What is Band Protocol (BAND)?
Smart contracts as currently conceived suffer from a crippling limitation that can prevent them from serving as the foundation of truly useful dApps.
Suppose you’re writing a dApp that allows users to execute trades automatically when certain conditions are met. For example, a user might choose to increase Ether holdings by 10% when the price of gold falls $100 or more in a 30-day period.
The problem is that your dApp runs on the blockchain and the price of gold is reported at websites that aren’t on the blockchain. There’s no bridge that allows your smart contract to import the price of gold onto the blockchain. Your trade will never be triggered.
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Band Protocol is one of a handful of blockchain oracle platforms that address this problem. Oracles serve as bridges that allow blockchain-based smart contracts to access reliable, validated digital data from outside the blockchain.
Band Protocol runs its own blockchain, a Cosmos-compliant public blockchain known as BandChain. Stakeholders on BandChain validate data coming from digital sources so the information is accessible to smart contracts on Ethereum and other blockchains that run smart contracts. Your dApp can use Band Protocol as a reliable oracle when it comes to the price of gold.
BAND is the Band Protocol project’s utility and governance token. Validators earn their position by owning a minimum threshold of BAND tokens or having the validation rights delegated to them by other BAND holders.
How Does Band Protocol Work?
New data sources typically become available when a data provider uses a public API to request publication of its data on the BandChain. Providers must pay to have their data published on the BandChain. They make money every time the data is accessed by a smart contract or dApp.
Band Protocol uses sophisticated calculations to determine how much to charge data providers to be present on the BandChain and how much to charge developers and users for access to the data.
Band Protocol has established a network of validators on BandChain. The validators use a blockchain-based consensus mechanism to establish the validity and reliability of data sources.
Once the data is present on the BandChain, it can be accessed by smart contracts on Ethereum, Cosmos, and other blockchains.
BAND is the currency data providers and consumers use to pay for Band Protocol’s services. It is used to compensate validators for their work and to pay data providers.
BAND is also available at crypto exchanges for investment purposes. Band Protocol discourages simply holding the token with an automated inflation schedule that ensures BAND gets less valuable over time. However, BAND tokens earn a good return – currently about 15.5% annually – when they are delegated to validators.
Who Are the Founders of Band Protocol? (History of Band Protocol)
Band Protocol was launched in Thailand by three founders.
CEO Soravis Srinawakoon holds a bachelor’s degree in computer science and a master’s in management science and engineering from Stanford University. Before launching Band Protocol, he held positions at Boston Consulting Group.
Chief Technical Officer Sorawit Suriyakarn 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 the Band Protocol launch team.
Chief Product Officer Paul Nattapatsiri has created crypto-based games that have attracted more than 800,000 users since 2013. He joined the Band Protocol team after working at TripAdvisor and Turfmapp.
Band Protocol’s 2019 initial release was hosted on Ethereum. In 2020, the company released a new version based on BandChain. Built according to the Cosmos spec, BandChain is a public blockchain that provides interoperability with dApps based on a wide variety of blockchains.
What Makes Band Protocol Unique?
Band Protocol’s move from Ethereum to a Cosmos architecture turns out to be a competitive advantage. Other blockchain oracles can face high charges and slow execution due to coin conversion and other charges. Cosmos transactions are faster and less expensive.
It is Band Protocol’s agnostic approach to data consumers that gives it a unique edge in the blockchain oracle market.
What Gives BAND Value?
The BAND token was not designed as a vehicle for investment. The Band Protocol team’s decision to enact a gradual inflation process to decrease the token’s value over time demonstrates that.
Market watchers say the tokens can be good value for investors who delegate them to validators. Many factors influence the return, but current BAND holders are seeing annual returns of 15% or more for delegating their holdings to validators.
How Many Band Protocol (BAND) Coins Are in Circulation?
The BAND token was launched in a September 2019 initial exchange offering. Tokens were sold in three rounds: seed, private, and public.
The total supply of BAND is capped at 100 million. tokens are currently in circulation.
