Band Protocol is a project that has recently garnered much attention from cryptocurrency investors in Vietnam. Known as the 9th IEO project of Binance Launchpad, Band Protocol demonstrates high technological evaluation and potential. Let’s find out what Band Protocol is, what Band coin is, and its pros and cons.
What is Band coin, and should you invest in it 2024?
What is Band Protocol?
Smart contracts are significant for their immutable storage and verifiable transactions, but their use cases were previously limited due to access to external data. Most blockchains cannot connect with events in the real world, nor access any data not originating from the chain itself. The task of Oracles is to:
- process data requests from dApps
- Query data from corresponding providers and
- Report results back to the application.
Here’s a quick example of how Band Protocol would address such issues in practice:
Imagine you’re building a dApp for betting on sports events. To settle bets and reward the correct winner, your smart contract needs to know the results of the mentioned events. When your smart contract queries BandChain for results, the network will provide it back to the contract and help it reward the one with the correct prediction.
History of Band Protocol:
In 2017, Band Protocol began building on the Ethereum blockchain, and Band’s mainnet was launched on 30/09/2019.
By 2020, Band Protocol had upgraded to version 2.0 and built on its blockchain, known as BandChain, with the integration of Cosmos SDK.
What is Band coin?
Main functions of BAND coin:
+ Governance of BandChain: BAND is a governance token. As a BAND owner, you have the right to propose and vote in polls conducted within the network. Votes are often held to decide on the use of the community’s common expenditure fund or future changes and upgrades to Band Protocol.
+ As a Means of Payment: Use BAND coin to conduct transactions on the network, pay transaction fees, or access private data APIs.
+ Staking Rewards: You can earn passive income by staking BAND coins to be a validator node or delegate to others.
***BAND coin cannot be mined like Bitcoin or Ethereum
- Trading code: BAND
- Blockchain: Ethereum
- Token type: Utility token.
- Token standard: ERC-20
- Total supply: 100 million
- Circulating supply: 144,890,607
- Current price of BAND coin: $ 1.15
How is the BAND token distributed?
With a maximum total supply of 100 million tokens, BAND is allocated by the development team as follows:
♦ 22% of the total supply is allocated to the Foundation.
♦ 5% of the total supply for Private Sale, 5% for the advisory team.
♦ 20% allocated for the development team.
♦ 25.63% for ecosystem development.
♦ 12.37% offered publicly through Binance Launchpad.
♦ 10% reserved for seed investors.
The BAND token will be distributed over 5.5 years as per the following schedule:
Who are the founders of Band Protocol?
Band Protocol was founded by a team of experienced developers, with the three main co-founders of Band Protocol being:
Soravis Srinawakoon: Currently serving as the CEO of Band Protocol, he graduated from Stanford University, worked at the Boston Consulting Group, and was honored in Forbes’ ’30 under 30′.
Sorawit Suriyakarn: Currently the CTO of Band Protocol, he graduated from the Massachusetts Institute of Technology (MIT), and worked at Hudson River Trading, Quora, and Dropbox.
Paul Nattapatsiri: Currently serving as the CPO of Band Protocol, he worked at Tripadvisor, Turfmapp, and created play-to-earn games with over 800,000 users since 2013.
Investors involved in Band Protocol:
What problem does Band Protocol solve?
One of the biggest challenges for any decentralized application is having access to trustworthy data and services through traditional Web 2.0. Band Protocol addresses this by building a decentralized bridge to enable secure interaction between smart contracts and the traditional web.
There are many data providers in the market, but there’s no way to ensure the authenticity of data. Real-world data plays a crucial role in the success of many DeFi protocols, but relying on a centralized data provider can be counterintuitive to smart contracts.
To ensure true decentralization of DeFi protocols, they can access truly decentralized protocols like Band Protocol. Considering their decentralized nature, decentralized oracles are better at providing real-world data to their smart contracts than centralized oracles. Band Protocol’s website succinctly summarizes what they do:
“Band Protocol addresses the centralization of Oracle by providing a robust, secure, and efficient way for smart contracts to interact with any external information – maintained by community-managed data providers.”
The rising influence of decentralized applications clearly shows that the demand for decentralized applications will only increase in the future. That’s the market Band Protocol aims to tap into with its development of a decentralized cross-chain oracle network.
Band Protocol’s Competitors
Chainlink is the biggest competitor of Band Protocol. So, how does Band Protocol compare to Chainlink?
To date, Chainlink is the leading decentralized Oracle data project known to many, with a substantial gap between Chainlink and Band Protocol in terms of market cap ranking. Chainlink ranks at 18 while Band Protocol ranks at 318.
The first major difference between them is the fact that Chainlink is built on Ethereum, while Band Protocol decided to leave Ethereum and establish itself on Cosmos. This is crucial as different blockchains have different features and are used for different types of projects. However, the choice of which one you will use depends not only on the type of project you have but also on the speed and cost of data retrieval.
To better explain this, assume you have a dApp with a smart contract communicating with Chainlink to receive external data. The dApp will send a request for information and pay for it with ETH, which will then be converted to LINK. This conversion must occur because nodes are paid in LINK tokens to provide data, but this is also when the problem arises.
You see, Ethereum has been known for a long time for its lack of scalability and low throughput, leading to long waiting times and even worse – the highest fees in the entire cryptocurrency industry. It has reached the point where many people have started leaving the blockchain to find alternative options to Ethereum to avoid this issue.
And when it comes to dApps and smart contracts requiring real-time data, Chainlink is not the best way to use.
On the other hand, with Band Protocol, there are also dApps and smart contract executions, also requiring data from outside. Once again, the dApp will pay with ETH to receive this data and the ETH is then converted to BAND tokens. However, the difference is that this conversion does not take place on Ethereum’s infrastructure but on Cosmos’s infrastructure.
Since Cosmos has extremely high scalability compared to Ethereum, it can process transactions almost instantly, meaning you don’t have to wait long and therefore don’t suffer from network congestion and unnecessary high gas fees.
Pros and Cons of Band Protocol/coin
Where to buy BAND coin, which exchanges?
Wallets for storing BAND tokens
For more useful information:
From here, you must have understood what BAND coin is, what Band Protocol is used for, its pros and cons, and whether you should invest in BAND coin or not. If you have any questions, leave a comment to get an answer within 24 hours. Wish you make the right investment choice and succeed.
