What is Band Protocol?
Band Protocol is a blockchain-based application that incentivizes a network of people to deliver real-world data to decentralized applications (dapps).
If a dapp developer wishes to allow his or her customers to place bets on the future price of gold, for example, the developer must be able to predict the price at the chosen later date.
Band Protocol offers this service to guarantee that its smart contracts are executed properly with software that incentivizes a specific class of users known as validators to contribute and validate external data.
Band Protocol is often referred to as a “decentralized oracle” system, a term used to characterize blockchains such as Chainlink, which, like BAND, reward users for providing reliable data.
How Does Band Protocol Work?
Band Protocol, like other oracles, serves as a link between a dapp’s blockchain-based smart contract and a real-world data source situated outside of the blockchain. Many dapps depend on this data to operate and serve consumers, and they must have the most up-to-date, correct data to do so.
The BandChain blockchain is used to connect off-chain data sources to smart contracts, with a decentralized network of validators creating blocks to verify those transactions.
The co-founders of Band Protocol initially learned about cryptocurrency in 2014, when MIT issued a $100 Bitcoin airdrop to students who completed a survey.
Some oracles are only linked to Ethereum, which makes sense given that Ethereum is the backbone of the bulk of dapps. Band Protocol, on the other hand, is compatible with other blockchains and serves as a critical piece of infrastructure for dapps created elsewhere.
Band Protocol might be an important tool for enabling a bigger dapp ecosystem beyond Ethereum as dapp producers seek to other blockchains for quicker transactions and reduced costs.
Band Protocol, along with industry heavyweights like Google and Microsoft, has joined the OpenAPI Initiative to help set a standard for APIs, which are what Band employs to collect data from off-chain sources and bridge it over to blockchains.
What is the History of Band Protocol?
Band Protocol was founded by a Thai company of the same name. Soravis Srinawakoon, the chief executive officer, Sorawit Suriyakarn, the chief technology officer, and Paul Nattapatsiri, the chief product officer, are the three founders.
Band Protocol received $3 million in funding from venture capital companies in 2019, including Sequoia Capital India. It raised another $5.85 million in an initial exchange offering later that year (IEO).
The protocol’s initial supply of 100 million BAND tokens was sold at a rate of 12.37 percent during its token sale. The band has also raised $2 million via private token sales.
How Do I Hold Band Protocol?
BAND is an ERC20 token. You can hold it on any common Ethereum wallet, such as Metamask or MyEtherWallet.