Band Protocol

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Discover Band Protocol's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Band Protocol?

Band Protocol is a decentralized, cross-chain data oracle platform that connects real-world data and APIs to smart contracts. It enhances smart contract functionalities by providing reliable data without central authority or points of failure. The platform uses a custom blockchain called BandChain, built on the Cosmos SDK, to facilitate data queries and aggregation. Band Protocol's native token, BAND, is used for staking and securing the decentralized oracle network.

How is Band Protocol used?

Band Protocol (BAND) is used in several ways:

  1. Staking Token: BAND is a staking token, which means validators stake BAND tokens to earn the right to process transactions and add new blocks to the BandChain blockchain. Validators are rewarded in BAND tokens for their services.

  2. Data Request Fees: BAND tokens are used to pay for data provided by BandChain oracle sources. This fee is paid to validators for their role in retrieving and providing data to decentralized applications (dApps).

  3. Delegation: BAND holders who are not validators can delegate their tokens to validators, earning a portion of the rewards collected by their chosen validators. This is part of the Delegated Proof of Stake (DPoS) mechanism used by BandChain.

  1. Token Economics: New BAND tokens are issued at a rate between 7% and 20% per year, with the goal of having 2/3 of the total supply staked at any given time. This inflationary tokenomics is designed to incentivize staking and validation.

Overall, the BAND token plays a central role in maintaining the security and functionality of the BandChain network, which provides decentralized data oracles to various blockchain applications.

How do I store Band Protocol?

To store Band Protocol (BAND) tokens, you can use several wallets that support the Bandchain network. Here are some options:

  1. Atomic Wallet: Atomic Wallet supports both the ERC-20 token and the mainnet coin. You can store and stake BAND tokens in this wallet.

  2. Cosmostation Wallet: Cosmostation Wallet is another option for storing and staking BAND tokens.

  3. Citadel.one: Citadel.one also supports the storage and staking of BAND tokens.

  1. Ledger with Cosmoscan.io: You can store BAND tokens on Ledger using Cosmoscan.io. There is a guide available for this process.

  2. Coin98 Wallet: Coin98 Wallet allows you to store BAND tokens and earn rewards through staking.

  3. MathWallet: MathWallet is a multichain wallet that supports the storage of BAND tokens along with other chains.

These wallets provide secure and convenient ways to manage your BAND tokens.

How to buy Band Protocol?

To buy Band Protocol (BAND) tokens, you can follow these steps:

  1. Create an Account:

    • Sign up on a cryptocurrency exchange that supports BAND, such as Zengo, KuCoin, or Coinbase.
    • Verify your account by providing the required personal information and setting up a strong password.
  2. Add a Payment Method:

    • Connect a payment method to your account, such as a bank account, debit card, or credit card.
    • Ensure that your payment method is compatible with the exchange and that you have sufficient funds.
  3. Find BAND Trading Pairs:

  • On the exchange, search for Band Protocol (BAND) and select it.
  • Choose the trading pair you want to use, such as BAND/USDT or BAND/USD.
  1. Place an Order:

    • Enter the amount of BAND you want to buy in your local currency.
    • Review the order details, including the price and fees.
    • Confirm your purchase.
  2. Store Your BAND:

    • You can store your BAND tokens in your exchange account or transfer them to a non-custodial wallet for added security.
Additional Information:
  • Zengo: Offers a simple and intuitive interface for buying BAND with fiat currencies like USD, EUR, and GBP. You can use various payment methods, including mobile payment apps, SEPA, Mastercard, Visa, or bank transfers.
  • KuCoin: Allows you to buy BAND with crypto or fiat currencies. You can use the spot market to exchange your existing crypto for BAND or purchase it directly with a credit/debit card or bank account.
  • Coinbase: Supports buying BAND in the United States. You can use a bank account, debit card, or initiate a wire transfer to purchase BAND.

Remember to always follow the specific instructions and guidelines provided by the exchange you choose.

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History of Band Protocol

Band Protocol was founded in 2017 by three MIT graduates: Soravis Srinawakoon, Paul Nattapatsiri, and Sorawit Suriyakarn. Initially, the project focused on providing accurate and reliable information to online blockchain communities. However, it shifted its focus to become a decentralized oracle for all blockchain applications, aiming to provide real-world data to smart contracts and decentralized applications (dApps) across multiple blockchains.

