What Is Band Protocol?
Also known as: BAND, BandChain, Band Protocol Oracle
In short
Band Protocol is a cross-chain decentralized oracle platform that brings real-world data such as price information, sports results or weather to smart contracts on different blockchains. Its native token is BAND.
Band Protocol runs on its own blockchain called BandChain, built with the Cosmos SDK. When an application requests data, validators selected by stake collect the data from specified external sources (APIs), aggregate the results and record them on BandChain. This result is then delivered, along with its proof, to the requesting blockchain. Performing most of the computation on its own chain aims to reduce costs on the target networks.
Developers can write oracle scripts that define which sources data is collected from and how it is processed. Band integrates with various EVM-compatible and other networks, primarily the Cosmos ecosystem, and supplies price data to DeFi protocols.
The BAND token is used for validators staking to secure the network, for distributing rewards and for on-chain governance. The stake of validators who fail to fulfill their duties can be penalized. Band Protocol operates in the same space as oracle projects such as Chainlink and API3; the accuracy of oracle data is critically important for the security of the protocols that depend on it.
Last updated: · This content is for information purposes only and is not investment advice.