Background : Blockchain Oracle
Blockchain Oracle are projects that serve as an intermediary between the Analog world (physical world) and the Digital world (smart contract programs) of cryptocurrency, by providing the required external information smart contracts needs to execute instructions internally.
Smart contracts are automated programs built within a Blockchain that manage decentralized exchange transactions in the form of digital agreements between nodes in a network. The smart contract requires external information from connected nodes to fully execute the given instructions. This poses a problem Oracles in Blockchains solve.
Blockchain Oracles process obtained external information to a computer-readable (Machine language) language that smart contract can easily understand and execute on. In simple terms, various Blockchain Smart contracts rely on Blockchain Oracle to translate outbound sourced information to an inbound language.
Question
Develop in a detailed and extensive way a post explaining some other Blockchain Oracle.
Band Protocol
Project History and Description
Band Protocol is a multi-chain (used by multiple Blockchains) Oracle project that was introduced in 2017 by a team of developers bases in Thailand. The band Protocol project was first introduced on the Ethereum network, the script of the project was developed with Solidity, which is Ethereum network's native programming language.
The project primarily provided Ethereum based developers with a collection of real-world data ranging from finance and insurance-related data, weather-related information, sports analytics data, etc. utilized in the development of Decentralized Applications (DApps) on the network.
The Band project used Binance exchange to conduct its first public offer i.e Initial Exchange Offering (IEO) where about $5 Million was raised and they accepted major coins BTC, ETH, BNB for their token shares. With the success of the IEO and the rapid growth in the number of users and their service, the Band protocol developers launched their network called Bandchain.
Bandchain is a cosmos-based Blockchain that uses the Delegated proof-of-stake (DPoS) consensus algorithm, with high performance in data sourcing and node scalability. Bandchain extended the services of the band protocol to other blockchains, this allowed cross-chain data interfacing, smart contract real-world data sourcing and aggregating, and API services.
This was achieved by creating a central public database that was free for multiple Blockchains and smart contract developers to access sourced and stored data at relatively no cost. This further boosted the use and adoption of the bandchain.
Bandchain reward nodes that validate the potency of data sourced on the blockchain within their native token called BAND ($BAND).
BAND Token
The band protocol created a native token called BAND which is an ERC-20 token used within the network. The BAND token was first introduced through pre-sale held by the developers of band protocol, where the token was sold at $0.3 per share. The initial exchange offering was done on Binance exchange, where the token was exchanged for other coins Like BTC, ETH, BNB, sold for $0.4 per share.
The success of Bandchain and its Oracle project saw the valuation of the BAND token reached an all-time high of $23.305 in April 2021.
BAND token has a current value of $7.85 according to popular cryptocurrency information website Coimmarketcap, ranked #155.
BAND token has a market capitalization of $278,235,810, and a diluted market capitalization of $791,819,037. The Circulation supply of the BAND token is 39,191,821 BAND and a total supply of 100,000,000 BAND, this implies that about 60,808,179 BAND tokens can still be created. It has a market dominance of about 0.01%.
BAND token is listed in some of the top exchanges for swapping. They include Binance, OKEx, CoinTiger, Huobi Global, Tokocrypto.
Functions and Real-life Applications of Band protocol projects.
The core function of band protocol is to provide reliable data to various Blockchain smart contracts within a short time interval. This was achieved with the use of Application program interface (API), which is the same technology used by giant companies like Google, Microsoft, IBM, eBay, etc. use for data communication and translation.
Band protocol sources data through partnerships with data providers like Binance, coingecko, Coimmarketcap, etc. And serves as a data bank to multiple blockchains, the multi-chain data communication is achieved through the use of Cosmos IBC. The cosmos Inter Blockchain Communication (IBC) is an interoperable communication layer spanned across blockchains of different networks that allows data communication between these blockchains.
With the integration of Cosmos IBC communication link, band protocol serves off-chain data to DApp smart contracts, and process data resource sharing across multi-chains. Band protocol became popular as other blockchain oracles were based solely on Ethereum network. This became evident as DApp smart contracts developers need fast and less expensive alternative blockchain.
Band protocol accepts open sourced and closed sources forms of data, where nodes seeking a closed source data are required to make an on-chain payment to access the data they need. Band protocol also serves as a gateway for closed-source information provided where payment is required before data can be accessed.
Connected nodes on the bandchain network validate the reliability and potency of data sourced from the data providers. Upon the validations, the node is rewarded with the BAND token. This process keeps the band community active and decentralized.
Pros and Cons
Band protocol has some pros and cons, and they include:
Pros
1- Multi-chain Compatibility
The band is an inoperable cross-chain protocol that can communicate with different blockchain networks. This allows developers on different blockchains to create smart contracts and DApps that utilize this project.
2- Scalability
The Bandchain network is designed to adapt to accommodate scalability such new nodes can easily join the network without disrupting the network resources and bandwidth.
Fastness
Band protocol was designed on a fast architectural network link, such that interaction between obtained real-world data and smart contracts are lightning-fast, usually calculated within seconds.
Decentralization
The DPoS consensus algorithm used within the network allows nodes to maintain decentralization and control of the network through node delegation of resources to top validators of choice within the network.
Cons
1- Reliance performance
Similar to other blockchains, the stability and performance of the network rely heavily on the effort of the delegated nodes (validators).
2- Data providers
The basis of the network is to provide and aggregate real-world data in ways that programs (smart contracts) will understand, this forces a strong dependence on their data providers. If any of their partnerships are withdrawn, it will after the stability of the network in general.
3- Rigged Delegation
The DPoS algorithm can be overpowered by a validator through false delegation of resources, where the validator uses their resources to decide the other validators.
4- Blockchain Attacks
Band protocol is decentralized, due to this fact it is open to any form of Blockchain attack like DDoS, Finney attack, 51% attack, race attack, etc.
Future developments and new projects
Future Development
With the increasing growth in the use of Blockchain technology, the need for blockchain oracle service will also increase. Band protocol is making plans for growth expansion, in preparation for this, they plan to launch Bandchain phase 2, which will improve on some functionalities of the current Bandchain.
The focus on the new to be launched Bandchain phase 2 will be the integration of Bandchain on an institutional and business level to widening the availability of data to Blockchains from many sectors. According to their 2021 roadmap release via Medium bandchain aims to increase their data feed to over 150+, still maintain layered security of data and stable network infrastructure.
New projects
Verifiable Random Function
This is a cryptographic function that publicly proves the correctness of an output. The integration of this feature on bandchain will allows developers to create NFTs, Blockchain games on the bandchain network.
Commercialization of On-chain Data
This project will allow outsourced pieces of information to be monetized using APIs on the bandchain network, where information providers get paid for information provided.
Conclusion
Band protocol oracle services provide key function services in decentralized finance through the provision of verifiable real-world data to on-chain, used by smart contract developers to further enhance its function. The adoption of A-level technology by band protocol ensures that the technology is fast and secured for on-chain use and adoption.
The Bandchain growth project is good as the network envisions further expansion to institutional and business data levels where wider availability of data across sectors is guaranteed. This will further boost the valuation of the BAND token and offer good ROI on investments made on the token.
Thank you professor @allbert for this insightful lesson.
Hello, @beckie96830 Thank you for participating in Steemit Crypto Academy season 3 week 7.
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