The project raised a private seed round of $3 million led by Sequoia India in February 2019. This was followed by a private sale of BAND tokens from July to August 2019, raising a total of $2 million at $0.40 per token. The project launched on Binance Launchpad, trading at $0.435, priced in Binance’s native token, BNB.

Band Protocol initially released on the Ethereum blockchain in 2017 but later transitioned to its own blockchain, BandChain, built using the Cosmos SDK, in 2020. This move allowed for faster and less expensive transactions compared to other blockchain oracles.

The BandChain mainnet network Phase 0 (Wenchang) launched in June 2019, and Phase 1 (Guan Yu) launched in July 2019. The protocol uses a delegated proof-of-stake (dPoS) consensus mechanism to ensure data integrity and relies on a network of validators to pass data onto blockchains.

Band Protocol has experienced rapid growth since its transition to BandChain, with its token, BAND, becoming one of the best-performing cryptocurrencies in 2020, witnessing a sharp 6000% increase in price from its seed round price of $0.30.

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How Band Protocol works

Band Protocol (BAND) is a decentralized data oracle platform designed to bridge the gap between real-world data and blockchain-based applications. Here's a detailed overview of how it works:

Key Components
  1. BandChain: A public blockchain built using the Cosmos SDK, which provides interoperability with various blockchain networks. This allows Band Protocol to service projects across different blockchains, including Ethereum, Fantom, and Avalanche.

  2. Validators and Delegators: The network relies on validators and delegators who stake the native BAND token to participate in the consensus mechanism. Validators are responsible for retrieving and aggregating data, while delegators support validators by staking their tokens.

  3. Data Requests: Decentralized applications (dApps) and smart contracts request data through customizable oracle scripts. These scripts specify the data source, the number of validators required, and the methodology for aggregating the data.

Data Retrieval and Aggregation
  1. Request Receipt: A randomized set of validators receives the data request and responds by pulling data from the specified source.

  2. Data Aggregation: The data reports from different validators are aggregated according to the customized oracle script.

  3. Data Storage and Proof: The final aggregated data is permanently stored on BandChain, and an oracle data proof is produced.

  1. Data Transfer: The validated oracle data is transferred to the requesting dApps or blockchains.
Consensus Mechanism

Band Protocol uses a Delegated Proof-of-Stake (DPoS) consensus mechanism to secure its oracle network. Validators must stake BAND tokens to ensure data accountability and are rewarded with a share of query fees and block rewards. Token holders can participate as validators or delegators to earn staking rewards and data request fees.

Security Measures

To address security concerns, Band Protocol employs several measures:

  • Random Validator Selection: Validators are chosen randomly for each transaction to prevent manipulation.
  • Run-Time Security Validation: Scripts that relay information execute only after passing a run-time security validation.
  • dApp Security Conditions: dApps can impose their own security conditions on the data they access.
Token Usage

The BAND token is used for several purposes:

  • Compensating Validators: Validators are rewarded with BAND tokens for their work.
  • Paying Data Providers: Data providers are paid in BAND tokens for making their data available.
  • Governance: BAND tokens are used for the protocol's governance mechanism.
Goals and Features

Band Protocol aims to achieve speed, scalability, cross-chain compatibility, and data flexibility. It supports various methods of retrieving and aggregating data, making it a versatile solution for dApp developers. The platform's unique features include:

  • Interoperability: Band Protocol can service projects across different blockchains.
  • Customizable Oracle Scripts: Developers can create custom-made oracles using WebAssembly to connect smart contracts with traditional web APIs.
  • Band Standard Dataset: A collection of over 80 data feeds from various sources, allowing for real-time price information and other data oracles.

By providing a reliable and decentralized bridge between real-world data and blockchain applications, Band Protocol enhances the functionality of smart contracts and supports the growth of decentralized finance (DeFi) and Web3 ecosystems.

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Band Protocol's strengths

Band Protocol (BAND) has several strengths that contribute to its success as a decentralized blockchain oracle provider:

  1. Cross-Chain Compatibility: Band Protocol is blockchain-agnostic, meaning it can work with various blockchains such as Ethereum, Polkadot, Icon, Tron, Solana, and Cosmos, allowing for seamless data exchange across different blockchain ecosystems.

