SVET Reports
Band Protocol or Oracle development prospects
The blockchain economy continues to evolve. Of course, it is still too early to say that smart contracts will be integrated into various everyday products, services and applications everywhere. However, there is a high probability that decentralized applications (dApps) will become widely popular in the modern world, since the search for a decentralized solution to the problem of a reliable data source/Oracle is an important task. Today we will talk about the BAND token and the company that is trying to solve this problem - the Band Protocol.
Let's talk about what the Band Protocol is.
The band Protocol cryptocurrency is a secure and scalable decentralized Oracle that acts as a two-tier Protocol for public blockchains. This allows centralized applications to use existing data on the Internet without trusted intermediaries, connecting different use cases between Web 2.0 and 3.0.
The unique multi-token Band model and staking mechanism ensure that data is not manipulated. By making data available and reusable on the network, Band Protocol offers a cheaper and faster solution than the alternatives. And all this without compromising security.
Smart contracts rely on external price channels, events, and values provided through traditional web APIs to solve its logic and ensure secure token transfer. Band Protocol provides a secure, blockchain-agnostic, decentralized oracle framework for Web 3.0 applications. it connects smart contracts with reliable off-chain data and ensures their integrity through token-based economic incentives, effectively creating a reliable information bridge between Web 2.0 and Web 3.0 of the future.
Now let's talk about the features of the Band Protocol.
Band Protocol aims to become a decentralized Oracle for dApps across multiple blockchain networks, providing maximum security, speed, and all this while maintaining a low cost.
To be safe and useful, it is essential that smart contracts have access to reliable real data. To ensure full decentralization, there must be a reliable bridge between reliable off-chain data and dApps.
Despite numerous attempts to solve this problem, most projects are either insufficiently decentralized in design, difficult to integrate by developers, or do not have an economic incentive for data providers to consistently provide high-quality information.
The initial version of the Band Protocol was released on the Ethereum blockchain in September 2019, starting with price submission for decentralized financial applications. Although the launch was very successful, Oracle's solution was limited only to the Ethereum ecosystem. The team quickly learned from user feedback on the Protocol's design and quickly moved on to the next version, which has since become Band Protocol v2.
Most existing smart contract platforms, although they support the trusted execution of arbitrary programs, do not have access to real data. This makes smart contracts less useful.
Band Protocol v2 is an ongoing development aimed at providing Oracle infrastructure to support multiple blockchains and expand smart contract use cases in General. It links public blockchains to off-chain information with the following design goals:
- Speed and scalability. The system handles a large number of data requests to multiple public blockchains with minimal latency.
- Cross-chain compatibility. The system is a blockchain-agnostic platform and can serve data for all available public blockchains.
- Data flexibility. The system is universal and supports various methods of data extraction and aggregation.
Note the advantages of the Band Protocol.
The Band Protocol offers a decentralized data Oracle, making data easily accessible for querying along the chain, using delegated proof of stake (DPO) to ensure data integrity.
The project offers the following features:
- Decentralized economic incentive. To provide data to the Band Protocol, you need to put tokens and your reputation as collateral. This is different from other solutions that may not have proper decentralized economic incentives at the Protocol level. Modern solutions with smart contracts in the main network do not have a breakdown mechanism, and app applications need to choose data providers that they trust themselves.
- Scalability. Because data is published in a chain, multiple apps can consume the same data at no additional cost to data providers. As the system grows, the cost for individual requests is expected to decrease.
- Quick data request. Logic can be processed within a single transaction without requiring blockchain confirmation. Data is easily accessible on the blockchain, so data consumption can be done synchronously within a single transaction.
- Easy deployment. DApps can integrate with the Band Protocol using a few lines of code without any major changes. To query data in a range dataset, you only need to call a function in a predefined interface.
- Speed and ease of integration. The mechanism provides data that is available along the chain, so when a smart contract needs access to data, it can do so by simply calling a function. This helps to avoid downtime and delays in the confirmation block. Many current solutions are asynchronous and require multiple confirmations of the blockchain before they will be able to process the data.
Roughly speaking, the Protocol underlying the Band protocol connects smart contracts with information provided through data providers created by the community. DApps consume data through the BAND's public smart contract datasets, not through external oracles.
Speaking about cryptocurrency, it is impossible not to touch its rate.
At the time of writing, the band Protocol cryptocurrency is on the 91st line of the CoinMarketCap rating. The market capitalization is $84.5 million, and the daily trading volume has almost reached $53 million.
As for the market Outlook, it is safe to say that the demand for decentralized oracles will continue to grow. The growth Outlook is related to the fact that more and more industries will start using smart contracts. Band Protocol is an interesting project aimed at solving problems related to the inability of smart contracts to interact directly with the outside world and receive real data. The market for decentralized oracles/data channels is still being created, and as a result, Band has a good opportunity to establish itself in what is still an emerging market sector.
Band Protocol aims to become a data access infrastructure for Web 3.0 applications, providing decentralized curated data off-chain for smart contracts, through oracles managed using the dPoS consensus mechanism.
Results of rating analysis.
Oracles are a key piece of infrastructure that will allow blockchain to enter our daily lives. It is more than likely that the market will use many oracle vendors. Projects that are currently working on this problem have a good chance of gaining a competitive advantage.
Band Protocol builds a strong product and a strong ecosystem of partners. This should help the project gain a dominant position in the market and expand the implementation of its technology. The demand for oracles is likely to only grow, and Band has a good chance of capturing most of this demand with its solution.
Based on the above information, I, as an independent investor, would be happy to have this cryptocurrency in my portfolio. Over the past three months (August – October 2020), BAND was able to grow to $17 and drop to 4.5 points. Despite this, comparing the indicators of the end of October 2020 with those of two years ago, we see that the price of the asset has increased almost 7 times. This is an excellent indicator for 2 years. And the prospects for the development of the industry, described above, determine the potential for further price growth.