Twenty percent of the total BAND token supply is reserved for team members and their advisors. Another 25.63% is allocated to operating costs.
Other Technical Data
Band Protocol is part of the OpenAPI Initiative, an industry consortium that helps define standards for APIs. This is an important issue for blockchain oracles because smart contracts and dApps on other blockchains access external data through Band Protocol’s APIs.
The Band Protocol team expects to launch version 2.0 of BandChain by the end of 2021. The revised network will offer more opportunities for providers to earn rewards for the data they supply.
How Is the Band Protocol Network Secured?
A blockchain that imports data from external data sources faces unique security concerns. Validators could approve erroneous data to manipulate the market.
Band Protocol addresses this concern by choosing validators at random for each transaction. Scripts that relay information execute only upon passing a run-time security validation. dApps that access Band Protocol data can impose their own security conditions as well.
With these measures in place, Band Protocol data is abundantly tested and verified before it is imported to BandChain or relayed to dApps. These security measures are added to whatever measures are put in place by the data providers in the first place.
How to Use Band Protocol?
Blockchain oracles find immediate, obvious applications in fintech and decentralized finance apps. Among the first data sources to find their way onto the BandChain are price feeds from crypto exchanges and stock exchanges. This data is useful to developers of a wide variety of financial applications.
Gambling is another likely use of oracles like Band Protocol. If you support sports betting on the blockchain, your dApp needs a reliable source of data about sports scores and other statistics. Gambling apps need to know what cards were dealt or what numbers came up on the dice. A blockchain-based science app could use Band Protocol to gather weather information from monitoring stations around the globe.
Any dApp that relies upon real-world data needs a blockchain oracle.
How to Choose a BAND Wallet?
BAND tokens can be stored in just about any cryptocurrency wallet. One of the best ways to keep BAND and other cryptocurrencies secure is in an encrypted hardware wallet. Among the most popular hardware wallets are those made by Ledger and Trezor. Hardware wallets use sophisticated encryption techniques to maintain security. Some even support mechanisms for restoring access to your crypto funds if the wallet is lost, stolen, or damaged.
Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of BAND or more novice users.
Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your BAND, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.
Kriptomat offers a secure storage solution, allowing you to both store and trade your BAND tokens without hassle. Storing your BAND with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
Buying and selling BAND, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.
Band Protocol Proof of Stake
The BandChain network is secured by a delegated Proof of Stake scheme. Data and transactions are approved by a community of validators, with both their BAND holdings and delegated BAND tokens contributing to their stakes.
Strike Up the BAND
BAND is a utility token that would ordinarily be of little interest to investors. The Band Protocol team has deliberately tried to quash that interest by enacting a phased inflation mechanism.
A growing number of investors are finding BAND a good source of passive income, however. When BAND holdings are delegated to a Band Protocol validator, micropayments accrue with every transaction. Depending on market conditions, this income compares favorably with the return from ordinary investing.
The real value of BAND is its place as an element of the Band Protocol blockchain oracle platform. Band Protocol faces stiff competition. Market leader ChainLink is 40 times its size. But Band Protocol’s blockchain-agnostic interoperability and low transaction fees give it a competitive edge.
Want to be part of the Band Protocol oracle project? Simply create a Kriptomat account and you’ll see just how easy it can be.
Band Protocol FAQ
Here’s some information to help you get started with this unique cryptocurrency.
How to Buy Band Protocol
The best, most affordable, and easiest way to acquire BAND tokens is right here at Kriptomat. Just click the link for detailed instructions on how to buy Band Protocol.
How to Sell Band Protocol
Selling BAND tokens is just as easy. Once the tokens are securely in your Kriptomat wallet, press “Sell” and follow the directions on your screen. There’s nothing to it.
Band Protocol Price
BAND’s price is influenced by many factors, including Band Protocol’s success in signing up data sources and dApp developers.
The current price is EUR, and the 24-hour trading volume is EUR.
BAND is currently ranked of all cryptocurrencies by total market cap, with a market cap of EUR. It has a circulating supply of BAND tokens and a max supply of tokens.
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