Band Protocol is a software application designed to let network members to provide trustworthy data to blockchain-based decentralized apps (dApps). This service is provided by Band Protocol via a piece of software that pays a certain subset of its users, referred to as validators, to provide and verify external data to ensure that its smart contracts are executed correctly.

According to this method, blockchains that reward user-provided verified data, such as Chainlink and Band Protocol, are called "decentralized oracle" systems. The Band protocol built its blockchain using Cosmos technology to transfer data between several blockchains, including ones that are Cosmos-based. However, the protocol first ran on Ethereum before the move.

Band Protocol Framework

The Band protocol offers a platform through which decentralized applications (dApps) may leverage their smart contract databases to access external solutions. Consequently, it uses its native blockchain, which works with Cosmos's Inter-Blockchain Communication Protocol and was first launched on the Ethereum network.

Band Protocol eliminates the need for middlemen and the issues with data security and sustainability during connections. The protocol's security method is enabled using a Delegated Proof-of-Stake consensus process.

How Band Protocol Works

Band Protocol acts as a link between conventional Internet data sources and blockchains. The program sends data and answers to requests for data from decentralized apps by using data streams from the rest of the internet. It does this by using its blockchain, which allows the general public to examine and validate every one of its actions. The company says that by taking this action, consumers' submitted data won't be manipulated, inaccurate, or corrupted in any other way. Validators are in charge of confirming that Band Protocol transactions and new block additions are accurate.

A minimum quantity of BAND, the native token of the blockchain, must be held by a validator of the Band Protocol. These tokens may be acquired through purchases or handed to them by other users. The top 100 holders of BAND tokens are selected by the network to serve as validators. Validators are required to adhere to certain requirements, such as being online at all times, reacting to network events, and properly confirming transactions. If they don't comply, they run the danger of the network seizing part of their BAND.

Benefits of Band Protocol

Since Ethereum drives the majority of dApps, it seems natural that some oracles are exclusively connected to it. On the other hand, Band Protocol is interoperable with other blockchains and is an essential part of the framework for dApps developed on other platforms.
Band Protocol is a crucial component that makes it possible for dApp developers to create an ecosystem that is larger than Ethereum while searching for more features and cheaper prices on alternative blockchains.
In addition to other partnerships, Band Protocol has joined the Open API Initiative to contribute to the development of an API standard. APIs are how the protocol gathers data from off-chain domains and links it to blockchains.

Band Chain

BandChain is a blockchain platform with excellent performance that is intended for tokenized assets and decentralized apps. Because of its foundation in the Cosmos network, it can be integrated with other blockchains and offers a quick and safe platform for the production and trading of digital assets.

Built on top of BandChain, Band Protocol makes use of its decentralized Oracle network to provide blockchain apps access to real-time data. Essentially, BandChain supplies the necessary infrastructure for Band Protocol to operate as a decentralized network of oracles.

BAND Token

The native token of the Band Protocol, BAND, powers the distributed oracle network, which is protected by DPoS. The ERC-20 utility token BAND, which is also used as a means of trade to circumvent open-access data oracles, powers the protocol's decentralized governance structure. In addition, it is utilized for staking, governance, and collateral.