as you fund your brokerage account and determine how you wish to store your BAND tokens.
There are hundreds of fascinating cryptocurrencies available to investors, ranging from smart contracts powered by Ethereum to oracle services like Band Protocol. In this article, you have seen why BAND stands apart from the rest and why it might be worth your time. Now you have the information to make a smart decision.