Band Protocol (BAND)
Band Protocol statistic
What is BAND?
The BAND is a token native to Band Protocol. The latter is a cross-chain decentralized oracle solution aiming at augmenting smart contracts with the data infrastructure layer that enables decentralized applications to access off-chain data necessary for contract execution. The BAND token strives to represent the network value of this infrastructure.
The invention of smart contracts was a major breakthrough in the blockchain space and significant milestone for the advancement of blockchain technologies since the creation of Bitcoin itself, but they are not without certain weak points and shortcomings. DApps built on top of smart contracts need to access external information despite being constrained within the limits of their respective blockchains.
To close this gap and provide a link between dApps and off-chain data sources, the Band Protocol project had been started in 2017. In September 2019, it went live on the Ethereum network, with the official launch of the first version of Band Protocol announced on September 30 after successful fundraising on Binance Launchpad earlier that month. For this funding round approximately 12.3M BAND tokens out of 100M total token supply had been allocated, which amounted to over $5.8M of capital raised.
On February 19, 2020, the project team announced the first testnet launch of BandChain, a high performance independent blockchain based on Cosmos SDK. It aims to meet the demands of real-time data requests coming from dApps on destination blockchains. According to Band Protocol developers, the underlying tech can bundle transactions together preventing on-chain congestion and transaction failure – something that the Ethereum blockchain is susceptible to. BandChain is scheduled for official release later in 2020.
On June 5, 2020, Frontier Wallet announced full support of the BAND token by their mobile application. Now the wallet users can safely store and stake BAND tokens for data validators on the BandChain network. On July 8, 2020, Band Protocol entered a strategic partnership with Waves Platform, with the goal of securing the bridge between decentralized applications built on the platform and external data sources that are made available through Band Protocol oracle requests.
Where can BAND be used?
The Band Protocol ecosystem consists of two token types: the first is BAND token and the other dataset tokens. The BAND is a utility token (aka “work” token), and as such, it is intrinsically linked to and inseparable from Band Protocol and its field of application. BAND provides a mechanism to uphold integrity of the system, and reflects the collective value of all datasets inside Band Protocol.
Data sources on Band network must stake their tokens, knows as dataset tokens, in order to provide data and earn query fees, with BAND being used for payment. The token can be used both as collateral to issue dataset tokens and as a voting token for on-chain governance decisions.
Additionally, the BAND token holders are able to use BAND as the staking token to secure the network through delegated proof-of-stake consensus mechanism by participating in consensus and data provision. Block rewards on BandChain are BAND tokens, and they are distributed to validators and delegators for upholding the security and integrity of the ecosystem through DPoS economic incentives.
Pros and cons
The BAND token empowering Band Protocol is a cutting edge technology but it only has a small market cap compared to other big players in the oracle arena, while Band protocol itself is an instance of amazingly well-put-together tech. Thus, it has a lot of potential, and still more after the current economic downturn is over, with oracles being of paramount importance for the smart contract space.
However, the economic downturn in point may last longer than expected, and there might not be enough demand from the market to drive its future growth and adoption.
“Binance is committed to growing the blockchain ecosystem, including the ongoing development of Decentralized Finance, an important part of the ecosystem. Through the help of Binance data and Band Protocol’s solutions, we can help accelerate the growth of DeFi.” – Changpeng Zhao, Binance CEO.
“The opportunity to work with Band Protocol to expand our business into DeFi is logical, given the huge uptake we have seen in the space over the past year. For us, it presents an intriguing potential new avenue for revenue that will utilise our existing infrastructure.” – TM Lee, a co-founder of CoinGecko.
“In combination with Band Protocol’s decentralized oracle network that offers end-to-end flexibility for developers, near-instant finality, and fractional data request fees, we’re enabling the creation of next-generation applications that has never been seen before.” – Sasha Ivanov, a founder and CEO of Waves Platform.
Band Protocol is supported by the major cryptocurrency exchange Binance. In this way, any smart contract on Ethereum or any other blockchain that Band integrates with can query anything potentially retrievable through the Binance API.
How to get BAND token?
Today BAND price is 6.3546 USD. You can buy BAND at StealthEX exchange with a low fee.
Just go to StealthEX and follow these easy steps:
✔ Choose the pair and the amount for your exchange. For example ETH to BAND.
✔ Press the “Start exchange” button.
✔ Provide the recipient address to which the coins will be transferred.
✔ Move your cryptocurrency for the exchange.
✔ Receive your coins!