  2. Efficient Data Aggregation: Band Protocol aggregates data from multiple sources, ensuring that the data provided to smart contracts is accurate and reliable. This is particularly useful for DeFi protocols that require real-time data to execute transactions correctly.

  3. Decentralized Oracle Network: Band Protocol relies on a network of trusted validators who provide data based on the size and maturity of their stake. This decentralized approach ensures that data is not controlled by a single entity, maintaining the integrity of the data.

  1. Cost Savings: Band Protocol's use of the Cosmos SDK allows for low-latency and high-throughput, reducing costs for data-hungry applications. Additionally, the project's ability to work across blockchains enables cost savings by avoiding the need for coin conversions.

  2. Security: Band Protocol's consensus mechanism is based on Proof of Stake (PoS), which contributes to the security of its oracle network. Validators must stake BAND tokens, discouraging malicious behavior and ensuring the network runs smoothly.

  3. Flexibility: Band Protocol provides multiple methods of retrieving and aggregating data, allowing for flexibility in data sourcing and usage.

  1. Native Token (BAND) Utility: The BAND token has multiple use cases, including becoming a validator, staking for rewards, and paying for data services. This utility adds value to the token and incentivizes participation in the network.

These strengths position Band Protocol as a reliable and efficient decentralized oracle provider, making it an attractive solution for DeFi protocols and other applications that require accurate and timely data.

Band Protocol's risks

Band Protocol (BAND) carries several risks that investors should be aware of:

  1. Oracle Manipulation: One of the primary risks associated with Band Protocol is the possibility of oracle manipulation. This could lead to inaccurate data being supplied to decentralized applications, which could have significant consequences.

  2. Slashing Penalties: Validators in the Band Protocol are subject to slashing penalties if they engage in malicious activities such as double signing. This penalty not only affects the validator but also the users who have delegated their BAND tokens to that validator. The penalty can be as high as 5% of the staked tokens.

  3. Downtime Risks: Validators who are offline for extended periods can face downtime penalties, which include a 0.01% slashing penalty and being put into "jail" until they prove they are back online and operational. This also affects users who have delegated their tokens to such validators.

  1. Risk of Centralization: The Delegated Proof-of-Stake consensus mechanism used by Band Protocol can lead to centralization if a few validators control a significant portion of the network. This could compromise the security and decentralization of the network.

  2. Market Risks: Band Protocol is a relatively small cap project, which means it is more susceptible to market fluctuations and volatility. This can result in significant price swings, making it a higher-risk investment.

  3. Competition: Band Protocol operates in a competitive space, primarily competing with Chainlink. This competition can impact its market share and adoption, potentially affecting its price and overall success.

  1. Regulatory Risks: As with any cryptocurrency, Band Protocol is subject to regulatory risks. Changes in regulations or laws governing cryptocurrencies could negatively impact the project's operations and value.

  2. Investment Risks: Investing in Band Protocol, like any cryptocurrency, carries inherent risks. Investors may lose all or part of their investment, making it essential to carefully assess the risks and invest according to their risk profile.

These risks highlight the importance of thorough research and due diligence before investing in Band Protocol or any other cryptocurrency.

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Did Band Protocol raise funds?

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Band Protocol’s team

  • Soravis Srinawakoon: CEO and Co-founder, holds a bachelor's degree in computer science and a master's in management science and engineering from Stanford University. He worked at Boston Consulting Group before launching Band Protocol.
  • Sorawit Suriyakarn: Chief Technical Officer (CTO) and Co-founder, holds bachelor's and master's degrees in electrical engineering and computer science from MIT. He worked at Hudson River Trading, Quora, and Dropbox before joining Band Protocol.
  • Paul Nattapatsiri: Chief Product Officer, created crypto-based games that attracted over 800,000 users since 2013. He worked at TripAdvisor and Turfmapp before joining Band Protocol.
  • Bun Uthaitirat: Team member.
  • Kanisorn Thongprapaisaeng: Team member.
  • Prin Rangsiruji: Team member.

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